Not exact matches
How are behaviors of
physically backed
gold and
gold miner exchange -
traded funds (ETF) similar and different?
Because of contracts, you can
trade on
gold prices without actually
physically owning the
gold.
In general, this means that although
gold or silver ETF shares may
trade on exchanges elsewhere, as long as the metal is held
physically in London, these would be considered loco London and form part of the LBMA's monthly statistics.
An important advantage to
trading in
gold futures is the fact that because they are
traded at centralized exchanges, futures contracts offer more financial leverage, flexibility, and financial integrity as opposed to
physically trading this precious metal.