Traders looking to make a profit on futures contracts have a number of options, including buying gold ETF futures contracts on the open market.
But there are a few drawbacks to doing so.
One of the biggest, according to gold futures analyst Adam Sperling, is the risk of a crash.
If the price of gold falls, futures prices will crash.
“It’s a bit of a gamble,” Sperles said.
“If gold is going to go down to $15, you might as well sell some futures to make the buy.”
If gold is in the $50 range, there is a chance of a short squeeze, meaning the price will go down and the futures will have to be sold.
“I don’t think gold has a bubble, but you can’t get away from the possibility of a price crash.”
This risk is compounded by the fact that gold has been highly volatile in the past year.
It peaked at around $1,400 an ounce in March 2017, and it’s since dropped nearly a third to $1.28, a level where it’s still considered a safe asset.
The most recent price drop has also put pressure on gold prices, as it has plunged over the past few weeks, but it is still trading around $4,000 an ounce.
In 2018, the S&P 500 lost nearly 1 percent of its value, while gold has gained 1.5 percent.
And gold has also been a good investment for investors.
Sperlings believes that the futures market will continue to benefit from its volatility.
“There is a lot of upside to gold, and gold is a safe store of value,” he said.
For now, the futures markets are a bit more risky.
There are also concerns about the futures contracts being too expensive for consumers.
While gold is currently trading for around $16 an ounce, there are many concerns that gold futures could become prohibitively expensive.
“You can get into the $4 million range for a single contract and that could be an issue for a lot,” Smerling said.
If gold prices continue to fall, the risk to futures traders could be even greater.