Gold that is traded in EFTs can take either metal or paper form
Gold that is traded in EFTs can take either metal or paper form
Gold is traded in two ways; it can be either in metal form or in paper form. When gold is sold in paper form, one usually buys a proxy for gold, which means a pledge to deliver actual gold or its monetary equivalent. The value of paper gold can have a dramatic influence on the value of real gold. For example, if the value of paper gold decreases, the value of actual gold will also decrease, though paper gold has no effect on the amount of gold being produced.
