Session 10 — Gold Vehicles • True/False Quiz

1) Most mainstream gold ETFs aim to track the spot price of gold minus fees.

2) Vehicles like GLD/IAU/GLDM are typically backed by physical bars held in vaults.

3) A gold ETF account is FDIC-insured just like a checking account.

4) To open a gold futures position you must pay the full notional value up front.

5) Futures are “marked to market,” so gains/losses are settled daily to your margin account.

6) One standard COMEX gold (GC) contract controls 100 troy ounces of gold.

7) Buying a 1-oz gold coin from a dealer usually costs exactly the quoted spot price, with no premium.

8) A simple futures P/L formula is: (settle − entry) × oz/contract × contracts × direction.

9) ETFs can guarantee a fixed annual return if you hold them long enough.

10) Physical bars/coins involve issues like storage, insurance, and verifying authenticity.

11) Among U.S. gold ETFs, the largest fund typically offers the deepest intraday liquidity and tightest spreads.

12) A jeweler who fears near-term price declines would usually hedge by going short futures.

13) For the same 100-oz exposure and the same price move, the dollar P/L is identical for ETF, futures, and a gold bar (ignoring fees).

14) The maintenance margin on a futures position represents the maximum you can lose.

15) Gold itself pays no coupons or dividends while you hold it.