Gold has always been powerful stuff, ever since its discovery people have placed it in extremely high regard and have gone through extraordinary efforts to secure it. Gold has been mined and traded for centuries and has always been a symbol of affluence and prosperity, used to build religious sculptures, as a currency and more recently commercially. If you’re interested in how to invest in Gold, please read on.
Jon Hunt (JH): Yes. It is legal. There was some initial confusion over the lawfulness of trading in gold and silver derivative products when the Dodd-Frank act was signed into US law. However, this has subsequently been clarified.
moving on from that thought…
Gold has seen a meteoric rise during the last dozen years which has had its price quintuple and popularity skyrocket.
There are a few ways people can invest in or trade the price of gold. Forex trading is one of them. As Forex Trading is a derivative, you don’t actually own the physical underlying asset, but you can profit from rises and hits the price of gold via a spread bet. Gold has become one of the most traded markets and is an attractive investment for many retail investors.
Gold is consumed by BRIC nations including India and China. Trading with Tradenext Limited you can trade on whether you believe that the price of gold will rise, or alternatively, that it will fall. If you’re correct and the price moves in your favour, you’ll make a profit of your stake multiplied by the number of issues that the market has moved. If you’re wrong and the price of gold moves against your bet, you’ll make a waste of your stake multiplied by each point that the market has moved.
Some investors view gold as a so-called ‘safe have n’ commodity and traders traditionally buy it for one of two reasons. Firstly it is viewed as a hedge against inflation and it’s also favoured in times of market volatility and economic turmoil.
Like most commodities gold is driven by supply and demand as well as speculation. However, unlike other commodities such as gas and oil, possession of gold is more important than its consumption, and so many traders perceive gold to trade more like a currency than your traditional commodity. Although there is not enough of it around the world to operate as a currency, gold trades in a very similar fashion. For example, when the Federal Reserve announced that it would keep interest rates low through 2014, gold rallied.
Adil Siddiqui Head of Sales at Tradenext Limited believes that investors can diversify their investment portfolio by investing in Gold. It is traded on margin and has a competitive spread.
The fall in gold in the past few months has informed us that what goes up must come down. It seems that bull markets can very quickly become bears.
Forex trading and CFD trading carry a high degree of risk to your capital in addition, you can lose more than your initial deposit. These trading products may not be appropriate for all investors so seek independent advice. If you’re looking for the best forex trading broker then I can assure you that Tradenext is the best choice for you. Tradenext provides online trading services including forex currency trading and cfd trading.