“What is gold futures” in context: a contract that allows bets on gold’s future price movements. The past session’s rally to $2,318/oz coincided with a dip in the Nasdaq, showing how money shifts between equities and safe havens in times of tech-sector volatility. This is just not an anecdotal observation. It's backed up by more than 10 years of data. Since 2013, Bitcoin has increased in value by 20% in October, 46% in November, and another 5% in December. “Investing in gold is as easy as investing in a stock when you invest via ETFs, however investing via physically buying gold from a Costco — or other retailer — comes with some complications. Trading gold bars via the physical gold dealers in your local town can greatly exceed the trading costs of a gold ETF and detract meaningfully from any price performance. For many investors, investing via an ETF is more efficient, less expensive and offers more liquidity. Gold ETFs typically hold the gold at a custodial bank with secure vaults, which are audited on a regular basis. Gold is of course subject to both price increases and decreases potentially resulting in both gains and losses. “What is gold futures” is a question tied directly to risk management. Recent CFTC reports show managed money net longs in gold futures climbed to a 4-month high. Such positioning reflects expectations of persistent inflation, which historically boosts precious metals and related equities.
