Trade Bullion: A New Choice For Gold Bullion & Gold Commodity Trading

29th October, 2009

Up until recently the opportunity to trade Bullion was relatively limited. Traders and investors that had a view on the Gold market and wanted exposure to the underlying movements in the gold price had to consider futures. Futures are the highly leveraged alternative for gold commodity trading because you are required to post margin upfront. Margin requirements are set by the exchange and are altered periodically according to the prevailing market volatility. This is fine for some participants but for some investors it acted as a barrier to entry because you need to have an approved futures account and must watch the position constantly in order to manage your exposure. As such, the gold futures market tends to be frequented by the larger market participants and highly sophisticated private players who can watch and manage the position accordingly.

New Developments For Bullion Gold Trading

For the retail operator, small private investor or even sophisticated larger volume traders a new financial innovation to trade bullion has emerged. It is not as highly leveraged as futures which suites some traders and investors much better. This gold market trading mechanism permits you to trade gold bullion online but you take an immediate allocation of gold. The gold remains within the vaulting circuit under your entitlement. You pay a storage fee for the privilege but you are fully insured and protected from operator risk and systemic risk under “bailment” laws. So you get the best of both worlds. You can purchase gold bullion online with the intention to hold for either long or short periods of time. There is no margin involved so your position is exposed to gold price movements but not leveraged the same way a futures position would be.

Why Purchase Gold Bullion Online?

If you choose to make a bullion gold purchase online then you have immediate access to your account once it is set up. You can trade bullion 24/7 and have the choice of using different currencies, namely the UK Pound, US Dollar and the Euro. Currency flexibility is important to some people who may be located in a foreign country. Furthermore, you also have a choice of vaulting locations. You can choose from London, New York or Zurich. Each location is protected by a different jurisdiction so you have full control over where your gold is stored and can switch between vaulting locations at the click of a button. If you decide that you want to remove the gold from storage and take physical possession this can be arranged but you need to keep in mind that once it leaves the vaulting circuit you will need to subject the gold to quality and purity tests before it can be resold.

Tools For The Gold Bullion Trader

If you plan to trade bullion then having access to quality tools can help you make a more informed decision. Charting capability, market depth and the market order board provide timely information for traders and investors to execute the transaction. The new online operators build this capability into the interface and the one click wizard style interface makes it a simple and effective way to trade. Sign Up above to claim your free gram of gold and to learn how simple and easy it is to trade gold 24/7.

More Articles on bullion gold trading and Gold Commodity Trading

An Overview on Gold Bullion Investing
Gold Storage Facilities: How to Safely Store Your Gold