Gold Trading has a long history dating thousands of years, and has been a basis for currency for just as long. Many investors like the idea of gold trading because it is a commodity that has intrinsic value, and will never be worth nothing versus the dollar which is a fiat currency. Bullion is a precious metal that has a fundamental value.
In 2005, it was estimated that the total world supply of gold was 3,859 tonnes, and the current demand was 3,754. This means there is currently a surplus of just over 100 tonnes. The largest amount held anywhere in the world is held in the underground vault at the Federal Reserve Bank in New York, which holds approximately 3% of all the gold ever mined. The second largest amount is held at the United State Bullion Depository, which is located at Fort Knox, Kentucky.
As with FOREX, or the currency market, the central banks and the International Monetary Fund (IMF) play a great role in determining the trading or spot price. The universal price is called the London Gold Fixing, and it is considered to be the benchmark for all international pricing. It is decided up twice daily, out of London, and the rate is developed between the largest 5 bullion trading companies and priced per the ounce. Prior to the current bull run we are experiencing, the all time high price was $850/ounce, and that record was set on January 21, 1980. Lately, the spot gold price has climbed to over $1400 an ounce with many speculating that it has higher prices still to come.
Trading Tips
Learn to trade gold online using the forex market and discover for yourself:
- The Worlds Largest Market. The Forex Market.
- How to profit from trading with leverage when the price is up or down?
- No commissions trading (pay only the spread).
- How to profit through forex regardless of the world economic situation?
- The power of leverage.
How would you like to learn about online gold trading and leveraging silver or crude oil with 100:1 buying power? That means you could trade 100 ounces of this commodity for as little as $1,000. With a Forex Platform you are able to buy gold, silver, oil and all the major currencies. You can try it out by opening a demo practice account, or by opening a live account with as little as a few hundred dollars.
How to Buy $10,000 of Gold
With a Few Hundred Dollars
The Attraction to Gold
Over the past ten years there has been a dramatic increase of interest in Gold as a form of investment and safekeeping. Many investors are just beginning to discover the ability to trade gold in the forex market. Prior to the 1990’s the forex market was primarily an exclusive investment vehicle that was dominated by.....continued
As the old expression goes, most people don’t plan to fail, they only fail to plan. Having a game plan is crucial to your success as a gold trader. You need to understand why you are getting into a position before.....continued
It is extremely frustrating to see your trade go against you and eat away your money. All it takes is one bad trade to wipe out a week or even months worth of earnings if you did not protect your capital with a stop loss. Likewise, it is painful to watch......continued
Let the trend be your friend as a trader and plan your trades for the big moves rather than the tiny intraday moves. You can drive yourself crazy by trying to make a few bucks here and a few bucks there every five minutes. Take the time to analyze....continued
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