The change in gold price will determines whether you earn a profit or incur a loss. Gold comes in many shapes and sizes. Governments keep gold to store the wealth and used as its international currency exchange. For individuals, gold is kept as an ornament, accessory for beauty as well as in the safe deposit boxes. In the trading market, gold comes in physical forms (like nuggets or bullions) while it is traded in paper gold, gold futures and such. In order to carry out a trade in gold, you must understand the concept of buying and selling. Like every other form of investments, gold trading uses the standard dollars and cents and is determined through the weight, usually in ounce.
Where this is concerned, you will usually not own the physical gold anytime but you will need to determine the price you want to buy the gold at. There are several grades of gold in the market. If the gold is currently traded at US$400 per ounce, then you will be looking at the contract value of US$40,000. This is calculated based on the minimum value allowed in certain markets of 100 ounces (US$400 x 100). It must be noted that the most common months where gold is traded are February, April, June, August, October and December. Although most investors will tell you that the price of gold will usually increase, it would be best to be cautious and sell when it reaches the point you expected. In most cases, when prices of gold increases, the price of the US Dollar is expected to drop which will then drive investors to leverage their investments in both markets.