Expert's golden tips
HERE are some tips from Mr Simon Teo (above), strategist and private-client service manager at Phillip Futures.
SPECULATE OR INVEST?
If you like to take advantage of the fast-moving prices of gold, then gold futures would be a suitable mechanism.
For a longer-term investment, spot gold is recommended because it has no expiry.
UNDERSTAND MARGIN TRADING
While only a deposit is required to start speculating in gold futures, which can free up funds for other investments, the liabilities can be high.
Speculators should keep in mind the notional, or actual value, of a contract.
KNOW WHAT AFFECTS GOLD PRICES
Keep a close watch on the strength of the US dollar, which is affected by the Fed's quantitative-easing measures, fiscal policies like the debt ceiling, and interest rates.