London gold has always been somewhat of a mystery. The London Bullion Market Association is seeking to change the secrecy this year. More information is going to be made available about how much gold is actually traded in the Square Mile.
London Gold Trades Hand-to-Hand
London gold doesn’t always trade in the markets. Instead, the vast majority of the gold traded in the city is done hand-to-hand. This means that there isn’t any real indication of how much gold is being traded or even what price it is traded for.
A new transparency is coming this year and big banks in London are pushing for it to happen. These large banks, which hold much of the bullion, note that the new transparency will have a positive impact on the price of hand-to-hand gold deals, as well as the price of gold futures contracts. It will include not only an account of one-on-one trades, but also information on how much gold each bank holds.
Gold Futures Contracts Being Pushed
Another push is being made to have investors and traders work through centralized systems. The financial crisis that’s been the center of attention these past few years has put the spotlight on needing to be more open about what is going on in the trading world. Supporters of pushing gold futures contracts over hand-to-hand sales note that futures trading can be closely monitored and regulated — a stark difference from what happens in hand-to-hand sales.
Gold Futures Contracts Promising
Gold is inching upwards, which is good news for cautious investors. Watching the ups and downs of the prices for futures can help you to determine when to purchase. You should buy when gold prices are in the valley and sell when they peak.
How to Trade Gold Online
The Price of gold is constantly on the move. Take advantage of the daily price changes in gold with an online trading account. Some brokers offer bonuses of up to 30% on your first deposit (Terms and conditions apply). Open Gold Trading Account Here
The broker trading platform will also provide you with numerous charting tools and the ability to trade other commodities and currencies in addition to gold CFD’s. You might also want to begin trading with a demo account before attempting to risk any of your own money. That way you can practice trading with virtual money on the demo platform first.