Financial Knowledge

The characteristics of gold options, gold stocks and gold funds

June 17, 2020

Option is the price agreed by the buyer and the seller in the future, with the right to purchase a certain amount of subject matter rather than the obligation. If the price trend is favorable to the option buyer, it will exercise its rights and gain profits. If the price trend is adverse to it, the right to purchase will be waived, and the loss will only be the cost at the time of option purchase. Because there are many and complex investment strategies in gold option trading, it is not easy to master them. At present, there are not many gold option markets in the world.

The so-called gold stock is the listed or unlisted stock issued by the gold company to the public, so it can also be called the gold company stock. Because buying and selling gold stocks is not only an investment in gold companies, but also an indirect investment in gold, this kind of investment behavior is more complicated than simple gold trading or stock trading. Investors should not only pay attention to the operation of gold companies, but also analyze the price trend of gold market.

Gold fund is the abbreviation of gold investment mutual fund. The so-called gold investment mutual fund is a kind of mutual fund which is organized by the fund sponsor and subscribed by the investor. The fund management company is responsible for the specific investment operation and specially uses gold or gold derivatives as the investment media. Managed by an investment committee of experts. The investment risk of gold fund is relatively small and the return is relatively stable, which has the same characteristics as the well-known securities investment fund.

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