Gold is a precious metal and an important financial commodity that can be traded in the spotfutures and options markets.

    Historically, gold is viewed as a safe haven during times of war, economic recession, currency devaluation and volatility in the markets.

    Gold is measured in troy ounces; one troy ounce weighs approximately 31.1 grams.

    Trading gold

    Gold is a popular option for traders and there are many different gold products that can be traded or invested in. Its popularity rests on the fact that it is mostly immune to inflation and does not carry the risk that flat currencies do regarding exchange rate and interest rate fluctuations.

    Common gold tangible securities are bullion (gold bars), South African Krugerrands and other gold coins.

    For traders preferring to invest in stocks, many mining companies are listed on the stock exchanges. It is also possible to invest in gold futures, including options, although these are far more volatile than the physical asset because they are derivatives of the underlying price of the gold.