Alpari is pleased to introduce yet another account for its clients: the “Gold Account.” This account features a new deposit currency, GLD, a unit tied to the market price of gold.
At Alpari, we are always striving to open up new frontiers in brokerage services. “Gold Accounts” are our latest innovation, serving as an alternative to the UMA (unallocated metal account), an investment tool currently offered by banks.
“Gold Accounts” give you access to the entire selection of trading options offered by Alpari. These new classic.mt4 accounts will allow you to trade Forex as well as share CFDs, commodity futures, index funds, and, naturally, contracts on gold (XAUUSD, #GC). What makes the Gold Account different is that the account information (balance, profit, etc.) is measured not in dollars or Euros, but in units of gold!
Considering that the price of one Troy ounce of gold now exceeds 1,300 USD, we have simplified things for you and made the base currency of “Gold Accounts” equal to one thousandth of the current XAUUSD spot rate. Juxtaposed against the US dollar or Euro and reflecting the market price of gold, we hope GLD is an effective and easy-to-calculate unit, amounting to the dollar equivalent of 0.031 grams of pure gold.
As opposed to currencies, gold is less prone to rapid price drops and is inherently insusceptible to inflation, due to the limited nature of the world’s gold supply. Moreover, Europe’s central banks are now obligated to limit the selling of gold, after signing the Washington Agreement of 1999. This agreement, which was recently extended through 2014, is one of the main factors behind the recent rapid growth in the price of gold, a trend which continues to this day.
When you open a “Gold Account,” your deposit will be protected from economic or political instability. As a rule, recessionary pressures in the economy are accompanied by a rising demand in precious metals.