Gold frequently hits sky-high prices, what is the best way to invest? This article explains how to invest.

Gold has frequently hit sky-high prices, triggering an investment boom again recently. If you want to invest in gold, what are the channels? What should we pay attention to? The following will analyze the essentials of gold investment, allowing you to quickly master gold trading methods!

The sky-high price of gold has recently triggered an investment boom again.
If you want to invest in gold, what are the channels and what should you pay attention to? The following will analyze the gold investment essentials so that you can quickly master the gold trading method! The four major investment channels for gold have kept rising this year. On April 12, the price of gold hit a record high of US$2,377 per ounce. Citibank even predicts that it will rise to US$3,000 in the next 6 to 18 months.
Due to the recent resurgence of war in the Middle East, the buying momentum for gold remains high. If you are interested in entering the gold market, what are the channels? The picture shows the CME Group gold futures June contract price trend data as of April 19. There are many ways to invest in gold, including buying and selling gold spot, gold mining There are seven methods including stocks, gold passbooks, gold funds, gold ETFs, gold futures, and gold CFDs. The following are the four methods most used by investors: First, gold passbook: open a gold passbook account at the bank through a single subscription, regular subscription, etc. Buy gold by fixed amount and other methods and deposit it into a gold passbook account; you can also sell the gold in the passbook back to the bank or withdraw physical gold according to the bank\’s gold spot specifications.
The advantage is that it can trade in small amounts and has lower risks, but it can only be bought and sold during specific periods, it lacks investment flexibility, and it is less able to respond to international emergencies in real time.
The second is gold funds: Gold funds issued by asset management companies cover the stocks of multiple gold mining companies. The advantage is that they are managed by a professional team and can diversify investment risks through a basket of stocks. They do not need to spend too much time on research, but they have to pay additional manager fees every year. and management fees.
The third is gold ETF: It is very similar in nature to gold funds and also has the concept of investing in a basket of stocks. However, the fund is an active investment and the manager actively selects individual stocks; ETF is a passive investment that mainly tracks gold-related indexes and also requires payment of management fees and custody. Fees and other expenses.
Fourth, gold futures: There are different term contracts to choose from when buying and selling gold futures contracts. The position must be closed or replaced with a new futures contract before the contract expires.
Two-way trading is possible, investment is highly flexible, transaction costs are low, and a margin system is provided to magnify profits and losses through leverage, so risks must be strictly controlled.
In addition, nearly 24-hour trading allows investors to take immediate action when major events occur (such as war in the Middle East, U.S. elections).
The new high water level of gold is particularly advantageous for flexible long and short operations. At this stage, gold is at a relatively high point in history. Many investors will inevitably worry about whether they will be cut off when entering the market at this time. Which investment strategy is better to adopt? The above four investment methods, gold passbook, Gold funds, gold ETFs and other three methods can only go long but not short. With the current high gold price, investment becomes more difficult. If you accidentally buy at a high point, you may live in a suite for a long time.
From this point of view, gold futures investment, which can operate both long and short, is highly flexible and has both hedging and arbitrage functions, which is very suitable for the current volatile environment; it also has good trading volume and liquidity. For example, the daily trading volume of CME Group’s gold futures contract Approximately 27 million ounces are equivalent to 30x the SPDR Gold ETF.
The current international situation is treacherous and the all-weather trading feature of gold futures will allow investors to respond to market changes in real time.
In particular, the CME Group has launched micro gold futures contracts, providing a good channel for petty bourgeoisie to get started in the gold market.
Because the micro gold futures contract (10 troy ounces) is only 1/10 the size of the gold futures contract (100 ounces), the margins are lower and the transaction fees are lower, but still provides the same flexibility, safety and security, it is suitable for individual investors. .
In addition, the micro gold futures contract can also be offset with the gold futures contract at a margin of 10:1.
Whether you want to fine-tune your gold position or try trading the relevant market with a smaller capital, micro gold futures contracts are a suitable tool.
Any world events, financial crises and elections can create uncertainty in the financial environment and thus affect the price of gold.
Therefore, when investing in gold, you must pay attention to the global economic situation, the economic policies and interest rate policies of various central banks, geopolitical risks, US dollar trends, gold supply and demand, etc.; at the same time, the U.S. non-farm employment population, consumer price index (CPI), production When data such as the Consumer Price Index (PPI) is released, market changes are usually relatively large and risks must be strictly controlled during operations.
How to trade gold futures in three simple steps How to trade gold futures and various overseas futures provided by CME Group? Place an order in three simple steps! Step 1. Open a futures account. Currently, futures companies such as Kanghe, Huanan, Fubon, Yuanfu, Yongfeng, Yuanta, and Dahua can trade CME Group products.
Nowadays, almost every futures company provides online account opening services. You only need to prepare relevant personal documents and information, and you can easily complete the account opening procedure at home using your mobile phone or computer.
Step 2. Futures Deposit After opening a futures account, you only need to deposit a margin to start trading.
The margin can be directly deposited in Taiwan dollars, and then the Taiwan dollars can be converted into foreign currencies through online operations through the domestic and foreign margin transfer functions provided by futures merchants, and then overseas futures can be traded.
Step 3. Place an order. Finally, you can easily place an order through the mobile APP or computer software.
In addition, if you are unable to keep an eye on the market at all times, it is recommended to set a stop loss or stop profit price in advance to control risks.

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