Trading Gold?

[Johnkitty]

Like no other metal on earth, gold has captured the imaginations and emotions of humans across centuries. From jewelry and sculpture, to a store of wealth and symbol of status few other elements could claim the mantle of historic importance like gold can. Traded on many exchanges with both cash and futures contracts, our lesson will focus on the COMEX futures contract traded in New York.

Contract Size: 100 troy ounces.

Price Quote & Tick Size: Dollars and cents per ounce; minimum tick size is ten cents per ounce or $10.00 per contract.

Contract Months: All months.

Trading Specs: Trades electronically on the InterContinental Exchange 2:30 am - 2:45 pm ET. Options floor trading hours are 0800 to 1300 ET.

Daily Price Limit: As of date of initial publishing, there were no daily limits; however, it is wise to consult exchange.
All things about Metals Prices...

 

[markettips1]

In this context, if the going cost of gold is Rs 6000 per 10 grams, with an investment of Rs 6 lakh, one can buy 1kg of gold. Now, suppose, three months hence, when the going price of gold is Rs 6,500 per 10 grams, the person decides to sell the gold. The gross profit made by the person is Rs 500 for every 10 grams and hence, for 1 kg, it stands at Rs 50,000. To arrive at the net profit, one would have to deduct the cost of financing; the cost of storage in a bank and transaction costs, including sales taxes.