The pros of trading oil and gold together | Metals Mine

  • The pros of trading oil and gold together

    From born2invest.com

    Depending on who you ask, gold and oil are the two most traded commodities in the markets. The debate isn’t over how important they are, but rather about whether gold is a currency or a commodity. Either way, both are very popular trading vehicles. And both have unique characteristics that make them not only profitable on their own, but in combination. Not for nothing, oil is sometimes colloquially known as “black gold”. And interestingly, that’s not all that bad of a metaphor to describe the unique relationship between these two special assets. The basics Gold’s primary trait is its use as a store of value. It’s been ... (full story)

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swagtrading
Jul 15, 2019 8:44pm
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Quoting bulltrap
The article asks if Gold is a currency or commodity? It is definitely a commodity over a currency. It has not been used to purchase things in any significant capacity for a long time and its final nail in the coffin was in 1971. Gold is a store of value just like any precious metal, if gold were a currency then Platinum must be as well.
I think Gold is firmly a commodity, however when it rallies, people often say its a currency. When the notion that "Gold is a currency" is at its highest, invariably you'll see Gold making a top.
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bulltrap
Jul 15, 2019 6:15pm
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The article asks if Gold is a currency or commodity?

It is definitely a commodity over a currency. It has not been used to purchase things in any significant capacity for a long time and its final nail in the coffin was in 1971. Gold is a store of value just like any precious metal, if gold were a currency then Platinum must be as well.
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