Precious Metals 121124: Gold pushing higher on politics, tariff fears
Wednesday 8:25 AM
Gold market investment solutions
Dive into the gold market with in-depth analysis and guidance on effective gold investment strategies for self-directed investors, institutional clients and commercial businesses.
Gold market overview
Gold offers a blend of stability, liquidity and potential for growth which appeals to a wide range of investors. This highly sought-after commodity is a staple in diversified portfolios and gold trading is popular worldwide.
Unlike fiat currencies, gold is not subject to the same kinds of inflationary pressures, which make it an attractive hedge against inflation and currency devaluation. While gold has been known to hold its value even in the face of economic downturn, like any investment it can be unpredictable and will always fluctuate in price.
Gold's liquidity is another key factor in its popularity, as it can be bought and sold in many forms such as unallocated, bullion and coins. This ease of trade, coupled with consistent demand, makes gold a versatile asset suitable for diverse investment strategies and both seasoned traders and new investors alike.
StoneX offers precious metals clients a full suite of gold services, including extensive financial and physical trading capabilities, advanced platforms and more.
The London Bullion Market Association (LBMA)
StoneX is a member of the London Bullion Market Association. We also hold other memberships such as the London Platinum and Palladium Market Association, Singapore Bullion Market Association, and the Dubai Gold and Commodities Exchange.
The true benchmark of gold pricing is set by the London Bullion Market Association (LBMA) twice daily. The LBMA is an international trade association, which has a global client base which includes private sector investors, most of the gold-holding central banks, as well as mining firms, producers and refiners.
As well as setting the price of gold, the LBMA also set the standard for gold quality (or ‘good delivery’ standard), which includes a minimum purity of 99.5%. The twice daily fixed prices, however, are always based on pure gold.
Buying gold: Coins and bars
Physical gold bullion is largely traded in either gold bars or gold coins, with bullion coins usually commanding a higher premium. This is due not only to the costs associated with production, but the fact that they are collectible, with coins released to commemorate events such as the turning of the Millennium and the anniversary of The US Mint.
These gold coins are minted in a variety of countries, but most tend to originate in the UK, the US, Canada, Australia, China, and South Africa. The most popular and widely traded coin currency is the British gold sovereign, which also happens to be exempt from capital gains tax in the UK.
Some of the other most famous gold coins include the Gold Eagle (USA), Maple Leaf (Canada), Krugerrands (South Africa), Gold Panda (China) and Vienna Philharmonic (Austria).
In terms of weight, most bullion coins are minted in 1/10oz, 1/4oz, 1/2oz, and 1oz sizes, but are sometimes available in larger 2oz, 10oz, or even 1 kilo sizes. Bullion bars on the other hand are available as parts of an ounce, multiples of one troy ounce, grams, or kilograms, and again as parts or multiples of these units of weight.
You can get started with buying coins and gold bullion bars at StoneX Bullion.
StoneX Bullion: Your reliable partner for gold investments
StoneX Bullion* offers you the chance to buy, sell, and invest in rare gold coins and bars easily and quickly from almost anywhere in the world. We stock high-quality and sought-after metals, sourced from some of the best-known mints such as the Vienna Philharmonics, Canadian Maple Leaf, and South African Krugerrand.
No matter whether you're looking to invest in bullion for your future, or whether you're after a special coin to crown your collection, you'll find it at StoneX Bullion.
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Precious metals Market Intelligence
Precious Metals 120924: Weekly round-up for StoneX Bullion; Gold still marking time while the Chinese Central Bank collars the headlines (some of them)
Monday 2:41 PM
Precious Metals London Weekly Front Desk Presentation 120424; Interest rates, yen carry and French issues = zero sum for gold
Wed, Dec 4, 2024 at 04:04 PM UTC
Precious Metals 120224: Weekly round-up for StoneX Bullion; gold marking time, possible short-term presssure
Mon, Dec 2, 2024 at 02:02 PM UTC
Upcoming events
Gold investment FAQ
How do I buy gold?
For self-directed investors interested in buying coins or gold bullion for their portfolio, visit StoneX Bullion.
For institutional investors and commercial businesses looking for precious metals services, get in touch with the StoneX Precious Metals Team.
What impacts the price of gold?
Like most commodities, the price of gold often comes down to supply and demand. And, as it is used today in the manufacturing of electronics and medical devices as well as jewelry and investment, it is a precious metal that is very much in demand. However, the price of gold still fluctuates, and this can be linked to several different factors, including:
- Interest rates – Gold does not pay out interest, and so you effectively lose out on interest you could’ve earned had you invested in cash instead – this is known as ‘opportunity cost.’ That said, interest rates and the cost of gold are not always in sync, as while they often rise and fall together, they can also move in opposite directions.
- The stock market – The price of gold tends to move in the opposite direction to the stock market, and does so just less than 50% of the time. This is why gold can help in building a more stable investment portfolio that doesn’t rely upon stocks and shares alone, as investors can minimize the risk of all their assets rising and falling simultaneously.
- The US dollar – The US dollar is often used as a benchmark in quoting natural resources, and gold is no different. While a weak dollar has been known to make the price of gold rise approximately 60% of the time, it does not always work out like this, and in recent years we have seen gold increase in worth alongside the dollar.
What are gold futures?
Gold futures are financial contracts obligating the buyer to purchase gold, and the seller to sell gold, at a predetermined future date and price. Traders can use gold futures to speculate on the future price of gold. Investors and producers use them to hedge against price fluctuations.
What is gold trading?
Gold trading refers to the buying and selling of gold as a form of investment or speculation. It encompasses various methods, including the purchase of physical gold, trading gold futures, and investing in gold-related financial instruments.
Where is gold primarily traded?
The majority of physical gold is bought and sold in over-the-counter trading (OTC), which means it is bought and sold via a dealer network, rather than a centralized exchange. According to the World Gold Council, around 90% of global gold trade occurs in the London OTC Market or exchanges like New York’s COMEX or the Shanghai Gold Exchange.
StoneX: We open markets
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