While the value of gold is a hotly debated topic, one thing is certain: gold is the most popular investment and trade option of all precious metals on the markets. Perhaps the most fundamental reason gold is so popular is because it is an ideal store of value assets. This implies that the value of gold is the exact same all over the world—after currency conversion.
| Gold Contract Specifications | |
| Product Symbol | GC |
| Venue | CME Globex, CME ClearPort, Open Outcry (New York) |
| Trading Hours | CME Globex: Sun–Fri 5:00pm–4:15pm CT with a 45-minute break each day beginning at 4:15pm |
| CME ClearPort: Sun–Fri 5:00pm–4:15pm CT with a 45-minute break each day beginning at 4:15pm | |
| Open Outcry: Mon–Fri 7:20am-12:30pm CT | |
| Contract Size | 100 troy ounces |
| Price Quotation | U.S. Dollars and Cents per troy ounce |
| Minimum Fluctuation | $0.10 per troy ounce |
| Termination of Trading | Trading terminates on the third last business day of the delivery month. |
| Listed Contracts | Trading is conducted for delivery during the current calendar month; the next two calendar months; any February, April, August, and October falling within a 23-month period; and any June and December falling within a 72-month period beginning with the current month. |
| Settlement Procedure | Physical |
| Settlement Type | See Daily Gold Futures Settlement Procedures See Final Gold Futures Settlement Procedures |
| Delivery Period | Delivery may take place on any business day beginning on the first business day of the delivery month or any subsequent business day of the delivery month, but not later than the last business day of the current delivery month. |
| Trading at Settlement (TAS) | Trading at Settlement is allowed in the active contract month. The active contract months will be February, April, June, August and December. On any given date, TAS transactions will be allowed only in a single contract month. TAS transactions may be executed at the current day’s settlement price or at any valid price increment ten ticks higher or lower than the settlement price. |
| Grade and Quality Specifications | Gold delivered under this contract shall assay to a minimum of 995 fineness. |
| Exchange Rules | These contracts are listed with, and subject to, the rules and regulations of COMEX. |
| Source: CME | |
Gold Facts
Gold is highly valued because of its beauty, strength, density and rarity. It is unaffected by air, heat, moisture and most solvents. Gold is an important industrial commodity as it can conduct both heat and electricity. Gold is commonly used in jewelry, electronics, and reflective glass. Gold is mined on every continent except for Antarctica. Virtually all gold that has been mined throughout history is still existence in the world today because of its indestructibility. The Unites States is a top producer of gold, behind China and Australia respectively. Nevada, Alaska and California are the top producing states.
From 1792-1971, the United States had a bimetallic standard, meaning that all paper currency was backed up with its face value in gold. This ensured that a physical asset of value existed in conjunction with American currency. The price of gold continues to remain a bull market in the current climate, with record high prices in the past few years.
Source: Barchart
Last updated May 2013
Additional Info
Recent Posts on Gold
- Do Gold Prices Always Go Up During a Recession? (11/25/2020) - According to Forbes contributor David Rodeck, a recession is a “significant decline in economic activity that lasts for months or even years.” Formally, a recession is defined as being two or more quarters during which economic activity contracts. Symptoms of a recession include rising unemployment, falling personal incomes, and lagging industrial output. Although recessions are… Read more.
- How to Invest in Gold Futures (11/13/2020) - No matter what your investment goals are―whether it’s wealth appreciation or preservation―gold futures can help. Primarily available on the CME Globex, bullion contracts provide market participants with many speculative and hedging opportunities. If you’re an active investor, then gold derivatives are certainly worth a look. At this point, you may be asking, “How can I… Read more.
- How to Make Money Trading Gold (10/14/2020) - For more than 5,000 years, gold has been a mode of exchange, an artistic medium, and a store of wealth. Although the yellow metal’s primary functions have evolved over time, one thing is for sure: Gold has never been worthless.