Introduction of spot gold

The local London precious metals market is the most important OTC market for gold and silver, and it is "Loco London". The two precious metals were settled in kind in London. The local London gold and silver market is supported by the Association of the City of London (LBMA), but the trading is not operated as an exchange, and only gold dealers with offices in London can become LBMA members.

The scope of "local London" trading was originally limited to London gold dealers, but now gold and silver trading in London, Japan, has been freely carried out in many places. Professional dealers in Asia are mainly concentrated in Hong Kong, Tokyo, Sydney, Australia and Singapore; In Europe, except London, Zurich and Frankfurt markets are the main trading places for local London gold and silver; In the United States, new york has the most frequent local London gold trading.

All the centers listed above mainly use the US dollar as the trading quotation and trading unit. Local London gold and silver are settled in kind in London and settled in US dollars in new york within two trading days after the transaction. Although the local London gold market is a spot market, the settlement time can be extended (deferred settlement) through special credit arrangements to customers. This arrangement generally involves the concepts of gold and dollar borrowing, initial and variable margin, which is similar to the operation of gold futures. This mechanism has been further developed, forming a local London precious metal deferred settlement market, which is different from the interbank spot market where only manufacturers, dealers and producers can participate. The functions of the local London precious metals deferred settlement market cover many aspects, including Hedging, investment preservation and speculative purposes.

Just like the typical over-the-counter market, there is no physical exchange in the local London market, and transactions are mainly conducted through one-to-one credit arrangements between traders. In addition, unlike the exchange, there is no specific number of contracts or trading rules for local London transactions, but transactions and settlement are completed through well-established channels. Finally, trading is mainly conducted by telephone or electronic trading system specially designed for professional traders. Both methods require direct contact from both sides, which makes it more difficult for investors to obtain the most favorable trading price in real time.

In fact, since the beginning of 2002, spot gold has steadily increased from $278.00 per ounce with the support of multiple factors, including the reduction of gold hedging by international producers, the falling dollar, the weak stock market and the unstable regional political situation, and successfully broke through the $300 mark on March 28th, rising to the highest level of $33 1.00, with a cumulative increase of/kloc-.

In order to seize the investment opportunity of the gold bull market, investors can already invest in the gold market in the simplest and fastest way through our electronic trading system.

Basic advantages of investing in spot gold

"Gold and silver are naturally not money, and money is naturally gold and silver." Marx's famous saying highlights the role of precious metals represented by gold in maintaining and increasing value. Historical experience also shows that gold is an investment product that "rises with inflation" in an inflationary environment. Compared with other investment products, gold financial management is increasingly sought after by investors because of its unique charm. Investing in spot gold has eight basic advantages:

First, gold has a long-term function of maintaining value, which can resist currency changes and price increases caused by inflation.

Second: any regional stock market may be manipulated, but gold is a global market, with transparent information and no manipulation, which can provide great protection for small and medium investors.

Third, gold has a strong liquidity, so there is no need for buyers to take over in any region, so it is convenient to buy and sell, and there is no need to worry about the funds being locked up. The price of gold fluctuates greatly, and it is quoted according to the international gold market and international practice. Due to various international political and economic factors, as well as the impact of various emergencies, the price of gold is often in violent fluctuations, so we can use this price difference to make a firm gold sale.

Fourth: stocks can only be profitable by buying at a low level and selling at a high level. Gold trading has a short-selling mechanism and can be invested in both directions. If the market reverses after multiple orders enter the market, you can make money by closing multiple orders, shorting backhand and going up and down.

Fifth, gold is traded by margin, and the trading threshold is lowered by using the principle of "leverage". Compared with other investment methods such as stocks, the amount needed to invest in gold is small, and the profit margin is magnified several times. Compared with foreign exchange futures, gold is single in variety, simple in analysis and easy to master. For example, the standard of 1 lot gold is 100 ounces * The current price is about 800 dollars, and the total contract value is 80,000 dollars. Investors can buy and sell 1 lot contracts with only 1000 dollars.

Sixth, the investment cost of gold does not need to pay any form of tax except for the lower handling fee, and it is one of the investment projects with the lightest tax burden.

Seventh: 24-hour all-weather trading is convenient for office workers to trade at night, and the most active trading time is precisely at night, and the trading time is very flexible.

Eighth: From the K-line chart, gold has entered the second big bull market, and now it is a good time for gold financial management. Go to whichever market is good, and don't step on the mines at the top of the market. If you expect safe and profitable investment, then gold trading is your ideal choice.

Factors affecting the price of gold

Most of the changes in the price of gold are influenced by the relationship between supply and demand of gold itself. Therefore, as an investor with his own investment principles, he should know as much as possible about any factors that affect the supply of gold, so as to further understand the dynamics of other investors in the market and predict the trend of gold prices in order to achieve the purpose of reasonable investment. The main factors include the following aspects:

(1) dollar trend

Although the dollar is not as stable as gold, it is much more liquid than gold. Therefore, the dollar is considered as the first kind of money, and gold is the second kind. When the international political situation is tense and uncertain, people will buy gold because they expect the price of gold to rise. But the currency that most people keep in their hands is actually dollars. If the country needs to buy weapons or other supplies from other countries during the war, it will also sell the gold in its hands in exchange for dollars. Therefore, the dollar may not rise during the period of political instability, but also depends on the trend of the dollar. Simply put, the dollar is strong and gold is weak; Gold is strong and the dollar is weak.

Trend chart of US dollar index in recent two years

Usually, investors will give up dollars when they take gold, and gold will be given up when they take dollars. Although gold itself is not legal tender, it still has its value and will not depreciate into scrap iron. If the dollar is strong and there is a great chance of appreciation, people will naturally chase the dollar. On the contrary, when the dollar is weaker in the foreign exchange market, the price of gold will be stronger.

(2) the period of war and political turmoil

During the period of war and political turmoil, economic development will be greatly restricted. Any local currency may depreciate due to inflation. At this time, the importance of gold is fully displayed. Because gold has recognized characteristics and is an internationally recognized trading medium, at this moment, people will invest in gold. The rush to buy gold will inevitably lead to an increase in the price of gold.

But there are also other factors * * * the same constraints. For example, from 1989 to 1992, there were many political turmoil and sporadic wars in the world, but the price of gold did not rise. The reason is that everyone held dollars at that time and gave up gold. Therefore, investors should not mechanically use war factors to predict the price of gold, but also consider other factors such as the US dollar.

(3) the world financial crisis

If a world-class bank fails, how will the price of gold react?

In fact, this situation is due to the emergence of the crisis. People will naturally keep money in their own hands, and banks will have a large number of runs or bankruptcies. The situation is just like the recent economic crisis in Argentina. People all over the country have to exchange US dollars from banks, but the country banned the exchange of US dollars in order to reserve the last investment opportunity, which led to constant riots and the whole country fell into panic.

When the financial system of the United States and other western powers is unstable, world funds will be invested in gold, and the demand for gold will increase, and the price of gold will rise. At this time, gold played the role of a fund refuge. Only when the financial system is stable, investors' confidence in gold will be greatly reduced, and selling gold will cause the price of gold to fall.

4) Inflation

We know that the purchasing power of a country's currency is determined based on the price index. When the price of a country is stable, the purchasing power of its currency is more stable. On the contrary, the higher the currency rate, the weaker the purchasing power of the currency, and the less attractive it is. If the price index in the United States and major regions of the world remains stable, holding cash will not depreciate and there will be interest income, which will inevitably become the first choice for investors.

On the contrary, if inflation rises sharply, holding cash is not guaranteed at all, and collecting interest can't keep up with the sharp rise in prices. People will buy gold, because the theoretical price of gold will rise with inflation. The higher the inflation of major western countries, the greater the demand for gold as a hedge, and the higher the world gold price will be. Among them, the inflation rate in the United States is the easiest to influence the change of gold. In some smaller countries, such as Chile and Uruguay, the annual inflation rate can reach up to 400 times, but it has no impact on the price of gold.

(5) Oil price

Gold itself is a hedge under inflation, which is inseparable from inflation in the United States. Rising oil prices mean that inflation will follow, and so will gold prices.

(6) Local interest rate

Investing in gold will not earn interest, and the profit of its investment depends entirely on the price increase. When the interest rate is low, investment in gold will have certain benefits; However, when the interest rate rises, it will be more attractive to collect interest, and the investment value of interest-free gold will decline. Since the opportunity cost of gold investment is large, it is better to collect interest in the bank than to be more stable and reliable. Especially when the interest rate in the United States rises, the dollar will be absorbed in large quantities, and the price of gold will be frustrated.

Interest rate is closely related to gold. If the domestic interest rate is high, it is necessary to consider whether it is worthwhile to lose interest income to buy gold.

(7) Economic situation

Prosperous economy and carefree life will naturally enhance people's desire to invest, and the ability of people to buy gold for preservation or decoration will be greatly increased, and the price of gold will also be supported to some extent. On the contrary, people are in poverty, and during the economic depression, people can't even meet the basic guarantee of eating and dressing, so where can they be interested in investing in gold? The price of gold is bound to fall. The economic situation is also a factor that constitutes the fluctuation of gold price.

(8) Gold supply and demand relationship

Gold price is based on the relationship between supply and demand. If the output of gold increases significantly, the price of gold will be affected and fall back. However, if the output stops increasing due to the long-term strike of miners, the price of gold will appreciate when demand exceeds supply. In addition, the application of new gold mining technology and the discovery of new mines have increased the supply of gold, which will of course cause the price of gold to fall. There may also be a habit of investing in gold in a place, such as the gold investment boom in Japan, which needs to be greatly increased, and it also leads to rising prices.

There are many aspects in the basic analysis of gold trend. When we use these factors, we should consider how strong their respective functions are. Find the primary and secondary position and influence time period of each factor to make the best investment decision.

How to calculate profit and loss

Formula for calculating profit and loss:

[(selling price–buying price) x contract unit x number of lots] minus (+/-) interest = profit/loss.

For example, Mr. Li bought five contracts to open positions at the price of 8 10 USD/oz (note: the commission was deducted when opening positions), and then Mr. Li rose to the price of 825 USD/oz on the day of gold price.

Mr. Li's profit and loss calculation: [(US$ 825–US$ 8 10) X 100 X 5] = US$ 7,500 (profit).

Similarly, shorting also makes money. Miss Liu sold five contracts at the price of 845 dollars/ounce of gold to open a position (note: the commission was deducted when opening a position), and then Miss Liu fell to 820 dollars/ounce on the day of gold price to close her position.

Miss Liu's profit and loss calculation: [(USD 845–USD 820) X 100 X 5] = USD 12500 (profit).

(Note: The above trading examples are for reference only and vary with different prices.)

Calculation formula of daily interest income and expenditure:

(closing price x contract unit) X (+/-) annual interest rate/days = interest income/interest expense.

(Note: interest is charged for selling gold, and interest is paid for buying gold)

Examples of interest income and expenditure: five lots of spot gold contracts against the US dollar were sold in the transaction, and the positions were closed after 1 month 1 month 3 1 month, with an annual interest rate of 4.0%.

Interest income calculation: (USD 810x100) x 4.0% x 5/30 = USD 540 (interest income).

(Note: The above examples of interest are for reference only and vary with different prices and interest rates. Lijiaan Company regularly charges customers 10 USD/hand/day and pays customers $5 USD/hand/day).

Risk control of gold investment

(A) the risk characteristics of the gold investment market

A. the extensiveness of investment risks

In the gold investment market, investment research, market analysis, investment scheme, investment decision-making, risk control, fund management, account security, risks caused by irresistible factors, etc., almost exist in all aspects of gold investment, so it is extensive.

B. Objectivity of investment risks

The objectivity of investment risk will not disappear because of the subjective will of investors. Investment risk is formed by uncertain factors, and these uncertain factors exist objectively. Individual investors do not control all investment links, let alone predict the future changes of factors affecting gold prices, so investment exists objectively.

C. Impact of investment risks

You must be aware of investment risks when entering the investment market. Because in the investment market, income and risk always coexist. But most people first consider risk from a negative perspective, and even think that there will be losses if there is risk. It is precisely because of the negative and uncertain factors of risk that many people dare not face up to it and cannot look at and face the investment market objectively, so they hold back.

D. Relativity and variability of investment risks

The risk of gold investment is relative to the investment varieties chosen by investors, and the results of investing in spot gold and London gold trading are completely different. The former has low risk, but low income; The latter is risky, but the benefits are high. Therefore, risks cannot be generalized and have strong relativity. At the same time, the variability of investment risk is also very strong. As the factors that affect the price of gold change, it will affect the investors' funds, and there may be repeated changes in profits and losses. Investment risk will increase and decrease according to the profit and loss of customer funds, but this risk will not disappear completely.

E. the investment risk is predictable.

The fluctuation of gold price is influenced by other factors, such as the trend of crude oil and US dollar, the change of geopolitical factors and so on, which will all affect the fluctuation of gold price. The analysis of these factors is predictable for the operation of gold investment. Objective and rational analysis will provide some guidance for investment operation.

(B) the necessity of risk management

If there is no awareness of risk management in the investment market, there will be a crisis of funds and a loss of profit opportunities. Mainly reflected in the following aspects.

I can reduce the risk rate of investment.

Using risk management can allocate funds reasonably and effectively, minimize losses, minimize risks and create more profit opportunities. So as to reduce the investment risk.

ⅱ helps to maintain a good investment mentality.

This is very important. In the process of capital operation, it is inevitable that capital losses will be caused by mistakes. If the risk can be controlled reasonably, it will help to maintain a good investment mentality when losses occur, reduce blind operation in emotional panic and reduce the possibility of continuous losses.

(C) the implementation of risk management

I order reasonable operation plans and schemes according to the financial situation.

Before the operation, the proportion of capital operation should be reasonably customized according to the amount of capital, leaving room and opportunities for the losses caused by wrong operation.

Ⅱ. Customize the appropriate operation style according to the time conditions.

Each investor has different operating time. If you have enough time to watch the market and have a certain technical analysis skills, you can get more profit opportunities through short-term operation; If you only have a little time to pay attention to the disk, it is not suitable for short-term operation. It is necessary to carefully find a more reliable and long-term intervention point to hold, and then go out and cash out when the accumulated profit is large.

Iii. Establish a good investment mentality

You must have a good attitude when you do anything, and investment is no exception. When the mentality is calm, the thinking is often clear, and only when we can objectively look at and analyze the market fluctuations can we operate rationally.

Ⅳ Establish operational discipline and strictly implement it.

The market is changing all the time, and the ups and downs of the market will make investors feel lucky and greedy. If there is no operational discipline, the book profit and loss can only fluctuate with the changes of the market, and there will be no actual results without timely settlement. The initial profit may also turn into a loss, which will lead to the disorder of operating mentality, affect the objective and ideal analytical thinking, and finally retreat step by step. Therefore, it is very important to formulate operational discipline and strictly implement it.

Several common psychological misunderstandings of gold investors

Maintaining a healthy investment psychology is the key for investors to win in the investment market. Maintaining a healthy investment psychology is a necessary condition for investors to get a correct understanding and practice of the market. Good psychological quality can enable investors to play a stronger thinking ability and higher efficiency, make timely, objective and accurate analysis and judgment on the changes in fundamentals and technologies, formulate more scientific and reasonable operation strategies and strictly implement them. Otherwise, the loss of book amount caused by market reversal will cause strong interference and damage to investors' analytical thinking and operation, which will make investors' thinking and feeling narrow and inflexible and at a loss, making it difficult to maintain a rational and objective attitude to adapt to the ever-changing market conditions, leading to repeated mistakes in judgment and chaotic pace of operation.

All investment processes can be divided into three links: cognitive market, analysis market and actual operation. The specific investment process is a process from recognition to analysis to practice, and then from practice to learning, which is repeated and constantly improved. In the process of entering the investment market, investors will generally make mistakes due to their thinking and mentality. They must go through the following stages, which can also be said to be the process of investor growth:

The first stage is the painful period. Investors often rush into the market without full understanding of the market and analytical ability, that is, they jump over the understanding link and directly enter the practice link, which is very dangerous. Many new investors make continuous mistakes in this stage, resulting in large losses in their books and are saddened. But unfortunately, such a situation is usually unavoidable.

In the second stage of study, after the first stage, investors realized the importance of analysis through the process of repeated failures and repeated wars, temporarily slowed down or stopped the operation, and began to strengthen their knowledge, trying to improve their analytical ability through books, consulting and other channels in order to change the situation of frequent losses in the past.

In the third stage of confusion, when investors go through the learning stage, they are full of confidence and think that they can criticize the situation and show their hands and feet in the market with analytical ability. At this time, investors will certainly get some gains by copying and using what they have just learned, but their deliberate obsession with theoretical knowledge will make investors lose their instinct to be flexible. Once a mistake is made, nine people will die, and there will be a situation of small wins and big losses, and the result often ends in failure. There are still losses after studying, which makes investors very confused and at a loss.

In the fourth stage, after learning, I still lose money, so I begin to doubt the market or feel that the investment market environment is not suitable for me. But unwilling to leave the market at a loss, I decided to make a final attempt to verify my doubts.

In the fifth stage of maturity, there will only be two results for investors after the choice period. One is to completely lose confidence in the market and give up completely; The other, after experiencing all kinds of tempering, felt the inherent laws and tracks of the market, the operation situation gradually improved, and confidence continued to increase. Can effectively apply theoretical analysis to practice, continue to ponder in practice, thus forming their own perfect investment philosophy and operating mentality. Entering the mature stage, the rate of return on investment is also increasing.

Investors will have all kinds of psychological misunderstandings in the actual operation process, which will lead to operational mistakes and serious losses of account funds. Therefore, it is very important to understand and overcome the morbid psychological misunderstanding of investment. Here we analyze several common psychological misunderstandings.

(1) blindly follow suit

The gold market is influenced by many complicated factors, among which the investors' psychology of following the trend has a great influence on the market. Investors with this mentality are afraid of falling behind when they see others buying or selling in succession, so they also buy or sell in a hurry. This is what we usually call "chasing up and killing down". Under the influence of the psychology of following the trend, once some unexpected events, such as terrorist attacks, occur, the gold price will be unbalanced under the group's follow-up operation, which will lead to drastic price fluctuations, which will often be taken in by those people with bad intentions who make waves in the gold market and will often be swallowed up by these people and regret it. Therefore, investors should establish their own awareness of buying and selling gold, and cannot follow the will of others.

② indecisive

Investors with this kind of investment psychology have made plans and considered investment strategies before buying and selling gold, but when they enter the gold market under the influence of others' "herd mentality", they often can't form a good investment portfolio, and they can't implement their own investment plan when there is a sign of trouble.

For example, investors have found that the price of gold in their hands is on the high side beforehand, which is the opportunity to throw out a certain currency and also make a decision to sell gold. However, on the spot, when I heard comments from others that were different from my own, my decision to sell gold changed immediately, thus giving up a good opportunity to sell gold. Or, investors have seen in advance that the price of gold is low and it is suitable for buying, and made an investment decision to absorb it while it is low. Similarly, on the spot, I saw people who sold gold huddled together and sold gold in succession. Seeing this scene, he chickened out and gave up the decision to enter the market, thus losing a good opportunity to make a fortune.

In another case, there is no intention to enter the gold market beforehand. When many people enter the market one after another, they feel itchy and can't stand the temptation of this atmosphere, thus making irrational investment decisions. From this point of view, the indecisive psychology is mainly at the critical moment, unable to make a judgment and missing the opportunity.

③ Desire is endless.

It is natural for investors to get investment income, but they should not be too greedy. Sometimes, the failure of investors is caused by excessive greed. Everything is good, not budging. Such greedy speculators are not uncommon in the gold market. They don't want to control, and they can't control their greed. Whenever the price of gold rises, I always refuse to throw out the gold in my hand decisively, and always encourage myself in my heart: I must persist until the last moment of victory and don't give up more profit opportunities! This often gives up an opportunity to sell gold. Whenever the price of gold falls, they are reluctant to buy it, always expecting the price of gold to fall and then fall. Although these investors have different forms of expression compared with investors chasing up and down, they have one thing in common, that is, they cannot grasp themselves. This endless desire, on the contrary, will make the profit fact that has already been obtained come to nothing at once. They only think of high returns in high risks, but seldom think of high risks in high returns.

Therefore, there is the following adage: bears and bulls can make money, but only greed can't make money. Therefore, I advise you not to be greedy, not to always envy the luck of others, but to believe in analysis, your own judgment on the economic situation and the general trend and act decisively. There is also a famous saying in the American foreign exchange market: both bulls and bears can make a fortune in the Wall Street stock market, except the insatiable.

④ treat the financial market as a casino.

Gold market investors with gambling psychology always hope to make a fortune once. They can't wait to seize an opportunity, so that they can make a lot of money. Once they make a profit from investing in the gold market, most of them will be carried away by victory, and like gambler, they can't wait to bet their lives on the gold market until they lose everything. When the gold market loses, they often invest all their money in gold at the expense of last stand, and most of these people end up bankrupt.

Therefore, the market is not a casino, so don't get angry and lose your head. You should analyze the risks and establish an investment plan. In particular, people who are angry must first establish the proportion of investment funds when buying or selling a certain currency.

⑤ He who hesitates will miss the fighter plane.

Some investors have made investment plans and strategies in advance, but when they step into the real gold market, they are influenced by the external environment. For example, he decided to buy gold immediately when the price of gold continued to fall, but when he saw the market, everyone was selling, and his hand to buy gold shrank back. Some people have no plans to buy gold at all, but when people snap up, they can't resist the temptation.

Others have been waiting for cheaper and more substantial gold, and seem to think that all the gold at present (even when the general trend is rising) is not worth buying. It should be cheaper to enter the market. As a result, the higher the equivalence, the more afraid to enter the market. As a result, the price of gold has doubled, but he waited for the whole process in vain.

Misanalyzing the situation and missing the opportunity to buy and sell are closely related. It is precisely because of the wrong estimation of the situation that investors often miss the opportunity. Changes in the political and economic situation often have an impact on the gold market. Therefore, when investing in the gold market, we should not only pay attention to the dynamics of the gold market, but also pay close attention to the local and international political and economic situation. Combine the estimation of the situation with the technical analysis of the gold price trend. Only in this way can we capture the buying or selling signals in time. Make practical actions when buying and selling.

⑥ Dare to lose and dare not win.

Remember, to enter the gold market, you should first be confident. Many investors buy gold, rise for a period of time after buying it, and can't wait to sell it for profit. They believe that it is only safe to put money in their pockets. But they ignored the reasonable value of gold.

Generally speaking, the market price of gold may not fully reflect the true value of gold. Therefore, after some investors sell gold, the price of gold continues to rise. Moreover, it is often shown that the price increase after selling is greater than that before selling. According to general international practice, it will rise several times. Therefore, we can't accept what is good, sell it when it rises, and make a decision on selling based on the price-earnings ratio. However, some gold has risen excessively, and once it is bought, the currency price will definitely fall. It is strange that most investors will stick to it in this situation.

Many people invest in gold, often earning very little, but losing a lot. One of the important reasons is that the psychology of not winning is at work.

All landowners unnecessary panic.

Some gold investors lose confidence in the future of the gold market because of certain environmental factors and gossip, and feel panic, so they desperately sell their gold. Many experiences in the gold market show that unnecessary panic is often a false alarm. However, under normal circumstances, many selling winds are often deliberately set off by some large households or others. He released bad news, causing the sell-off in order to depress the price of gold and then take the opportunity to buy it, or cash out to transfer funds. Ordinary investors, if they have unnecessary panic and throw out a lot of gold in their hands, will certainly suffer losses.

Therefore, as an investor, we should keep calm in the face of unfavorable news and carefully analyze the reliability of the news. If the Shang Ruo certificate is clear. It also depends on whether the impact of this news is permanent or temporary. If it is the latter, there is no need to throw out the gold in your hand.

8 Indifference.

After some investors buy gold, they ignore it and let it develop naturally. Sometimes they even entrust their relatives and friends or brokers to manipulate them, and they rarely intervene. This practice can still make some money when the gold market is in a general trend. If it is in a downward trend, it will inevitably be wiped out.

Therefore, as long as you buy gold, you are a member of a certain gold market, and you should always pay attention to the dynamics of the gold market. Care about your own gold, don't trust your relatives and friends or brokers too much, but trust yourself, have your own judgment and your own entrustment requirements.

Pet-name ruby dare not lose.

In the competitive and risky gold market, there are neither generals who always win nor soldiers who often lose. The key is to adopt a flexible strategy with the changes in the gold market. When the general trend of the gold market falls, don't be entangled in losses, but make a decisive decision and give up what one favours. Some investors always have the psychology of "dare not lose". When the price of gold rises, they earn the difference and are in high spirits. Once the price of gold falls, I always hope that it will rise soon, without analyzing the general trend of gold at all, and some take it for granted. In fact, this is just self-deception. In the end, I still suffer.