8 Types Of Gold Trading

Gold Coins - A Reliable Investment

If you take a look at the gold market, you will know that its price is increasing day by day. Though gold is not used as currency, it plays a vital role in the economic progress. Another benefit is that this market is pretty stable when compared to shares and stocks. You don't have to monitor its price all the time wondering when the market is going to crash or take a plunge. In general, gold rate is pretty much stable, and have an increasing trend. Thereby, it offers a lower risk in the investment when compared to other ventures like shares.

Another advantage of buying gold online is that they are very easy to store and transport. Unlike land, house, or other investments, safeguarding investment in gold is pretty easy. They can also be converted to any ornament when required. So, if you are investing for your daughter's marriage, you can buy gold coins or bars whenever you can and use them to make jewelry when the wedding is fixed.Article Source: http://EzineArticles.com/7096579

What Is Gold Worth?

The real question that bothers most economists is the Demand side of the equation. Demand is a force that is supposed to be driven by "need" or an ability to take a raw material (like Gold), combine it with knowledge, and create something practical that people have a need for. The problem with gold is that it is almost never practical. It is an inferior metal in terms of strength, durability, and even polish. There are many other types of metals that are vastly superior in every aspect... yet our world feels this desire towards gold.

Economic theory would argue that after time, people would realize the lack of value in gold which would lead to decreased demand and in turn, a decrease in price. However, gold is at approximately an all-time high and shows no signs of slowing down.

Perhaps on some level this increased demand for gold is another sign of our ever-present need for luxury. Or perhaps gold has just had such a long-standing reputation as a "status symbol" that it could take another thousand years before we fully realize the lack of value evident in gold.Article Source: http://EzineArticles.com/7110432

8 Types Of Gold Trading

pot Trading

This is a form of gold trading that involves holding a position on gold as well as an opposing position on the U.S Dollar. You are simply trading the inverse price moments of the US dollar and this precious metal. Meaning, if you grab a long position on this precious metal, then you will be holding a matching short position on the US Dollar and vice versa.

Binary Options

Binary options, also known as digital options or fix odds options trading. This is a form of trading that involves the buying (call option) or selling (put option) of a contract for an asset to benefit from a price increase (for buy) or price reduction (for sell) at the time the contract expires.

Gold Exchange Traded Funds (Gold ETFs)

You can trade this precious metal by way of ETFs. The stock exchange is usually the venue where you can trade this financial instrument. ETSs are really a type of investment fund that are comparable to a mutual fund yet different since they are more aggressive. The ETF is generally composed of a portfolio of a number of different financial instruments.

Article Source: http://EzineArticles.com/7122965