Example of a trade transaction in the metal market
Precious metals, especially gold, are traditionally considered as safe-haven assets, high-demanded by investors during periods of increasing uncertainty in the financial markets due to the growing geopolitical tensions in the world or the threat of a global economic crisis, which provokes capital flight from risks. The last global financial crisis of 2008 was not an exception, having acted as one of the main reasons for the most significant growth of gold prices throughout history, which set its price record on September 6, 2011 at a mark over $ 1920 per ounce. In the period from the middle of autumn of 2008 to the beginning of the autumn of 2011 you could earn $ 120,000, having invested initially $ 70,000. Having bought one futures contract (100 troy ounces) for gold at the price of $ 700 / oz t in October 2008 and having sold it in 35 months in September 2011 at a price of $ 1900 / oz t, you could earn 120,000 points of profit, what equals to $ 120,000.