Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Investing in the METAVERSE Stocks Universe - 8th Dec 21
Stock Market Sentiment Speaks: I Expect 15-20% Returns For 2022 - 8th Dec 21
US Dollar Still Has the Green Light - 8th Dec 21
Stock Market Topping Process Roadmap - 8th Dec 21
The Lithium Breakthrough That Could Transform The Mining Industry - 8th Dec 21
VR and Gaming Becomes the Metaverse - 7th Dec 21
How to Read Your Smart Meter - Economy 7, Day and Night Rate Readings SMETS2 EDF - 7th Dec 21
For Profit or for Loss: 4 Tips for Selling ASX Shares - 7th Dec 21
INTEL Bargain Teck Stocks Trading at 15.5% Discount Sale - 7th Dec 21
US Bonds Yield Curve is not currently an inflationist’s friend - 7th Dec 21
Omicron COVID Variant-Possible Strong Stock Market INDU & TRAN Rally - 7th Dec 21
The New Tech That Could Take Tesla To $2 Trillion - 7th Dec 21
S&P 500 – Is a 5% Correction Enough? - 6th Dec 21
Global Stock Markets It’s Do-Or-Die Time - 6th Dec 21
Hawks Triumph, Doves Lose, Gold Bulls Cry! - 6th Dec 21
How Stock Investors Can Cash in on President Biden’s new Climate Plan - 6th Dec 21
The Lithium Tech That Could Send The EV Boom Into Overdrive - 6th Dec 21
How Stagflation Effects Stocks - 5th Dec 21
Bitcoin FLASH CRASH! Cryptos Blood Bath as Exchanges Run Stops, An Early Christmas Present for Some? - 5th Dec 21
TESCO Pre Omicron Panic Christmas Decorations Festive Shop 2021 - 5th Dec 21
Dow Stock Market Trend Forecast Into Mid 2022 - 4th Dec 21
INVESTING LESSON - Give your Portfolio Some Breathing Space - 4th Dec 21
Don’t Get Yourself Into a Bull Trap With Gold - 4th Dec 21
GOLD HAS LOTS OF POTENTIAL DOWNSIDE - 4th Dec 21
4 Tips To Help You Take Better Care Of Your Personal Finances- 4th Dec 21
What Is A Golden Cross Pattern In Trading? - 4th Dec 21
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - Part 2 - 3rd Dec 21
Stock Market Major Turning Point Taking Place - 3rd Dec 21
The Masters of the Universe and Gold - 3rd Dec 21
This simple Stock Market mindset shift could help you make millions - 3rd Dec 21
Will the Glasgow Summit (COP26) Affect Energy Prices? - 3rd Dec 21
Peloton 35% CRASH a Lesson of What Happens When One Over Pays for a Loss Making Growth Stock - 1st Dec 21
Stock Market Sentiment Speaks: I Fear For Retirees For The Next 20 Years - 1st Dec 21 t
Will the Anointed Finanical Experts Get It Wrong Again? - 1st Dec 21
Main Differences Between the UK and Canadian Gaming Markets - 1st Dec 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

How to Start Trading on Gold Commodity

Commodities / Gold and Silver 2017 Nov 01, 2017 - 02:32 PM GMT

By: Submissions

Commodities Commodities and commodity trading have always been favorite instruments for many global investment managers. Automatically, the capital turnover that occurs in the commodity market is quite competitive. Commodities can be defined as goods that are physically substantial, such as agricultural and mining products. On the commodities, investors or traders can make a purchase or sale either through the futures market or a spot market. The commodity instrument is one of the few investment instruments in which participants with small capital can possibly earn decent profits in a relatively short period of time. CFDs on commodities are also popular, though finding a “place to trade” is something important, and capital.com is one of thereliabletrading platforms.




Commodities as a trading instrument have a high risk reputation, especially for individual investors. In fact, the risk of trading in the commodity market will not be more than the risk you have set yourself. The rest is a matter of risk of price movement, which tends to equal the risk of other asset price movements such as stocks or bonds. Investors need to carefully recognize and monitor the factors that drive prices, such as taxes, inflation, interest rates, weather, transportation and technology costs, each of which has different effects on each commodity.

In general, commodities are divided into two large groups, the first one is hard commodity which is generally the result of mining such as gold, silver, oil, and other commodities that have limited resources on earth and generally require high resources and funds to obtain it. The second group is called “soft commodities” - those are the products of agriculture such as sugar, chocolate, coffee and others. As the many types of commodities traded on the world market, our focus in this article is limited only to one of the hard commodities, namely, gold. The gold can be traded on the spot, futures, options or cfd markets, generally in the form of contracts.

Supported by history

History notes that the metal has had a high value since ancient times, especially precious metals such as gold and silver which for centuries have become a medium of exchange in trade transactions. Gold and silver by most investors are still regarded as a good investment field that continues to shine.

How to invest in gold

Through technological developments and commodity trading, gold can be invested in through various means as well as with extensive product coverage such as Gold Bullion, Gold Certificates, Gold Accounts, Gold Exchange Traded Funds (ETFs), Gold Mining Shares and Gold Mutual Funds. Another way of speculation on gold price change is through cfd trading.

There are at least two popular sections of gold trading:

Gold Bullion
You can buy gold commodities directly in the form of bars or coins. If you buy gold bullions or gold coins, you are dealing with physical gold. In this case, caution needs to be take place, especially regarding storage and insurance.

Buying gold physically was a popular way of investing centuries ago. These precious metals provide assurance to investors that the value of these assets will never be worth zero, as is likely to happen to stocks or other financial instruments.

Gold Certificate
Buying a gold certificate is one way to own gold indirectly. You will only hold the certificate without holding the physical form. Investors will benefit from security and storage issues. However, this way is still not popular in the eyes of investors because they still do not feel to have gold if it does not have a physical form.

There are many other methods that can be used in gold trading but learning the above two methods is the first step for anyone who is really serious in trading.

By Anne Bago

© 2017 Anne Bago - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in