Following the recent historic rise to more than $2,000 per troy ounce from an average price of around $1,500 before the Covid-19 outbreak, is gold now starting to lose its lustre?
As chief financial adviser at Golden FX Link Capital, I have received many inquiries from gold investors and gold wholesalers recently regarding the price of gold and how to use derivatives to safeguard purchases.
This is a valuable strategy to use to protect businesses during this period of economic uncertainty brought about by the coronavirus pandemic, with dealers being obliged to buy gold at record high prices only to see the value drop a day later.
With today’s price volatility, a wholesale gold buyer may need to wait days, weeks or even months to collect a profitable return on their purchase price, but with a proper derivatives position you can “lock in” your profit margin immediately and protect your business.
Many Cambodian gold dealers in the provinces are currently taking a big risk buying gold from customers because it can take a full day or more to exchange it with their suppliers in Phnom Penh.
The price can change considerably in that time, which possibly makes them prone to losing profitable opportunities.
Doing it this way is not at all convenient, and they may also have concerns about security.
Fortunately, an ideal solution is to be found in the derivatives market, which enables gold buyers, traders and investors to conveniently trade from anywhere and at any time.
Please contact Golden FX Link Capital to learn more about how you can protect your business by using the derivatives market as a “hedge” to insure the value of your asset purchases, as well as how you can seize golden opportunities to accumulate wealth.