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Fun facts about Commodities
Physical means owning bars or coins (requires storage). Paper gold (Futures, ETFs) involves trading price movements without handling the metal, offering higher liquidity and lower fees.
Gold futures are exchange-traded contracts where the buyer agrees to take delivery of gold, and the seller agrees to deliver gold, at a predetermined future price and date.
Gold acts as a hedge against currency devaluation and inflation. It provides portfolio stability during market downturns and geopolitical uncertainties.
Key risks include market price volatility, storage and insurance costs for physical gold, and the lack of dividend or interest income compared to other investments.
Prices are primarily moved by global demand, central bank activities, US dollar fluctuations, and shifts in international economic stability.