Investing in gold between features and risk


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Metal gold is the most precious metals known since thousands of years, estimated size of gold on the surface of planet Earth, either underground or Extractor around 130000 tonnes the total quantity of gold that hasn't been extracted so far about 50000 ton gold reserve is called, comes why extracted because the extraction process is difficult and complex and require a lot of money and also time until it is extracted.
It features gold without other metals bright shiny beautiful shape and brilliant colors, and that's what makes him a measure of beauty, it is also important to keep goods worth over time, anyone that was money in gold, so is considered a symbol of wealth and affluence, jewellery and jewellery is more gold-consuming industries in the world with an estimated volume of gold used in jewelry industry around 3000 tons each year.

History of gold

In ancient times, gold was used only in the manufacture of jewellery but was used as coins due to its features of erosion over time have changed the currency of gold industry to become different sizes industry retain its value.

Gold is considered of great standing investment goods between investors and global markets so that the growing popularity of buy it influencer, gold and numerous economic problems confronting States as a source of secure, proof of validity of this talk that central banks in Nations increased their Gold purchases dramatically over the past year as its insurance source and save the devaluation plus an investment guarantee of depositors.

What is investing in gold?

Featuring gold without other investments that maintains its value over time and that's what makes it the most attractive and safe haven always too other than investing in bonds and stocks that change and fluctuate on a daily basis.

The main goal of gold is that it's a good way to hedge against fluctuations and crises, we find, for example, when fluctuations in the stock markets with the decline in the value of currencies that have a positive impact on gold and makes it go up, in fact we find that gold production is increasing but very slowly increasing demand for gold it retains its value throughout the ages Unlike paper currencies.

What are gold futures and how they are exchanged?
Futures or future known as an agreement to buy or sell a certain amount and delivered at a specific time in the future in accordance with the agreement.

Many companies that work in the gold mines or jewelry makers and others always buy futures as some kind of security price volatility in the markets is called the hedge, which also competes with market bulls want to gain from rising prices and falling.

So we find that a lot of futures transactions usually ends before the agreed delivery date and not just gold but almost all commodity contracts, this indicates that most markets contain a lot of speculators.

But there are some companies that want to hedge you jewellery and then enter the futures market to sell some to avoid the risk of price movements.

To understand this more: for example a goldsmith wants 400 manufacturing ring and he needs 100 ounces of gold and will take about two weeks to finish the jeweler wants manufacturing not exposed during the fortnight of the risks of price fluctuations and movement, how does this happen?

Futures market jeweler resort to selling 100 oz in stock and at the same time he buys 100 ounces of gold to manufacture endings and this is called a hedge after making rings and sold during the fortnight buys the futures contract sold it so that he can avoid the risk of price fluctuations.

This so called trading in futures contracts, traders are always trying to change the price trends for profit but which determines that many factors, including the gold industry and their fundamentals, plus it is on the list of safe havens in the market that tended to avoid investors to the risks of financial markets.

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