Financial experts are reminding investors to beware of high risks in gold futures as China's financial markets saw the debut of this new investment tool in Shanghai on Wednesday.
One financial analyst pointed out that many Chinese investors do not have as much experience in futures as they have in stocks. Therefore, they need to be more cautious when investing in this new category.
''We suggest investors avoid the trend of withdrawing from the market as soon as something goes wrong. In this market, those who sit it out for longer have greater chances of winning.''
The expert said gold futures may be susceptible to the effects of international politics, economics and the value of major currencies, so investors should be alert to changes in these fields.
China is world's third largest producer of gold, and is also a major consumer of the resource.