Precious metals investment is divided into physical investment and electronic transaction investment. Among them, physical investment refers to the process that investors earn the difference by buying low and selling high when they are optimistic about the precious metal market. It can also be a means to avoid risks when the economic outlook is not optimistic, and realize the preservation and appreciation of assets.
Electronic trading refers to the decision to buy or sell precious metals such as gold and silver according to market price fluctuations. This kind of transaction generally has leverage, which can make a big return at a small cost.
With the aggravation of the threat of inflation, the turmoil of the global economic situation and the outbreak of the world financial crisis, the demand of precious metals investment, which has the function of hedging, has shown an explosive growth trend. Precious metals, because of their high liquidity and value preservation, can resist currency changes and price increases caused by inflation.
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Precious metals investment policies and regulations:
The Regular Precious Metals Trading Center pointed out that since the State Council issued Document No.38 to rectify the trading market earlier, the central bank and other five ministries and commissions jointly issued a document prohibiting any institution or individual except Shanghai Gold Exchange and Shanghai Futures Exchange from setting up a gold exchange or gold trading platform.
According to relevant documents, the State Council issued document No.38 "Decision of the State Council on Cleaning up and Rectifying Various Trading Places and Effectively Preventing Financial Risks" on 201/KLOC-0. Circular No.38 pointed out that in addition to the establishment of a trading place for futures trading with the approval of the futures regulatory authority in the State Council or the State Council according to law,
No unit may conduct standardized contract transactions by centralized bidding, electronic matching, anonymous trading, market makers and other centralized trading methods. Trading places engaged in the trading of financial products such as insurance, credit and gold must be approved by the relevant financial management departments of the State Council.
At present, precious metals investment is dominated by spot silver and some physical gold that can be traded on trading platforms, and there are many illegal platforms, such as Loco London Gold and London Silver, which are quoted in US dollars. Over the years, there have been many fraud cases, which require investors to be cautious.
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