Gold as a Commodity: Futures & Options
Perhaps no other market in the
world has the universal appeal of the gold market. For centuries,
gold has been coveted and traded for its unique
blend of rarity, beauty, and near indestructibility.
Nations
have embraced gold as a store of wealth and a medium of international
exchange; individuals have sought to possess gold as insurance
against the day-to-day uncertainties of paper money. COMEX
Division gold futures and options provide an important alternative
to
traditional
means of investing in gold such as bullion, coins, and mining
stocks.
The United States first assigned a formal monetary role
for gold in
1792, when Congress put the nation's currency on a bimetallic
standard, backing it with gold and silver. During the Great Depression
of
the 1930s, most nations were forced to severe their currency
from gold in an attempt to stabilize their economies.
Gold formally
reentered the world's monetary system in 1944, when the
Bretton Woods agreement fixed all the world's paper currencies in
relation to the U.S. dollar which in turn was tied to gold. The
agreement
was in force until 1971, when President Nixon effectively
cancelled
it by ending the convertibility of the dollar into gold.
Gold Trading Today
Today,
gold prices float freely in accordance with supply and
demand, responding quickly to political and economic events. A
broad cross-section
of companies in the gold industry, from mining companies
to fabricators of finished products, can use the COMEX Division
gold
futures
and options contracts to hedge their price risk. Furthermore,
gold
has traditionally had a role in investment strategies,
and gold futures and options can be found in investors' portfolios.
More Information on Gold Trading
Gold Futures | Gold
Options | Free Gold Report
Edge Financial Group is registered and licensed as
an Introducing Broker with the Commodity Futures Trading Commission,
the federal regulatory agency of futures and options. We are also
a member of the National Futures Association, a self-regulatory agency
working with the Commodities Futures Trading Commission. Our frim is fully licensed.
Please call to speak with an account executive:
1.866.986.EDGE
Click On Any Scrolling Commodity For A Quote
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