Gold trading has a long history from ancient times where gold was first used as a currency; gold has been considered a symbol of power, wealth and strength throughout history. Approximately 65% of the gold in the world has been mined since 1950 and since then gold is based on exchange and continues to affects on world financial markets today and it will into the future.
Trading gold futures, nowadays allows to make investments with little capital, as brokerage firms offer good leverage.
The price of gold refers to its price per ounce in USD, and is measured in troy ounces; Online Gold Trading gives traders the possibility to short sell and benefit from a falling market. A gold investment is a Safe Investment for a trader with a low risk threshold as is often called one of the safest investment options during tough economic moments.
As trader, you will be able to take advantage of high liquidity when trading gold, Online Gold Trading can be executed 24 hours a day, 5 days a week, gold is virtually relentless and as a result, it has high returns on investment income.
Traders are taking advantage of Online Gold Trading and other types of trading to enhance their opportunities for profit. Both activities help traders on increase profitability and improve portfolio diversification. Gold's extremely high volatility, results in sudden and ample movements and thus allow for substantial short – term profits.
On the other hand, investing in gold also has some risks.
The physical Risk of Gold is that gold bars and coins expose the investor to the risk of loss and theft. Transport of gold and insurances are counted as extra costs involved mitigating that risk. Also, exchange risks refer to the exchanges where gold and futures are traded and not to currency risks. New York Mercantile Exchange and Tokyo Commodity Exchange are the two major gold futures exchanges, trading at these exchanges and all other exchanges are subject to their regulations and can on purpose or accidentally foster market outcomes by changing their trading rules.
The political risk of gold trading means that the government can change regulations and laws that may harm the investments in gold. Supply and demand can be affected if government interventions happen in the county of the investor or in another country.
Gold Scams are also categorized as a risk, downright fraud, misrepresentation and market manipulation area scams that any trader has to be aware of and therefore be able to anticipate and avoid them.