The difference between gold investment and bond futures investment
The differences between gold investment and bond futures investment are as follows:
1、 Gold and bonds
Bonds are debt certificates issued to investors when the government, financial institutions, industrial and commercial enterprises and other institutions directly borrow from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions.
Nowadays, in addition to certificate treasury bonds, electronic records are used. Even voucher treasury bonds are not bills, they can only be regarded as record cards, as shown in Figure 2-5.
The essence of bond is certificate, which proves the relationship between creditor's right and debt and has legal effect. The relationship between bond buyers and issuers is one of creditor's rights and debt. Bond issuers are debtors and bondholders are creditors.
With the nature of debt, it means that the risk of the bond is greatly reduced. As long as the debtor always exists, the bondholder can at least guarantee the safety of the principal. Because the price of gold is changeable, the security of principal is far less than that of bonds.
2、 Gold and Futures
There is gold futures in the futures market. The futures here is a comparative analysis between all futures markets and spot gold.
No matter how the gold price changes, its intrinsic value is relatively stable, and its high liquidity makes it have a strong value preservation and appreciation.
As mentioned earlier, gold is the most popular investment product in the period of inflation. The difference between gold and futures investment is not just the difference in risk.
1) Delivery method
Spot gold adopts the method of spot delivery, that is, one hand payment and one hand delivery. As long as the buyer and the seller reach an agreement, they can apply for delivery.
Futures is forward delivery, it has a specified delivery time, only after the delivery date has arrived.
2) Transaction time
Spot gold is a global 24-hour roulette trading, with one market ending and another market opening immediately; while futures trading, like stock trading, has a time limit. The main futures trading places in China are 9:00-11:30 a.m. and 13:30-15:00 p.m. on each trading day, of which 14:10-14:20 in Shanghai Futures Exchange is the half time, while Dalian Commodity Exchange and Zhengzhou Commodity Exchange do not rest and continue trading.
3) Transaction risk
Spot and futures trading risk is different, because it is 24-hour roulette trading, can close out at any time, and futures trading because of trading time constraints, when bad news occurs, investors can only wait until after the opening to operate.
4) Leverage income
Both spot and futures are leveraged transactions, but the leverage of spot is greater than that of futures. From this perspective, spot has certain advantages in trading time, which can immediately roulette and reduce certain risks. However, its leverage ratio is 100, while the leverage ratio of futures is about 10. From this point of view, the risks and benefits of futures and spot are equal It's proportional.
5) System risk
The systemic risk here mainly refers to the different environments faced by the trading market. The spot market is a global market, in which governments and large banking institutions are trading, with high information transparency and huge trading volume. It is almost impossible for the institutions to completely control the market; The futures market is generally the domestic market, because of the existence of leverage, and the government has some policy restrictions on it, insider information has become one of the important means of profit, then the makers came into being, control the trend, and the stock market has something in common.