Top 3 Gold Trading Tips – How You Can Create Wealth With Gold

You will find several techniques which you can invest in gold, so here are 3 gold trading tips that will genuinely help you to protect, save and increase your money in times of economical uncertainties.

Gold trading tips #1: Buying physical gold

One of the most effective ways to invest in gold is acquiring gold coins and bars. Several people also buy gold as they love the feeling of touching them, especially gold bars as they represents prosperity. Gold bars and coins possess actual money value that you may buy and sell for cash anytime you require the liquidity. And it’s constantly attractive by the appearance of itself.

Since it is so precious, you would have to store it really safe. You may want to store it under your bed, in your safe deposit box or even store it inside the storage space from the company that you purchased the gold. For those storage space made available by the company, you will need to pay for their storage fees.

Although making an investment in gold bars and gold coins might be less riskier than gold stocks and can provide a steadier returns, it could take several years to see those returns. While holding gold might have fantastic returns over a few years, it will take that similar amount of years before you will enjoy the profits. Examples of the recommended gold coins are Canandian Maple gold leaf, American Eage gold coin etc.

Gold trading tips on online gold trading

It’s among the easiest as well as cheapest means to trade gold online. First and foremost, you will not need to get real gold and worry about storage and secondly, you have leverage offered from brokers so you don’t need to have a huge amount of capital to invest.

When the gold market is now on an uptrend, you would like to buy the gold contract when the gold price drops a little. But if there’s a case where a huge event occurs and gold price collapses, you could sell the gold contract and still earn profits. The symbol in gold trading is represented by XAU/USD and the only cost are the spreads which can range from 50 to 70 pips for most brokers. Other than that, the profits may come faster than physical gold as you can take smaller profits just like trading.

One thing to note is that many people failed in spot gold trading simply because they over-leveraged and don’t take money management in hand. That is the mistake that you must not make if you want to earn steady income from it.

Gold trading tips #3: Diversify your portfolio

Many people believed that they could be profitable if they solely invest in one sure winning instrument. There’s virtually no sure-win instrument but only vehicles with higher probability of winning.

It’s important that you diversify your portfolio so if one investment do not perform well, you have others which are making you money. In this instance, you’ll not be affected too much in a volatile market. For instance, you might want to invest in 20% in gold mining stocks, 30% in gold bars and coins and 30% in online gold trading.

If your portfolio becomes bigger and also have more capital, you can reinvest in those vehicles once again as it’ll add as a compounding factor and makes you more money.

Above are the 3 gold trading tips which will serve as a helpful guide if you are looking to invest in the gold market. Use the information above and you should notice significant returns from your gold investments.

Gold and Forex References:

Is Online Gold Trading More Profitable Than Foreign Exchange Trading?
3 Gold Buying Secrets – How To Make Money With Gold

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