Risks of Gold Derivatives
Gold derivatives like futures and options contracts are complex and carry hidden leverage. Investing in these financial instruments is a speculation on price movements, not an investment in gold itself. Risks include leverage, volatility, and counterparty defaults.
Real Gold vs. Paper Gold
Gold is not a paper credit or a contract for future settlement. It is a tangible asset. Paper credits and financial contracts, including ETFs, are ultimately short positions on physical gold.
