- Is the Bitcoin (BTC) Futures Contract the New Gold? (7/15/2021) - Unless you’ve been living under a rock, you’re aware of the meteoric 2020-2021 rise of Bitcoin (BTC). In a little more than 12 months, BTC prices rallied from COVID-19 panic lows near $5,000 to early 2021 all-time highs just below $65,000. The spike in value was one of the biggest financial stories in recent history.
While the value of gold is a hotly debated topic, one thing is certain: gold is the most popular investment and trade option of all precious metals on the markets. Perhaps the most fundamental reason gold is so popular is because it is an ideal store of value assets. This implies that the value of gold is the exact same all over the world—after currency conversion.
Gold Contract Specifications
Gold is highly valued because of its beauty, strength, density and rarity. It is unaffected by air, heat, moisture and most solvents. Gold is an important industrial commodity as it can conduct both heat and electricity. Gold is commonly used in jewelry, electronics, and reflective glass. Gold is mined on every continent except for Antarctica. Virtually all gold that has been mined throughout history is still existence in the world today because of its indestructibility. The Unites States is a top producer of gold, behind China and Australia respectively. Nevada, Alaska and California are the top producing states.
From 1792-1971, the United States had a bimetallic standard, meaning that all paper currency was backed up with its face value in gold. This ensured that a physical asset of value existed in conjunction with American currency. The price of gold continues to remain a bull market in the current climate, with record high prices in the past few years.
Last updated May 2013.
Recent Posts on Gold
- Three Easy Ways to Buy Gold and Silver (2/1/2022) - Most New Year’s resolutions are doomed from the start. You create too lofty a goal that must be accomplished in 365 days and usually commit too intensely in the first 30 and fall too easily back into bad habits by day 100.
- Understanding Expiration And Futures Contracts Months (10/19/2021) - A futures contract is a legally binding, perishable security. Accordingly, each has a distinct expiration date on which the contract’s terms are settled. When the contract expires, it ceases to be tradable on the open market. The concept of expiration makes futures contracts finite instruments.