Investing in Gold and key price drivers have become the talking point lately among those who are involved in monetary markets. The recent surge of gold prices is being witnessed by the whole world. And many can’t wait to get themselves in this sector. However, there are many factors that you need to know about the market before you invest in it.
So how should we invest? Well, as you might already know, large buyers and official stockholders normally buy the metal from giant banks. London is the center of the worldwide spot gold market, having more than $33 billion in trades which passes through the city’s payment system each day. Taking into consideration the need to avoid security risks and cost, the bullion is usually not moved physically and deals are therefore cleared through paper transfers. But London is not the only significant market for physical gold as there are many others in India, China, the Middle East, Turkey, Singapore, Italy and the United States.
Stockholders can also enter the market through future exchanges, as people trade in contracts to sell or buy a specific product at a stable price on a particular forthcoming period.
China, India, Dubai and Turkey, all have launched futures exchanges.