Precious metals, including rare metals such as gold and silver, have very high economic value. Especially during the financial turmoil, gold is a high coefficient choice for investors to avoid risks. Spot gold in the foreign exchange market may not need to hold physical goods for delivery, and use the margin to buy or sell in the form of a US dollar relative offer. Given the trade-off between gold and the dollar, many investors will choose to avoid the dollar risk by buying gold.
The United States began selling gold freely in 1974, and the COMEX-Commodities Exchange New York bought and sold gold as a standardized futures contract at the end of the year, a gold futures traded on the New York Mercantile Exchange. The contract has the role and function of investment; this is the first step in the modern financial market for gold, and investors are beginning to get exposed to gold trading. Since then, gold has become more and more interested in participating in gold trading with its unique value and investment function.
Fighting inflation and increasing value
When the country is inflated, the "money" will become worthless, and the price of gold will rise with inflation.
Excellent risk avoidance
When the world political situation and economic instability, other stocks, funds, real estate, etc. will suffer severely, gold can play a safe haven.
The market is difficult to manipulate
The gold market is a global market. No individual or consortium has sufficient funds to control the global gold market, so the price of gold can always be maintained at a level that reflects the actual supply and demand relationship.
Not easy to collapse, constant value
Gold stability and sexuality