Spread betting on gold
Leveraged bets on gold prices
Another recent financial invention is spread betting accounts, but is this the best way to buy gold?
Spread betting allows you to buy gold by betting on the direction of the gold price. Spread betting on gold prices is actually quite different to using physical bullion to invest in gold and means you suffer from:
- Excessive leverage to the live gold price
- Increasingly volatile investment
- Problems and delays opening spread betting account
- Owning a financial bet instead of physical gold
Concerns with spread betting providers have also affected the popularity of spread betting accounts for gold investment. Spread bets are used by professional traders to speculate on the price of gold, but their leverage and complexity has limited their appeal to investors who typically prefer to buy gold bullion.