Precious Metals
Precious metals refer to products derived from valuable metals, commonly including gold, silver, platinum, and palladium, with gold holding a particularly prominent position. The value of precious metals is almost entirely determined by their precious metal content. These metals are traded as commodities and have established markets for trading by quantity, with options for both immediate (spot) and future transactions.
Gold Mines
A gold mine refers to a site where gold can be extracted through mining processes. Geologically, a gold deposit is a mineral accumulation formed by metallogenic processes, where gold-bearing ore is concentrated.
Gold Investment
Gold has long been regarded as a tool for wealth preservation. Over time, as trading options have expanded, so too have the ways to invest in gold. Traditional methods of gold investment include buying gold bars, coins, and jewelry. Additionally, investors can choose other gold investment products, such as gold stocks, spot gold (London gold), gold futures, and paper gold, catering to various investment strategies.
Gold Bars
In gold investment, physical gold is a popular choice, often in the form of bars or ingots. Gold bars can generally be divided into two types: commemorative bars and investment bars. Investment bars are high-purity gold bars, typically containing 99.99% pure gold, and are traded based on international gold prices, designed specifically for investment and wealth management. Major banks and financial institutions reserve and circulate their branded gold bars.
Gold Coins
Gold coins are another option for physical gold investment and can be divided into two categories: circulation coins and commemorative coins. Circulation coins, also known as investment coins, are liquid assets similar to investment gold bars and are often used for investment, wealth preservation, and appreciation.
LBMA
The LBMA, or London Bullion Market Association, is the primary body governing the London gold market, the largest gold market in the world. Although London has no official gold exchange, gold trading is conducted through the LBMA. Established in New York in 1987, the LBMA’s members include the five major reputable gold dealers and companies recognized for their strength in gold trading.
Spot Trading
Spot trading refers to transactions where buyers and sellers trade physical goods with immediate or near-immediate delivery based on agreed-upon payment and delivery terms. In spot trading, ownership of the commodity is transferred simultaneously with the physical exchange, completing both transaction and circulation.
Bid Price, Ask Price, and Spread
The bid price is the amount a business is willing to pay to purchase a product from a customer. The ask price is the price at which a business sells a product. Together, these prices form the quotation. The spread is the difference between the bid and ask prices, representing the margin between what a seller is willing to accept and what a buyer is willing to pay to repurchase the product.
