Knowledge about Gold

Precious Metal

Precious Metal is a term used to describe any product produced from a precious metal, generally representing the four types of metal, Gold, Silver, Platinum and Palladium. Gold plays a particularly important role among them. The value of Precious Metal is determined almost entirely by its precious metal content. Precious Metal is traded as a commodity in trading market based on its quantities on immediate transactions and for future trades.

Gold Mine

Gold Mine is a place where gold ore can be extracted through mining activities. In geological terms, it is the piling up of gold ore and gold deposits produced by the process of mineralisation.

Gold Investment

From ancient times to the present day, gold has long been a tool for investment and value guarantee. With the increasing ways of transactions, the types of gold investment have become diversified. Besides the traditional gold investment methods of buying gold bars, gold coins and gold jewellery, investors would choose to trade gold stocks, London spot gold, gold futures, paper gold and some other gold investment products.

Gold Bullions

In gold investment, the physical gold trade involves physical gold substance, of which the most common is gold bullions or gold nuggets. Gold bullion can be classified as two types: commemorative gold bullions and investment gold bullions. The latter refers to gold bullion with more than 99.99% gold content produced by well-known companies and using the international price of gold as a reference for the sale of gold investment and financial management. The world's largest banks and financial institutions reserve and circulate their signature gold bullions.

Gold Coins

Gold Coins are also one of the objects of physical gold investment. Gold coins can be simply divided into gold coins in circulation and commemorative gold coins. The former is also known as investment gold coins. Similar to investment gold bullions, gold coins have the feature of liquidity and they can be used for investment, financial management, value guarantee and value adding.


LBMA is an abbreviation of London Bullion Market Association. London is the world's largest gold market, and London itself does not have an exchange, London's gold trading is mainly conducted through LBMA. LBMA was established in 1987 in New York, whose members are the five most authoritative gold merchants and recognised strong companies buying gold from the five gold merchants.

Spot Trading

Spot Trading refers to sales of physical goods between buyers and sellers on the demand for physical goods. It is a kind of transaction of physical goods according to the agreed ways of payment and exchange immediately or in a short period of time. In spot trading, with the transfer of ownership of goods, the exchange of commodity entities and circulation are also completed.

Bid Price, Ask Price and Price Difference

Bid Price is a price paid by merchants for the purchase of a product from a customer. Ask Price is a price that the merchant sells a product. The combining of the two Prices provides a Quotation. The difference between the two Prices is the Price Difference. In other words, it is a discrepancy between the price merchants are willing to sell a product and the price they are willing to pay to buy back the product.