Investing Commentary

How To Make The Most Of Investing In Gold

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Gold is one of the most precious things on the planet that a lot of us covet. The price of gold has fluctuated over the years, often seeing it highlighted in the media. Sometimes it’s rising, and other times it’s dropping but most often that not, gold has been on a steady increase for many years. Most likely since the 1980s. As investors in gold already know, the benefits of doing so and how you can make profits but if it is something that you’re new to, then it’s going to be important to look at how investing in this wonderful element is going to be a beneficial business choice. When gold prices are on the rise, the benefits of selling our gold for profit and making some passive income from it are huge. When the price is falling, investing in gold is beneficial because it means we can acquire the gold at a much cheaper price and sell it when the market is up to make a profit. That is when it’s time to work on trading. Many of us invest into the stock market but an argument can be made that gold is a profitable industry that it could be a great choice for 2020.

Gold is considered to be a great asset, it has always maintained its value and today is still used across so many industries. People choose to invest in gold to protect themselves against market volatility but it can mean that the investment is very beneficial as a trader.

Trading gold has always been a lucrative thing to get involved with and, with so many great brokers around today, it has never been easier to get involved. It’s a great sideline to have and a good industry to get involved with because those who choose to buy, will see that the new supply is rapidly absorbed leading gold prices to rise ever higher which means that you are going to make some money somewhere. Sure we probably all have a pair of gold earrings from years ago or gold rings passed down through generations and some may hold a lot of sentimental value but there are likely to be bits of gold that you can sell and make some money from. If you have some concerns about getting into the trade, then you are probably thinking about things such as:

  • Worries over instability with your bank– is there any political instability where your money or trade is threatened and are there any problems with the money or banks within a nation. Gold is always the first option investors turn to so it does make it a great choice.
  • Inflation – can I afford it as the market grows and prices become higher? Well the truth is that it is very common for people to turn to gold instead as an asset because it doesn’t ever lose its value and your ROI will be seen.
  • Political unrest– when the world is plunged into chaos as it currently is with the recent pandemic, it has affected nations and many people’s businesses including the cessation of trade which doesn’t bode well with investors. If this is the case, it may be a worry that people are in fact choosing to hoard gold as a way of protecting their life savings and not sell anything. That is something that often eases over time and these difficult times usually create people to think in such a way that is irrational until they realise that it is safe to get back into the market trade.
  • Nobody will want to buy my gold– if all you have to offer is a few gold chains then don’t set yourself short. Precious metals like gold offer good international liquidity value, and there is always someone who would be willing to purchase gold and somewhere in the world, the gold market will be up.

Getting more help in trading

I have some gold, but how do I begin to trade with it? In this exciting industry, selling will become just as important as buying. Be careful and considerate as a businessperson to know your chances and to weigh up the pros and cons because biding your time in this industry will serve you very well. Before you sell any of your assets, however, consider web auctions like eBay. This may not seem particularly exciting but it can be a way in and give you some valuable information relating to how the industry works and the prices that they are selling for. You also have to have a keen eye for what you’re selling and know it well.
There are many different techniques and mechanisms you can use in gold trading strategies which also look at the business on the whole as well as your own gold. This is known as geopolitics. Take a quick look at gold’s price history and you’ll see predictions today are guided by geopolitical forces. How much is something similar selling for and what is the history of your gold, or as much information as you can find, at least. If you are selling a watch, or a piece of jewellery it’s likely to sell quicker and will be desirable. You could also look at selling more unique pieces to vendors with market stalls at craft, or any type of local antique fairs but this is just the beginning of trading gold, and there are much more exciting journeys to be had, once you get involved with the right brokers.

You will need to get help when you are entering the business. You need to invest in people that you know are legitimate and those who will be able to help you sell to gold investors. That is why gold signals are so important. You want to look at companies who have a wealth of experience in trading to get you the best deals. You need a trusted gold broker. You don’t want to be hindered too much when you’re getting involved with gold trading but it does happen. There are many things to consider, and it’s best to get educated with all of them before you delve further into things.
These three factors below have a huge impact on market volume, sentiment and trend intensity:

  • Deflation and inflation – when the price of the gold is going up and when is it going down? How long will it take for the price to rise again?
  • Fear and greed
  • Supply and demand

But to help you in these times, you are going to need some top tips that will aid you in your gold trading. It’s time to make a profit.

  • Pay attention to cycles and turning points – keep on top of the industry news and see how many markets have cyclical nature. Look at when the times are looking the best to trade and when they are dipping a little.
  • Look at using RSI and Stochastic indicators for gold.
  • Keep track of the price seasonality – you don’t want to price yourself out of the market and have people turn your gold away, don’t overprice, look at what is going to be beneficial in the moment, season by season.
  • Pay attention to shifts. Over the past decade, gold mining efforts have higher costs due to the challenges of accessing underground gold. It’s harder to reach and gets more dangerous, so be sure to note this. Also it’s important to note that limited production isn’t a sign that gold is on a decline, it actually means that when it is sourced it is gaining a higher global demand. A positive for new traders.
  • Blogs & newsletters – look regularly at blogs, discussion forums, and newsletters and get information from market experts.
  • Open a demo account – These are accounts where you can actually practice trading with moving averages strategy for example, before investing your own money; as a rehearsal so to speak that will give you a good insight into how the industry works and if it is going to be profitable for you.
  • Academy courses and PDFs – There are ways for you to learn about the industry too and these can be highly recommended. Things such as boot camps, virtual workshops, and buying some great gold trading books will help. You can look at tutorials as well as looking into the secrets of the industry and seeing how experienced investors have made their money.
  • Look at TradingView – This will give you a bigger insight into price graphs, charts and reports for trading gold on the spot and futures markets. You do have to certainly have a little knowledge about business and maths to get the full picture of the industry. TradingView is very helpful especially for beginners.

Is there definite ROI with gold trading?

The answer really is no. It takes a lot of luck as much as anything else and can be a difficult industry to crack but it is popular and that is what makes it such a great industry to be in. The industry will never die, unlike some other areas of investment that are likely to fade out quickly, this is something that is here for the long haul and has been around for hundreds of years. When you look at gold mining, it is still a massive industry in itself, so the demand is there. Mining provides around 75% of the world’s gold supply. Back in the mid 20th century, the majority of mined gold came from South Africa but now this isn’t the case which means that it is a global possibility to trade and buy now without the worry of your geographical location hindering you. Some countries however do have a bigger interest. For example India has a longstanding cultural history with gold and has imported gold for hundreds of years. It often ranks in the top two of the world’s most gold-consuming countries year on year – but this isn’t difficult to understand as they focus a lot of their fashion on gold and this has always been the case.

Does the timing affect the price and success? It can do. There is data that shows that the price of gold tends to move the most during the main hours of the day, GMT time. This is down to the markets being open across the USA. so it really does mean that if you are going to be trading, the best time would be then. This may also correspond to the time of year that gold is bought. It is often seasonal, meaning that the first quarter of the year tends to be when it is at its most profitable and most expensive to buy. If buyers want to wait until the gold is at its lowest then waiting until the end of March is going to be the best thing to do. March has held the lowest average monthly price since 1975, which is something that all newbies must note when starting out trading gold.

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