Trading The Gold Market
If anyone regularly trades the gold market they will know that any Dollar negative news often translates into support for higher gold prices
. This is not a surprise when the key gold market is traded in US Dollars per Troy Ounce.
So even without supply and demand affecting the price of gold, the market can swing purely on Dollar exchange rates, for example:
The prospect of low interest rates in the US makes gold a little more attractive. Note that low interest rates tends to make a currency weaker compared to currencies where the interest rates are higher
Chinas reserves contain hundreds of billions of US Dollars. Every now and again China will release Dollar negative rhetoric suggesting that they will sell some of their huge Dollar reserves. That naturally reduces the price of the Dollar and again supports the price of gold
The question is, what should you do if you want to explore the gold market a little further?
Perhaps you are interested in making some small trades. Although note that the word small is relative. Even with the trades we are about to discuss you would need to deposit 100-200 Euros / Pounds / Dollars before trading.
One of the most convenient forms of trading gold is via Financial Spread Trading. The number of trading opportunities, easy access to world markets and the speed at which you can trade make it an option worth considering as part of your investment strategy.
Of course, any investment provides opportunity for making a loss. Share trading, buying a house and exchange traded funds can all lead to losses. With spread trading, these losses can be larger than your initial stake.
Having said that, spread trading does solve a lot of problems when it comes to tax, simplicity and range of options. There are some useful benefits.
1)Being able to 'short' a market provides interesting opportunities. You do not have to speculate on markets to go up. If your research suggests that the price of gold will go down you can speculate on it to go down. If your research indicates that the gold market will go up then you can spread bet on it to go up.
2)Spread trading profits dont incur capital gains tax*.
3)Investors who speculate on stocks and shares in the traditional manner generally incur commission charges and/or broker's fees. With financial spread bets there are no such fees.
Before trading though, ensure that spread trading matches your investment objectives. Spread bets carry a high level of risk to your capital. Familiarise yourself with the risks involved. Seek independent advice if necessary.
So where to trade? The Financial Services Authority regulates the
spread betting companies based in the UK. Naturally, as a consumer, you are generally better off trading with the regulated companies.
Also, a number of spread betting firms offer the usual benefits of letting you trade outside market hours. Some offer trades on thousands of global markets. Some companies, like
InterTrader and Financial Spreads, will also let you trade markets such as Gold, FTSE 100, DAX 30 and Crude Oil from Sunday evening all the way through to Friday evening. Genuine 24 hour trading.
* Based on current UK and Irish tax law. Tax laws may vary if you live outside of the UK or Ireland.
by: Robert Thomas
How To Get Results You Want From Your SEO Marketing Campaign? Hosting Tips, The Importance Of Web Hosting For Interactive Marketing Fyffes Plc - Swot Analysis - Market Research Reports On Aarkstore Enterprise Multivitamins - the Truth Behind all the Advertisements & Marketing How To Use Video To Market Your Products And Services Some Important Tips For Successful Telemarketing Freelance Work Is More Profitable Production And Market Of Zinc Acetate In China----aarkstore Enterprise Brookfield Asset Management Inc. - Swot Analysis - Market Reserach Report On Aarkstore Enterprise. Managed Forex Accounts - the Sure Means to Profit From Forex Production And Market Of Sodium Acetate In China----aarkstore Enterprise Mylan Inc. - Swot Analysis - Market Reserach Report On Aarkstore Enterprise. Koch Enterprises, Inc. - Swot Analysis - Market Reserach Report On Aarkstore Enterprise.