Physical vs paper gold: understanding the price spread
From capital.com
When investing in gold, you often face a choice: physical gold or paper gold – owning bullion or trading through financial instruments such as CFDs. Below, we explore why the gold-price spread can be significantly high. There are two main ways to gain exposure to gold: owning the metal itself or investing in financial products that track its value. Before deciding which may suit you, clarify your motive: Are you aiming to speculate on short-term movements in the gold price? Are you looking to hedge risk, preserve purchasing power, diversify your portfolio, or protect assets during economic or political uncertainty? ...
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