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|
|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 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.|
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.
Last updated May 2013
Recent Posts on Gold
- Three Easy Ways to Buy Gold and Silver (2/1/2022) - Most New Year’s resolutions are doomed from the start. You create too lofty a goal that must be accomplished in 365 days and usually commit too intensely in the first 30 and fall too easily back into bad habits by day 100.
- Understanding Expiration And Futures Contracts Months (10/19/2021) - A futures contract is a legally binding, perishable security. Accordingly, each has a distinct expiration date on which the contract’s terms are settled. When the contract expires, it ceases to be tradable on the open market. The concept of expiration makes futures contracts finite instruments. If you’re trading shares or currencies, then there are no… Read more.
- Is the Bitcoin (BTC) Futures Contract the New Gold? (7/15/2021) - Unless you’ve been living under a rock, you’re aware of the meteoric 2020-2021 rise of Bitcoin (BTC). In a little more than 12 months, BTC prices rallied from COVID-19 panic lows near $5,000 to early 2021 all-time highs just below $65,000. The spike in value was one of the biggest financial stories in recent history.… Read more.