Here’s the twist: Not all that glitters are gold. You’re about to find out what exactly goes into the 2024 Olympic gold medal and why it’s worth examining the value of these precious metals.

After a century, the 2024 Summer Olympics will see the games return to Paris.

All in for the win, the world’s top athletes dedicated years to their sport. Olympic champion Jess Fox is hoping to make it back-to-back gold this year and will be competing tirelessly to take home the ultimate symbol of glory—the Olympic gold medal.

On Thursday 8 February, Tony Estanguet, President of the Paris 2024 Organising Committee unveiled the medals of the upcoming Paris Olympic and Paralympics.

The Paris Mint is manufacturing 5,084 medals. Of this number about 2,600 are for the Olympics and 2,400 for the Paralympics.

Each gold, silver, and bronze medal features an 18-gram hexagonal chunk of iron that was once part of the Eiffel Tower. The medals measure 85mm in diameter and 9.2mm in thickness.

Unlike any medals awarded since Athens 1896, LVMH’s Chaumet has taken up the challenge of combining these precious metals. They have brought the vision of modern Olympic medals to life, incorporating a small piece of Paris into each design.

Breaking down the composition of the gold medal

Silver gets the gold

You’d be forgiven thinking that the Olympics Paris 2024 gold medal is made of gold.
The fact is that it isn’t made of gold at all. Only 6 grams are pure gold, used for plating.

95% of the Olympic gold medal is actually silver—505 grams, to be exact.
The remaining 18 grams are iron.

The silver medal weighs 525 grams, with 507 grams of silver and 18 grams of iron. Based on the spot prices for silver and iron as of July 24, its value is around $486.

Based on VT Markets’ analysis, silver has been recognised as the top-performing commodity of 2024. Silver prices (Symbol: XAGUSD) have risen by 21% year-to-date in 2024, outperforming other metals like gold and copper, as well as the S&P 500 index.

Read the full analysis here: Silver shines bright as the best-performing commodity of 2024

The bronze medal weighs 455 grams, made up of 415.15 grams of copper, 21.85 grams of zinc, and 18 grams of iron. Its value is roughly $13.

Key stats behind the Paris 2024 medals

529g: the weight of the gold medal
Gold plating: 6 grams
Silver: 505 grams
Eiffel Tower iron: 18 grams

525g: the weight of the silver medal
Silver: 507 grams
Eiffel Tower iron: 18 grams

455g: the weight of the bronze medal
Copper: 415.15 grams
Zinc: 21.85 grams
Eiffel Tower iron: 18 grams

How much is the metal of an Olympic medal worth?

If these medals were made entirely of gold, they’d be worth around $41,161.50 each! That’s why the last time they handed out pure gold medals was way back in 1912.
 
While the monetary value of an Olympic medal is around $500, that doesn’t mean athletes don’t make money at all.

The payout for Olympic medalists varies by country— with Malaysia, Morocco, or Serbia receiving an upward of $200,000 from their country’s government or national Olympic committee for bringing home gold. The true value lies in its priceless pride of victory.

Source: USA TODAY

Medals with some history behind them have been sold for an excess of 1 million dollars on auction. The value of past gold medals has surged dramatically due to record gold prices. For example, one of Jesse Owens’ medals from 1936 sold for approximately $1,470,000.

US swimmer Michael Phelps is the most decorated Olympian with 23 golds, 3 silvers, and 2 bronze, earning him the title of “King of medals” in the Summer Olympics and an estimated net worth of $100 million. 

This significant wealth comes from his exceptional swimming career, smart business investments, and profitable brand endorsements.

Hence, the 2024 Olympic medals not only symbolise athletic achievement but also reflect economic dynamics as metal prices continue to fluctuate.

On the topic of gold, you might be interested to discover 4 reasons why traders flock to safe-haven gold during global political tensions 

Our precious metals are made to compete

This makes it an exciting time to examine the raw values of the commodities that make up the Olympic medals.

Although various financial instruments like options, futures, and ETFs are available for trading gold and other precious metals, their performance can differ significantly, especially depending on the broker offering them.

Much like a top Olympian, VT Markets’ CFD precious metals—gold (XAUUSD), silver (XAGUSD), and copper (CME)—demonstrate a competitive edge in a highly dynamic market. Trading with VT Markets offers advantages like ultra-low spreads and flexible leverage options up to 500:1.

With a diverse precious metals portfolio for you to choose from, it’s easy to optimise your trading strategy and align them with your preference. In the same way athletes compete in multiple events to increase their chances of winning, trading various precious metals like gold, silver, and platinum helps diversify your portfolio, spreading out risk.

Unleash your athletic spirit

In celebration of the 2024 Paris Olympics, VT Markets is running a once-in-four-years campaign where you could win up to USD 14,000 from our prize pool by trading with us. Complete simple daily missions to earn rewards and stay in the race to maximise your gains.

Download the app now to get started

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

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Every day, traders make countless decisions that shape their financial futures, yet many are unaware of a subtle force influencing their choices: information bias.

This cognitive tendency can significantly skew our perception of market dynamics and lead to suboptimal trading outcomes.

Understanding how information bias affects our decision-making process is essential for traders looking to improve their performance and avoid common pitfalls.

What is information bias?

Information bias refers to the tendency to seek out, interpret, and remember information in a way that confirms our preexisting beliefs or hypotheses.

In the context of trading, this can manifest as a predisposition to favour certain types of information or sources, potentially leading to skewed analyses and flawed trading strategies.

Several types of information bias are particularly relevant to trading.

Confirmation bias, for instance, involves seeking out information that supports our existing views while disregarding contradictory evidence.

Availability bias occurs when we overemphasise easily accessible or recent information, potentially ignoring equally important but less prominent data.

Another common form is anchoring bias, where we rely too heavily on the first piece of information encountered when making decisions.

To illustrate, consider a trader who has invested heavily in a particular stock. They might subconsciously seek out positive news about the company, pay more attention to bullish analyst reports, and dismiss or rationalise any negative indicators. This selective information processing can lead to a distorted view of the stock’s true value and potential risks.

How information bias affects trading decisions

The impact of information bias on trading decisions can be profound and multifaceted.

One of the most significant effects is overconfidence in decision-making. When traders consistently expose themselves to information that aligns with their beliefs, they may develop an inflated sense of their ability to predict market movements. This overconfidence can lead to excessive risk-taking and a failure to adequately hedge positions.

Moreover, information bias often results in the neglect of important information. By focusing solely on data that confirms their existing views, traders may miss crucial signals that could indicate a shift in market trends or underlying fundamentals. This tunnel vision can be particularly dangerous in volatile markets where rapid changes are common.

Misinterpretation of market signals is another consequence of information bias. Traders may assign undue importance to certain pieces of information while downplaying others, leading to a distorted understanding of market conditions. For example, a trader might overreact to a single positive earnings report while ignoring broader economic indicators that suggest caution.

Common sources of biased information in trading

In today’s digital age, there are numerous sources of potentially biased information that can influence trading decisions.

Social media platforms and online forums have become increasingly popular among traders for sharing insights and discussing market trends. While these can be valuable sources of information, they can also create echo chambers where certain viewpoints are amplified and opposing opinions are marginalised.

Financial news outlets, both traditional and digital, can also contribute to information bias. The need for constant content and engaging headlines can sometimes lead to sensationalised reporting or an overemphasis on short-term market movements.

Personal networks, including friends, colleagues, and mentors, can similarly reinforce existing biases if not balanced with diverse perspectives.

Recognising your own information biases

Recognising our own information biases is a crucial step in mitigating their impact on trading decisions.

Self-assessment techniques can help traders identify their tendencies towards certain types of information or sources. Keeping a trading journal that includes the rationale behind each decision can reveal patterns of biased thinking over time.

There are also warning signs that may indicate biased decision-making. These can include a reluctance to consider alternative viewpoints, emotional reactions to contradictory information, or a tendency to attribute successful trades to skill and unsuccessful ones to external factors.

Strategies to overcome information bias

To overcome information bias, traders can employ several strategies.

Diversifying information sources is paramount. This means actively seeking out a range of perspectives, including those that challenge our existing beliefs. Engaging with contrary opinions, even if we ultimately disagree with them, can help broaden our understanding of market dynamics and potential risks.

Implementing a structured decision-making process can also help mitigate the effects of information bias. This might involve creating a pre-trade checklist that requires consideration of both bullish and bearish arguments before entering a position. By systematically evaluating multiple viewpoints, traders can reduce the influence of personal biases on their decisions.

Using quantitative data alongside qualitative information is another effective strategy. While news and analysis can provide valuable context, hard data on factors like price trends, volume, and financial metrics can offer a more objective basis for decision-making. Balancing these different types of information can lead to more well-rounded and less biased trading strategies.

The role of technology in mitigating information bias

Technology can play a significant role in mitigating information bias.

AI-powered news aggregators can help traders access a wider range of perspectives more efficiently, reducing the risk of information silos.

Sentiment analysis tools can provide insights into market mood beyond individual perceptions, offering a more objective view of trader sentiment.

Automated trading systems, when properly designed and implemented, can also help reduce the impact of information bias by executing trades based on pre-defined, quantitative criteria rather than emotional reactions to news or market movements.

Conclusion

Information bias is a pervasive and potentially harmful influence on trading decisions. By understanding its nature, recognising its sources, and implementing strategies to mitigate its effects, non-professional traders can significantly improve their decision-making processes and potentially their trading outcomes.

The journey to overcoming information bias is ongoing and requires constant vigilance. As you continue your trading journey, regularly reflect on your information consumption habits and decision-making processes. Challenge your assumptions, seek out diverse viewpoints, and strive for a balanced, objective approach to market analysis. By doing so, you will be better equipped to navigate the complex world of trading and make more informed, less biased decisions.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

The dollar is king, but it is at risk of losing its throne.

There’s talk going around about BRICS creating a new gold-backed international currency, sparking fears that it could spell trouble for America and the dollar as the world’s main currency.

If you trade gold and other US-related assets, you might want to read on.

Is there a good reason to create the BRICS currency?

Developing nations are growing vary of America’s financial dominance, especially with the recent sanctions from Russia.

There was a time when currencies were backed by gold. The more gold a nation has, the more money could be printed.

When the Bretton Woods agreement came into force, the US became a major economic power after World War II. The international monetary system that was set up by 44 allied nations viewed the USD as a safe currency to keep as reserves.

Under this system, gold was fixed at $35 per ounce. Countries sent lots of gold to the US, where the Treasury kept it safe. Central banks could trade their extra USD for gold whenever they needed to.

However, things took a turn when the United States faced a trade deficit, resulting in a massive outflow of USD. When President Nixon announced the suspension of the dollar’s convertibility into gold, the world was shocked.

It was a dirty move played by the US that many have seemed to forget.

As today’s currencies aren’t backed by tangible assets, countries could print more money as needed—sometimes excessively. This is one reason why inflation is rampant in certain areas.

How a BRICS currency could replace the dollar

The appeal of having a common currency among the BRICS countries is obvious.

Imagine having an independent currency that remains neutral and not pegged to any country or government. It’s a new trade route with opportunities for the BRICS countries. They no longer must trade away precious commodities to receive stacks of paper money that could lose its value overnight.

The US has the world’s largest national debt, built on a system that could collapse like a house of cards. As trillions of dollars are printed and dispatched to balance international debt, the value of USD sees a disturbing drop.

Interested in learning more about monetary policies and how money printing works?

In Episode 2 of Traders Brew podcast, Beam Chanat, market analyst of VT Markets deep-dives into the topic of central banks and quantitative easing.

Click here to listen to the podcast

How does the BRICS currency affect forex trading

The idea of a common currency among the BRICS countries — Brazil, Russia, India, China, and South Africa — has raised questions about how it could affect forex trading.

1.      Shift in currency pairs

For forex trading platforms, a BRICS common currency could mean changes in the currency pairs they offer. Instead of the usual individual pairs with BRICS currencies, platforms might start featuring pairs with the new common currency. Traders would need to familiarise themselves with these changes and learn how to analyse the new pairs effectively.

2.      Less volatility on exchange rates

For forex traders, a BRICS common currency could make things a lot easier. Right now, exchange rates between different currencies can change quickly, which makes trading tricky. But with a common currency, traders wouldn’t have to monitor these fluctuations between BRICS countries. This could make trading more stable and predictable.

3.      Impact on economic data

Forex trading depends a lot on economic data like interest rates, inflation, and economic growth. If there’s a common BRICS currency, data from these countries would become even more important for traders. Changes in one BRICS country’s economy could affect the common currency, influencing trading decisions across the board.

4.      Higher demand for gold-backed currencies

Gold is an obvious asset that will be affected, so traders should observe the movements of XAUUSD. Another easy and obvious alternative could be investing in gold-backed cryptocurrencies, but a ‘crypto’ approach to the BRICS currency hasn’t been talked about publicly yet.

No official launch date, but the BRICS currency holds weight

It’s still too early to predict when a BRICS currency will be released as we are still in the phase of economic shift and exploration. In a financial paradigm shift, it’s wise to stay informed and adaptable on the true rival to the dollar.

Open a VT Markets’ trading account now to keep up with the markets

Follow our social media channels for the latest news : Facebook | Instagram | Twitter (X)

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Key Points:

• PCE Data Impact: Anticipation of the US Personal Consumption Expenditures (PCE) Price Index release is causing marginal declines in gold prices, with potential volatility based on the results.
• Long-Term Uptrend: Despite recent dips, gold’s long-term uptrend remains intact, suggesting continued strength as a stable investment.
• Geopolitical Uncertainties: Ongoing geopolitical tensions, such as in the Middle East and Ukraine, are boosting gold demand as a safe haven.
• FOMC Sentiment: Mixed outlook on future rate cuts from the Federal Open Market Committee creates uncertainty for gold investors, potentially leading to price fluctuations.

As we anticipate the release of the US Personal Consumption Expenditures (PCE) Price Index for June, gold (XAU/USD) prices edge marginally upper 0.33%, trading in the $2,400. This economic indicator could inject volatility into the market, potentially shaking the recent stability of gold prices.

Daily Digest Market Movers: Gold Price Recovers the $2,400 Figure

Gold traders are focused on the release of key economic data, including Durable Goods Orders, the preliminary Q2 GDP number, and the Core PCE for June. Durable Goods Orders are expected to increase from 0.1% to 0.4% month-over-month (MoM). The Gross Domestic Product (GDP) for Q2 is projected to rise from 1.4% in Q1 2024 to 1.9% quarter-over-quarter (QoQ), indicating that the economy is accelerating as the year progresses. The Fed’s preferred measure of inflation, the Core PCE, is expected to dip from 2.6% to 2.5% year-over-year (YoY). The latest Consumer Price Index (CPI) data revealed a continuation of the disinflation process in the United States (US), boosting gold prices and increasing the likelihood that the Fed will cut interest rates starting in September.

The PCE Data’s Impact on Gold Prices

The PCE data is crucial as it is the Federal Reserve’s preferred inflation gauge. Higher inflation could prompt the Fed to adjust interest rates, impacting gold prices as gold is a non-interest-bearing asset. Stable or rising consumer spending could support a resilient economy, potentially leading to higher interest rates, which might negatively impact gold. Strong business investment would indicate economic health, possibly leading to higher interest rates. A robust GDP report could bolster the case for higher interest rates, affecting gold’s appeal.

FOMC Sentiment and the Mixed Outlook on Rate Cuts

The Federal Open Market Committee (FOMC) has a mixed outlook on future rate cuts. While some members anticipate the need for rate cuts in the near future, others remain cautious, creating an environment of uncertainty for gold investors. This mixed sentiment can lead to fluctuations in gold prices as investors react to the potential changes in monetary policy.

Geopolitical Uncertainties Boost Gold Demand as a Safe Haven

Geopolitical uncertainties continue to significantly influence the demand for gold as a safe haven. Tensions in the Middle East and the ongoing conflict in Ukraine are prime examples. These events create a backdrop of instability, prompting investors to turn to gold to protect their wealth and thereby influencing its price.

Finance and Gold Price Volatility

Financial markets are poised to react strongly to the upcoming PCE data. An inflation rate higher than expected could lead to significant volatility in gold prices, as investors adjust their strategies based on the new economic information.

Experts Weigh in on PCE Data and Potential Rate Cuts

Jim Reid of Deutsche Bank predicts a slight increase in core PCE, which could lower the year-on-year rate to its lowest in over three years. Raphael Bostic, Atlanta Fed President, expects a rate cut in Q4, suggesting a potential series of cuts in 2025. Michelle Bowman, Fed Board of Governors, cautions that the Fed is not yet considering rate cuts.

Regional Factors Shaping Global Gold Demand

The global economic outlook remains mixed, with varying inflation and growth rates across regions influencing gold demand differently.

In the United States, potential volatility around the November election and the Federal Reserve’s interest rate decisions will be significant drivers of gold prices. These political and economic factors create an environment of uncertainty, which can lead to fluctuations in the demand for gold as investors seek safe havens.

In Asia, there is increased gold demand from central banks hedging against currency devaluation. This regional trend highlights the strategic importance of gold as a stable asset amidst economic uncertainties.

In Europe, economic stability and ongoing geopolitical tensions play a crucial role in shaping gold’s appeal. The region’s economic health and political landscape significantly influence investor sentiment towards gold. Understanding these regional dynamics is essential for comprehending the global factors that drive gold demand and influence its price movements.

Investors Prepare for Market Swings as Gold’s Long-Term Stability Shines

Gold prices are poised for potential volatility following the release of the PCE inflation data. While the long-term outlook remains positive, with gold benefiting from geopolitical uncertainties and a possible Fed rate cut, the immediate future may see fluctuations based on economic data and Fed commentary.

Investors should brace for potential market swings and consider the broader economic indicators and geopolitical events that could shape gold’s trajectory in the coming months. Despite short-term volatility, gold’s role as a stable, safe store of value continues to underpin its long-term attractiveness.

Dear Client,

To provide a more favorable trading environment for our clients, VT Markets will have leverage adjustment for certain products on July 29, 2024. Please check the details below:

The above data is for reference only, please refer to the MT5 platforms for the updated data.

Friendly reminders:
1. All product settings stay the same except for the leverage.
2. The margin requirement of the trade may be affected by this adjustment. Please make sure the funds in your account are sufficient to hold the position before this adjustment.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.