If you are an investor who is closely interested in the commodities market and in particular precious metals, then gold is certainly an asset that may interest you, and this for several reasons. The first point of interest when it comes to trading gold is that its value is highly volatile compared to other stock assets. This means that the movements registered by the price of gold are usually very wide and allow short-term strategies. But this also presents a greater risk gold ira companies reviews.
While gold is no longer considered a safe haven, it remains a preferred investment for institutions such as banks, particularly in periods of high inflation, as gold is not sensitive to this factor and continues to hold level while currencies they lose value.
Finally, let us bear in mind that gold is an asset that reacts a lot to the phenomenon of supply and demand. It is therefore possible to negotiate with this long-term value, based on the fact that production is currently reaching its limits, while demand may still be increasing given its use in the industry, particularly the Chinese industry, which is in full expansion.
As you no doubt already know, gold is considered a safe haven in the investment world. This means that it tends to hold its price or even gain value while the other financial markets encounter difficulties. This was the case at the beginning of the 2008 economic crisis, with a real boom in the price per ounce, which also happened recently during the Covid-19 crisis.
In this sense, both long-term and short-term strategies are possible with gold. In any case, it is preferable to buy gold at the right time if your investment horizon is longer than a few years, that is, buy when its price is relatively low and therefore more susceptible to earning points.
To trade long-term gold, you often buy physical gold, whether online, at a bank or at a gold dealer, always keeping in mind the costs of storing and preserving your gold. It is still possible to take a long-term position in the gold market using CFDs, but in this case, it is preferable that there is no leverage.