Gold Trading and Its Various Facets
Gold continues to be the most heavily traded metal in the commodity markets the world over. There is something about this yellow; precious commodity that makes it the preferred choice of millions as a hedge against rising inflation and even political unrest. Like everything else, Gold rates too tend to fluctuate heavily but history is witness to the fact that it never loses its sheen and investors know that eventually it will bounce back.
A great asset class to invest in, called by many as a safe-have investment. Whether we like it or not, the prices of gold are intrinsically linked to the US Dollar, that is to say, when the dollar drops, gold rises. As far as commodity trading in Dubai is concerned, gold rules the roost and the situation is not much different in other commodity exchanges in the world.
What makes it so valuable?
Like most other investments, gold too is impacted by ripples in global economy and all its related parameters like the GDP growth rates, inflation, lending and borrowing rates etc. The economics of demand - supply and market sentiment too shape the way Gold heads and one needs to keep track of all these factors besides many others to be able to trade effectively in the metal. Trading in gold is both, exciting and highly rewarding provided you know the ropes. An investor has many options to trade in this precious metal starting from outright physical possession to trading on a recognized commodities exchange. Many countries permit Gold to be traded in electronic or paper form too where one does not have to worry about keeping his assets safe. Buying and selling is easy too. Then there are numerous Gold Exchange Traded Funds (Gold ETFs) that trade on major stock exchanges just like equity and of late these have seen a quantum increase in investor base. The reason is simple. You can accumulate your Gold in small quantities at a time when the international rates are low and you get more units for your money. These also save you from overhead charges that a jeweler normally levies each time.
The hub
Dubai is recognized as the hub for physical trading in commodities and gold stands on top of the rack. To regulate commodities and Gold trading in Dubai has its own mechanism called the Dubai Gold and Commodities Exchange (DGCX) that became operative in November 2005 as the first such facility in the entire Middle East. The exchange is run by Dubai Multi Commodities Center which has the governments nod to regulate trade flows in the region. There are many advantages to an investor trading on the DGCX. With a range of futures contracts, investors get an effective tool to hedge their price risk exposure with trading opportunities being available round the world. The exchange also has an effective risk management and surveillance system in place to ensure legitimate trading with it regulator, the Securities and Commodities Authority (SCA) keeping a strict watch over all transactions. Dubai Gold trading experience glitters like none other in the world.
A great asset class to invest in, called by many as a safe-have investment. Whether we like it or not, the prices of gold are intrinsically linked to the US Dollar, that is to say, when the dollar drops, gold rises. As far as commodity trading in Dubai is concerned, gold rules the roost and the situation is not much different in other commodity exchanges in the world.
What makes it so valuable?
Like most other investments, gold too is impacted by ripples in global economy and all its related parameters like the GDP growth rates, inflation, lending and borrowing rates etc. The economics of demand - supply and market sentiment too shape the way Gold heads and one needs to keep track of all these factors besides many others to be able to trade effectively in the metal. Trading in gold is both, exciting and highly rewarding provided you know the ropes. An investor has many options to trade in this precious metal starting from outright physical possession to trading on a recognized commodities exchange. Many countries permit Gold to be traded in electronic or paper form too where one does not have to worry about keeping his assets safe. Buying and selling is easy too. Then there are numerous Gold Exchange Traded Funds (Gold ETFs) that trade on major stock exchanges just like equity and of late these have seen a quantum increase in investor base. The reason is simple. You can accumulate your Gold in small quantities at a time when the international rates are low and you get more units for your money. These also save you from overhead charges that a jeweler normally levies each time.
The hub
Dubai is recognized as the hub for physical trading in commodities and gold stands on top of the rack. To regulate commodities and Gold trading in Dubai has its own mechanism called the Dubai Gold and Commodities Exchange (DGCX) that became operative in November 2005 as the first such facility in the entire Middle East. The exchange is run by Dubai Multi Commodities Center which has the governments nod to regulate trade flows in the region. There are many advantages to an investor trading on the DGCX. With a range of futures contracts, investors get an effective tool to hedge their price risk exposure with trading opportunities being available round the world. The exchange also has an effective risk management and surveillance system in place to ensure legitimate trading with it regulator, the Securities and Commodities Authority (SCA) keeping a strict watch over all transactions. Dubai Gold trading experience glitters like none other in the world.
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