Admiral Markets Gold Accounts are designed as MetaTrader4 trading accounts denominated in gold. Gold Accounts are available for all customers, which is, beyond question, a considerable investment opportunity for every trader at all times.
Gold (Aurum) is the most popular precious metal either in common life and financial 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 finance 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 fineness .995!
GOLD Price Movement Chart, 2001.1 – 2009.07 (click to maximize)
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 until today the Gold Spot rate gained nearly 270%, which is about 30% annually.
1 troy oz=31.10348 g. Let us suggest you have funded your AM Gold Account on January 2005 in amount 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 alike this service ever before!
Starting from July 2009 Admiral Markets begins the Renaissance of the oldest financial traditions and offers 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.
- Please note that Gold Accounts cannot be funded directly by depositing money to such accounts. In order to transfer funds to your Gold Account, you should firstly deposit any of your trading accounts opened in any national currency. If your currency account has free funds, you can transfer any amount of currency to your Gold Account by using the Internal Transfer Form in the Money Operations section in your Trader\'s Room profile. Incoming transfers are exchanged into Gold Units at the current XAUUSD rate (or applicable cross-rates).
- In addition, please note that Gold Accounts are not enabled for conducting direct withdrawal operations of funds (for example, to your bank account). In order to withdraw funds from your Gold Account, you should firstly transfer any amount of Gold Units to any of your trading accounts opened in any national currency by using the Internal Transfer Form in the Money Operations section in your Trader\'s Room profile. Outgoing transfers are exchanged into currency at the current XAUUSD rate (or applicable cross-rates). Then you will be able to use standard withdrawal methods applied to currency accounts.
- Gold Accounts can be used for trading in all available markets, with no special terms or limits. Particularly, 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 order's currency or in points, just choose the proper context menu option of the 'Trade' layout:
Everyone is welcome to Trader's Room where you can open a Gold Account literally in 5 minutes! 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 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 AM version of the MetaTrader4 platform installed, please be advised to download the new version from our website, as the built-in demo registration of Gold Accounts have become available in the latest installation file. Once you have installed the terminal, please run the program and choose Account Type: StandardXAU in File/Open an Account:
- You have financed your Gold Account in amount of $500. At the receipt of funds by AM 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 AM 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 AM will send you a transfer for 100x0.9630=$96.3