{"id":769698,"date":"2018-06-14T19:55:47","date_gmt":"2018-06-14T19:55:47","guid":{"rendered":"http:\/\/juniorminingnews.com\/?p=769698"},"modified":"2018-06-14T19:55:47","modified_gmt":"2018-06-14T19:55:47","slug":"what-are-gold-futures-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=769698","title":{"rendered":"What are Gold Futures?"},"content":{"rendered":"

By Amanda Kay<\/a><\/span> <\/p>\n

\"gold<\/a><\/div>\n

For investors looking to step into the gold space, there are a number of ways to invest in the yellow metal. One such way is through investing in gold futures, which is a common investing strategy among many commodities. <\/strong><\/p>\n

Putting it simply, futures can be defined<\/a> as a financial contract between an investor and a seller. The investor agrees to purchase an asset from the seller at an agreed-upon price on a date set in the future.<\/p>\n

In 1972, the Chicago Mercantile Exchange (CME) launched futures trading in seven currencies, but it wasn’t until 1974 that the first gold futures contract was traded on the COMEX exchange<\/a> New York. Since then, gold futures have continued to grow in popularity as an investment strategy within the sector.<\/p>\n

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10+ Gold Stocks to Watch<\/h2>\n

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Give me my free report! <\/a>\n<\/div>\n<\/div>\n

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Gold futures investing<\/h2>\n

Similarly, gold futures follows the same structure as mentioned above, although there’s a slightly more in-depth approach.<\/p>\n

Gold futures give investors the opportunity to trade gold without having to pay the full amount right away. An agreement is made between the two parties, including the price and weight of gold, and a delivery date\u2013set in the future\u2013is decided.<\/p>\n

In other words, gold futures can be described<\/a> as contract in which an individual agrees to take the gold at an agreed date by making an initial payment, with an agreement set in place to complete the payment.<\/p>\n

A Daniels Trading publication<\/a> notes that gold futures are offered in 100 ounces, 33.2 ounces and 10 ounces, and are an \u201calternative to bullion coins, mining stocks and leveraged bullion dealers.\u201d<\/p>\n

Where they are traded<\/h2>\n

In the US, gold futures can be traded at the New York Mercantile Exchange<\/a> (NYMEX) at a contract size of 100 troy ounces and are quoted in US dollars per ounce. For example<\/a>, $1 equals $100 per contract, with a minimum price fluctuation of 10 cents, which equals $10 per contract.<\/p>\n

Typically, NYMEX’s contact months include February, April, June, August, October and December, with trading closing on the third last business day<\/a> of the delivery month.<\/p>\n

Another one is the Tokyo Commodity Exchange (TOCOM), with a contract size of 1000 grams and quoted in yens per gram.<\/p>\n

As of July 10, 2017, London Metal Exchange (LME) launched<\/a> its gold and silver<\/a> futures trading. Since then it’s reported<\/a> high volumes of trading futures on the exchange.<\/p>\n

Rewards and risks<\/h2>\n

Like many things, there are rewards and risks to gold futures investing, however they may not necessarily apply to everyone. Still, it’s important for investors to use their own discretion when making a decision.<\/p>\n

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\n\"gold<\/a><\/div>\n
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10+ Gold Stocks to Watch<\/h2>\n

Stocks.
\nExpert Insights.
\nIndustry Stats.
<\/h4>\n

Give me my free report! <\/a>\n<\/div>\n<\/div>\n

\n<\/div>\n

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That being said, here are some tips for investors to keep in mind when considering gold futures.<\/p>\n

Rewards of gold futures investing<\/strong><\/p>\n