Gold futures are hedging tools for commercial producers and users of gold. They also provide global price discovery and opportunities for portfolio diversification. In addition, they:
Offer ongoing trading opportunities, since gold prices respond quickly to political and economic events
Serve as an alternative to investing in gold bullion, coins, and mining stocks
Things to know about the contracts:
Physically delivered
Block-trade eligible
American-style options
Can be traded off-exchange for clearing only through CME ClearPort
About Gold
Since ancient times gold has been coveted for its unique blend of rarity, beauty, and near indestructibility. Nations have embraced it as a store of wealth and a medium of international exchange, and individuals have sought to possess it as insurance against the day-to-day uncertainties of paper money.
Following the California gold discovery of 1848, North America became the world's major gold supplier. From 1850 to 1875, more gold was discovered here than in the previous 350 years. By 1890, the gold fields of Alaska and the Yukon were the principal sources of supply and, shortly afterwards, discoveries in the African Transvaal indicated deposits that exceeded even these. Today, the principal gold producing countries include South Africa, the United States, Australia, Canada, China, Indonesia, and Russia.
Gold is a vital industrial commodity. It is an excellent conductor of electricity, is extremely resistant to corrosion, and is one of the most chemically stable of the elements, making it critically important in electronics and other high-tech applications.
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