A position on the price, not the metal
This site links to an account with FxPro, an international broker. This site is not the broker and takes no money from the reader. The account is a contract for difference, and it is a different thing from buying gold in a shop.
A position on the price beside a piece with a hallmark on it
A contract for difference is settled in the account's currency and carries no claim on any metal. You are not buying gold; you are taking a position on the price. That is a different thing from holding a bar or a coin, and it is a different thing from wearing a piece of jewellery.
A hallmark tells you what a piece is made of. A contract for difference tells you nothing about any metal, because no metal is involved. The two are not substitutes. One is a physical asset with a purity; the other is a financial position that can move with the price.
Why purity has no meaning in a contract that delivers nothing
Purity is a property of metal. A contract for difference has no metal, so purity does not apply. The price on the screen may be the price of 24-karat gold, but the contract does not contain 24-karat gold. It contains an obligation to settle in currency.
This matters because a buyer who thinks they are buying pure gold is mistaken. The contract is a derivative, not a purchase. It can lose value, and it can expire. A piece of jewellery does not expire, and its purity is fixed at the time it is made.
The terms worth reading before an account is opened
Opening an account requires identification and takes a day or two. A practice account exists and costs nothing. Those are the only facts this site can state about the process. Everything else is in the broker's terms, and those terms are the reader's to read.
The terms will say what happens to a position overnight, what the spreads are, and what happens if the price moves against you. None of that is a secret, but none of it is on this site. A reader should not open an account because this site links to it; they should open it only if the terms make sense for them.
FxPro is regulated by the FCA (United Kingdom) and CySEC (Cyprus). It is not registered with SEBI and is not regulated in India. Indian residents should note that remittances made under the Liberalised Remittance Scheme may not be used for margin trading, and nothing on this site is investment advice.
Start from the only published rate
The India Bullion and Jewellers Association announces its rate twice on every trading day. That is the reference for tax, for loans against jewellery and for buy-back counters. It is not a shop's price, and it is not what you pay.
See the FxPro account →