subject: What Shrewd Investors Should Know About Gold Investment - 7 Things [print this page] For a long time, gold has been and continues to be a popular investment option. Return on gold investment is high which is why shrewd investors prefer trading in this precious metal.
Here are 7 things you should know about gold investment -
1.New York and London are the major markets that trade in gold through the day. Other markets in the world too trade in gold 24 hours such as the Zurich Market and King Kong Market. Different factors influence the price of gold and this metal is traded in markets that function similar to the stock exchange.
2.Around the globe, the forum of gold producers is called the World Gold Council. This body is engaged in spreading awareness among people on the advantages of investing in gold and also provides valuable information on types of gold investment. Stakeholders, consumers and small scale producer's traders are governed by guidelines laid by the World Gold Council that is headquartered in Geneva.
3.There are many advantages of investing in gold. Apart from being a stable investment, gold can anytime be converted to cash. You can carry your gold bars and coins wherever you go. Calculating the value of gold you hold is easy as gold market is directly governed by the stock market.
4.As compared to other precious metals, gold offers numerous advantages. For example, investing in platinum carries more risk as compared to gold and gold can be converted to cash easier than platinum. Similarly, comparing silver and gold, silver offers lesser financial gains as compared to gold.
5.There are many factors to be considered if you have decided on investing in gold. As the investment in gold is huge, it is important to take informed decisions. It is a good idea conducting thorough research before adding gold investment to your portfolio.
6.Price of gold is predominantly determined through supply and demand. As investors tend to hoard this precious asset, price of gold may remain stable or even increase even during wars and inflation.
7.It is a good idea learning a few gold investment strategies especially if you are planning on long term trading in this metal. Some investors tend to invest in gold the moment they find a price increase. This is because they believe that price will go up further enabling them to make more profits. Some others may purchase gold when the price goes down and wait for the price to increase before selling and making a profit. Some carefully research on price trends and make their decisions accordingly.
Keep all the above factors in mind as you start trading in the highly lucrative precious metal, gold.
by: Adrian Getty
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