Category: Beginner Metals October 16, 2024

Trading Gold Bullion on the Exchange

Gold bullion is traded on the exchange after it arrives at the futures exchange warehouses in good condition, making it “eligible for trading.” At this stage, delivery receipts are issued, making the gold similar to “registered” stocks.

These receipts serve as proof of ownership that can be transferred between individuals, while the holder incurs the associated storage costs. These receipts often remain with brokerage firms that act as intermediaries in the trading process. It is rare for individuals to keep these receipts, as trading them is viewed as a means to generate profit, similar to stocks and bonds, rather than holding them as assets.

In this way, investors can enter the gold market and take advantage of its fluctuations to achieve financial returns.

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