Gold has risen more than 10% this year. Is there any investment opportunity?

June 13, 2020

The channels for investors to participate in gold investment in the domestic market include purchasing physical gold bars, paper gold, ETF and participating in futures trading. In the view of experts, in the face of gold investment that has greatly outperformed other assets, finding the right investment method is the key to success.

“Buying physical gold is the most common way, and it’s easy to buy, but it’s not easy to store and redeem.” Wang Chao, an expert in the gold market, said that physical gold bars need to be kept by investors themselves. Once they need to be cashed in the later period, redemption also faces higher handling fees.

Comparatively speaking, the securitization investment is more convenient and becomes the choice of the younger generation of investors. “Paper gold and ETF funds do not need to hold gold on their own, and they can also gain gains from the rise of the gold market.” MS Han said that compared with the investment concept of the parents’ generation, most of the younger generation of investors are not interested in holding physical gold, and paper gold, ETF and even futures are more suitable ways to participate.

“The key to choosing the right investment method is to make clear the investment purpose.” Wang Chao, a gold market expert, pointed out that for short-term investment, buying physical gold is not necessarily the right way, and more volatile futures and other channels may be more suitable for selection, but the risk is also greater. To invest in gold, the role of gold should be further clarified. “It is one-sided to analyze and judge the role of gold only from the short-term trend, and gold is a kind of asset more suitable for long-term holding.”

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