gold trading basic

Recently, gold has enjoyed spectacular bull run and put this in a larger number of people in the gold trade and investment. Seen many of the gold price resistance for the first time in the $ 1,000 an ounce (an ounce level several times and then beating violently to some extent. There have been gains for gold investors fully informed so heady and even gold trade can seem very attractive to beginners.

This article provides a gold trade and answer basic questions, "Why invest in gold?" And "How to invest in gold? " For starters, is reflected on the value of gold in the spot price, and is determined mainly by factors of supply and demand. In the first place, with an estimated value of gold is extremely feature both for the "protection", as well as for industrial and commercial

Examples include: countries such as China and India are constantly in demand for gold, and sometimes even hoarding - these demands can support gold prices. However, when the gold price rises suddenly, can be traded these treasures of gold and profitable investments.

Currencies have to deal with concern the low value when it is printing a lot of paper money or when there are economic issues. Gold does not weaken in a similar way in terms of value as they are tangible assets with a "stored value" inherent. In many cases, look to gold as a hedge against inflation.

During the economic crisis, and investors tend to avoid currency and other high-risk investments, preferring gold also prefer "hard currency", if you will. This is how it got its reputation as a safe haven of gold, which is what I have read about in the newspapers or listening to television reports.


Thinking the problem of the euro area recently some countries where they are saved - you've probably seen how gold prices sharply over the energy only a few months, and create new levels and return to them.In fact, in a short period of five quarters, gold moved above $ 1,000 an ounce for each level magic (ounce) after an attempt to overcome this a few times. The price of gold up to $ 1,426 just a few weeks back, which represents a 40% return for the huge savvy investors who entered at a thousand dollars.

Depending on risk appetite and the size of the trading account, and there are a number of ways you can participate in the gold market, as shown below

Physical gold
You can either buy gold bullion coins or if you are an investor who likes to keep the gold. Consideration of the possession of the Kruger, which is the gold coins of South Africa, which has a nice value of the investment. In some cases, it can also give you a reward-yielding currencies are good, but valuing them may not be easy for the beginner.

Gold Stocks
If gold is not your idea of investment gold, and thinking about owning stakes in gold mining and trading companies, or gold producers themselves. You can get exposure to increases in the value of gold.Through higher stock prices. Can some companies that the acquisition of gold after the exploration of gold resources, and therefore the likelihood of speculators driving up stock prices can not be dismissed as well.


Gold exchange traded funds, or gold ETFs
Gold exchange traded funds, or ETFs, and investment products that aim to track the gold price. Are bought and sold like a lot of stock, making it easy for investors to exploit movements in the price of gold without major expenses required when dealing with gold.

Covered warrants
For short-term speculation in gold, and can be orders of good coverage tools allow you to get exposure to both the rise and fall in gold prices. Buy calls if you have a point of view of rising gold prices, or buy puts if you imagine falling prices. It also is used to influence here, notes and expiration dates, this is a more serious approach to trading fairly.

Gold futures
Like a lot of orders covered, gold futures also provide a speculative play on gold prices. This is a market where many professionals predict and / or hedge, rather than long-term viability. While the stock is trading orders through your account, you need to open an account futures contracts for commodities with a broker to trade gold futures.And trade of goods can be more dangerous way to earn money, do not exercise caution when thinking about the gold trade. To bear in mind that in spite of the large gains that could be, and gold prices can plunge violently as well. Always be on the alert and reduce your losses to a comfortable level so as not to bankrupt your trading account.