Secrets Of Trading Gold!
Feb0
Discover the High Velocity Market Master System that can trade gold, silver, crude oil, forex, futures, stocks, options, ETFs almost all market with the same suite of technical indicators. Turn $200 into $100K in just three months with this Penny Stock Trading System. Read the 40 page FRWC insider report on the potential of automated trading and how easily you can do it. Recently gold prices touched almost twelve hundred dollars per troy ounce breaching the historical barrier. Many people only think of stock as a way to invest. Recently people have also talking about currency trading. How about gold trading? In this article, I will show you how you can invest in gold. Gold investing can hedge your investment portfolio. Gold prices are expected to do much better in 2010. Though, you cannot rule out a temperary retracement but the trend in gold prices has been up for many years now. Now, gold is a commodity. Unlike other commodities like crude oil, coal, cotton, soybean, coffee, pork bellies or live cattle, you can easily store gold. Gold in storage over time appreciates in value. So one of the best ways to invest in gold is to buy it directly in shape of bars, bullions or even jewelry. You can wear gold jewelry and enjoy the status this gives while at the same time this gold jewelry can come handy when you want to sell it. You can even buy gold coins. Remember the time of yore, when gold coins used to be the universal currency. So direct investing in gold can be a good way to invest in gold. Now, try to invest in crude oil, coal, coffee, cotton or other commodities directly. First you will need a large storage hall for storing that commodity.
One of the easiest ways to invest in gold is to buy gold coins. Gold coins are better than gold bars as you can buy or sell them in smaller units. Most popular gold coins are the Gold Eagle (issued by the US Government), Gold Maple Leaf (issued by the Royal Canadian Mint) and Gold Krugerrand (issued by South African government).
As said before, people especially women love gold jewelry. Apart from that you can buy gold certificates. These are hybrid certificates that gives you the ownership of gold but you don’t have to take physical possession of your gold. Gold is stored in a safe location by the company, firm or the authority that issued the certificate.
Trading gold futures contract is what I like. Futures trading is interesting. You can profit from the volatility in the underlying assets. Gold futures is one of the direct methods to profit from the volatility in the gold market. But you need to know how to trade futures contracts if you want to do it. Futures trading is not difficult. There are some differences as compared to stock trading but you can learn futures trading by paper trading it first. The most popular futures contract is the COMEX Gold Futures. These futures contracts get traded on the New York Mercantile Exchange (NYMEX). COMEX Gold Futures are the most liquid gold contracts in the world. There are some traders who are specialists in trading gold futures.
The other is the CBOT Mini-Gold. This contract gets traded on CBOT and is popular for its smaller size that allows many retail investors to profit from the gold market plus you can trade it electronically on the CBOT electronic trading platform. Now many investors don’t want to mess around with gold futures! For them, Exchange Traded Funds (ETFs) offer a good investment opportunity in gold. There are two gold ETFs to choose from. One is the StreetTracks Gold Shares. This fund is a good way to profit from gold without actually owning it. The other gold ETF is iShares COMEX Gold Trust. Now both these ETFs track the gold prices in the spot market making their performance almost identical most of the time.
Another method to get exposure to the gold is by investing in gold mining companies. A few popular gold mining companies are Barrick Gold Corporation, AngloGold Ashanti Limited and other. Newmont Mining Corporation is one of the largest gold mining companies in the world!
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Trading Gold Futures Can Make You Rich
Jan0
Recently gold prices breached the historical barrier of ,200 per troy ounce. Then a retracement took place and gold prices have come somewhat down. Gold market has been in a secular uptrend for the last decade. Gold is still the unofficial international currency. But there are some shocking secrets about the gold market that you should know. Central Banks all over the world are concerned primarily with fighting inflation. Now speculators see rising gold prices as a sign of inflation. This makes many Central Banks in the world nervous. So when they see gold price rallies going out of hand, most of them step in and start selling gold from their huge stockpiles to make the prices fall.Get the Ultimate Swing Trading Software and learn this 10 minutes a day swing trading strategy that works for forex, stocks, futures, options and ETFs. Get this FREE Penny Stock Trading Report that tells the story of James Connelly and how he turned $1K into $1M in just 30 days with only 38 trades investing in penny stocks. Learn how you too can repeat this feat! Know this shocking Dow Futures secret that can make you rich.
This is precisely what happened when gold prices breached the historical barrier of ,200 per ounce. However, this fact that central banks tend to be sellers of gold during rallies in the gold market doesn’t mean that gold prices cannot rally for a significant period of time. What this means is that the days of straight up advances in gold prices though likely aren’t as likely as they once were. Bottom line gold is a tricky market.
Gold prices are heavily influenced by political crisis and political upheavals. In times of political crisis, gold prices tend to rally higher. South Africa is the world’s largest gold exporter. It accounts for more than 25% of the gold exports in the world market. South Africa is followed by Russia, United States, Canada, Australia and Brazil. Remember the California gold rush of 19th century. Many people went, many kept on digging and only a few found gold. Now the days of gold rushes are over. Almost all the gold mines have been discovered.
Inflation is considered to be bad for the economy. It makes prices go up. When prices go up, money loses it’s value. So many wealthy investors start converting their cash assets into gold and other assets that have a negative correlation with inflation. US Dollar and gold prices tend to move in opposite direction. Gold is popularly known as Anti Dollar. However, this negative corraltion relationship maynot hold in the short term but it definately does hold in long run.
There are many exchanges in the world where gold gets traded. The most popular is the New York Mercantile Exchange (NYMEX). The second most popular is the Chicago Board Of Trade (CBOT). GOld futures on CBOT have relatively low margin requirements. This makes trading gold futures highly attractive for retail traders. The international benchmark for gold is the London Price Fix. London Price Fix is quoted in troy ouncestwice daily known as A.M Fix and the P.M Fix and is set in US Dollar.
Mini contracts also get traded on CBOT. These are smaller versions of the regular contract with much lower margin requirements. Mini contract hold 33.2 troy ounces of gold as compared to the 100 troy ounces in the regular contract. However, the general characteristics and fundamentals of the market are the same. Gold trading combined with forex trading can be a lucrative combination!
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