Especially for gold may have been partially or had planned to invest in gold invest in gold, saw the potential returns by buying jewelry or gold bullion which will then be sold back when the price goes up. Did you know can do the same thing with oil? If you are thinking way is to hoard gasoline or go to the gas station as much as possible to carry jerry cans filled with gasoline and saved, that’s not what I meant.
Buy into the gas station and store, then sell when prices rise again. On the product of your gold is fine to do that, but you should not try to gasoline because there are legal risks and dealing with the police. So then how can I invest with an investment of oil just like gold?
The answer is that trading on the Commodity Exchange! If the investment by buying gold jewelery or gold bars, then you’ll be a physical hold jewelry or gold bullion, on the Commodity Exchange is a contract purchased and held. Confused? Let’s look at examples of more or less the same, that is when you take your money as much as Rp.10.000.000 the Bank, submit it to the cashier, then cashier will print into a passbook savings fund that you get 10 million dollars. What you hold as proof of ownership of 10 million dollars that you submit to the bank? Oh well, just a savings book and there you have that amount of money. What if the corresponding instance of it, then the money is replaced by gold, bank stock and replaced with the passbook was replaced with a contract? So when you buy with 311 grams of gold eg gold then you get is a contract rather than physical gold. This is the basic mechanism that is owned in Commodity contract trading.
Already know now about the trade contract? Let me explain further, the book contained the name and the amount of savings you money, you can sell books for $ 10 million savings in accordance with what is listed on the passbook? The answer, in fact not necessary, if you want it, just does it from the bank withdrawals. Well this is where the difference in trading contract, you can sell a contract you have to others. Further explanation of this will be you see at the School of Petroleum Gold & Commodities.
One important thing here is that there is a way for you to buy commodities such as gold and oil without the need to hold physical gold or the oil itself, but only a contract, you do not have to worry about storage, security, storage, or other things that related to the physical condition of the commodity purchased.