Gold (Aurum) is the most popular precious metal in the world, as it is the primary component of the reserve funds managed by central banks. Without being a circulating medium, Aurum remains to be one of the most important elements in the periodic system as a vital commodity for various industrial applications.
It was an honour for us to announce the startup of this product in July 2009, on the 65th anniversary of the UN Monetary and Financial Conference which was held in Bretton Woods in July 1944 and became a momentous event in the world's financial history. The chief features of the Bretton Woods system were an obligation for each country to adopt a monetary policy that maintained the exchange rate of its currency within a fixed value—plus or minus one percent—in terms of gold. US dollar value was fixed at $35 per 1 gold oz, so USD became the only currency which was still fully backed by the metal.
While Bretton Woods started a transition period from the Gold Standard to the age of FOREX, Admiral Markets gives the Gold Standard a rebirth in the form of Gold Accounts, which allow customers to hold their funds in gold of .995 fineness!
While financial markets suffered from the excess volatility and major currency rates moved unpredictably, Gold Spot was gradually reinforcing its uptrend. It is worth mentioning that starting from the Millennium in 2001 and up to today the Gold Spot rate gained nearly 270%, which is roughly a 30% annual increase.
1 troy oz=31.10348 g. Let us suggest you have funded your AML Gold Account on January 2005 to the tune of $1000, which was equal to 2.44 troy oz; 4 years later, in January 2009, you were able to sell the same amount of gold for $2300! Too bad there was nothing like this service ever before!
Starting from July 2009 Admiral Markets began the Renaissance of the oldest financial traditions and started offering Gold Accounts to all customers with no restrictions! No minimum deposit is required as well.
- Gold Accounts are denominated in Gold Units, which are quoted by Admiral Markets in the MetaTrader4 platform as XAUUSD. XAU is an international finance symbol of the chemical element Au (Aurum). XAUUSD is a synthetic currency pair quoted in real-time as 1/1000 of the GOLD rate, which represents the price of 1 troy oz.
- Gold Accounts can be funded by all available methods in all accepted currencies. Incoming deposits are exchanged into Gold Units at the current XAUUSD rate or applicable cross-rates and vice versa when applied to withdrawal of funds. You can choose any available currency to withdraw in with the transfer amount being calculated by the current XAUUSD rate or the applicable cross-rate.
- Gold Accounts can be used for trading in all available markets, with no special terms or limits. You are even able to trade GOLD using the leverage mechanics to buy or sell a 100 oz contract with a small amount of gold required as a margin in your account.
- In technical aspect, XAUUSD is a standard currency pair, so every parameter of your Gold Account (such as Equity, P/L, Free Margin etc) can be calculated in real-time just like it does with any other base currency.
- If you wish to display your profits in deposit currency (Gold Units), in an orders currency or in points, just choose the proper context menu option of the 'Trade' layout:
Everyone is welcome to join the Trader's Room where you can open a Gold Account in 5 minutes, literally! If you already own a currency account with us, you can open a blank Gold Account and fund it from your currency account using the Internal Transfer Form in the 'Money Operations' section.
If you wish to try Gold Accounts in a test environment, please feel free to open as many demo accounts as you want via Trader's Room or directly through MetaTrader4. If you already have AML version of the MetaTrader4 platform installed, please be advised to download the newest version from our website, as the built-in demo registration of Gold Accounts have become available with the latest version. Once you have installed the terminal, please run the program and choose Account Type: demo-xau in File/Open an Account:
- You have financed your Gold Account with $500. At the receipt of funds by AML the GOLD rate is quoted in MetaTrader4 at 950.00, therefore the synthetic currency XAUUSD is quoted at 0.9500. So your Gold Account will be credited in amount of 500/0.9500=526.32 Gold Units.
- Account's margin rate is, for instance, 0.5%.
- At 06.05 London time you decided that EUR is about to raise against USD, so you bought 0.1 lots EURUSD at 1.3893. Contract size is 10'000x1.3893=$13893, but with the leverage provided by AML you are only required to have 0.5% of the trade size as margin collateral, which is in this case 13893x0.005=$69.47. Thus, if the XAUUSD rate is, for instance, at 0.9550, your margin for 0.1 lots EURSD will be calculated as 69.47/0.9550=72.74 Gold Units.
- Tick price for 0.1 lots EURUSD is $1 at all times, therefore your tick price in Gold Units will be continually calculated as $1/XAUUSD rate.
- Intraday price fluctuations were even stronger than expected, so you closed the trade at 1.3986 and gained 1.3986-1.3893=0.0093 (93 points or $93). At the moment of closing the XAUUSD rate was at 0.9600, so your final profit is 93/0.9600=96.88 Golden Units. Thus, your account balance after closing the trade is 526.32+96.88 = 623.20 Gold Units.
- As the XAUUSD rate raised from 0.9500 to 0.9600, you have made some investment profit because your deposit (526 Gold Units) have been revalued from $500 to 525.32x0.9600=$505.27
- After all, you have decided to withdraw 100 Gold Units from your account. While filling the Withdrawal Request Form, you are able to monitor current XAUUSD and other exchange rates at the internal Quote Board, and the current rate is 0.9630. You have chosen USD as a payment currency, therefore AML will send you a transfer for the amount of 100x0.9630=$96.3