Gold is a precious metal that is prized for its rarity and beauty. It is also valued as an excellent investment option to diversify portfolios, hedge against currency inflation and devaluation, and protect against volatility and risk. There are many different ways to invest in gold and potential reap high rewards. Read on to discover the various forms of gold:
Gold nuggets are fragments of gold found in nature. They may be uncovered through mining or gold panning. Most are generally quite small, only a few ounces. They have unique and asymmetrical natural shapes. The largest ever nugget ever found is the Hand of Faith, a sixty pound nugget found in Australia in 1980. Gold nuggets may be used as a form of investment, but this is not typical. Instead, nuggets are usually melted into molten gold and refined into jewellery, coins, or gold bars.
Gold is often melted down and formed into attractive rings, necklaces, bracelets, and earrings. However, it is usually alloyed with other metals like copper and silver. Solid gold is a far better investment and trading gold as currency offers far better reward, but gold jewellery certainly has sentimental and aesthetic value.
“Bullion” is the term for physical gold that is stored in bar or coin form. This is the most traditional form of gold investment. However, there are disadvantages to using gold bullion as a form of investment. For one, you must be wary of counterfeit gold and inspect to make sure you have not been duped. Additionally, when you invest in physical gold, you must pay transportation and storage costs, which can add up over time. You are also vulnerable to theft and have less liquidity should you choose to sell some gold bullion.
Exchange-Traded Funds (ETFs)
You can benefit from gold prices without having to physical possess gold thanks to exchanged-traded funds. These instruments are traded like shares on the major stock exchanges. They are a simple and versatile ways to diversify your portfolio with gold exposure, but do not have the convenience or accessibility of gold trading on the currencies market as they operate under limited stock exchange hours.
Gold Forex Trading
You can also trade gold as a currency on the foreign exchange market. This offers many of the same benefits of ETF trading, but with increased accessibility, convenience, and liquidity. Gold is traded against other currencies like the euro, the US dollar, and the yen. With a keen eye, there is tremendous reward potential in gold trading on the forex market.
It is no secret that gold presents an exciting investment opportunity. Join some of the world’s greatest financial minds by adding gold trading to your portfolio.
How to Trade Gold?
Take advantage of the daily changes in the price of gold. Start trading gold today by opening a trading account with easyMarkets and get up to $2000 bonus*. As an industry first, they have also launched a unique deal cancellation tool as a way to manage your risk on any bad trades. By selecting dealCancellation on the trading platform whenever you make a trade, you can cancel your losing trade within 60 minutes and get your money back. *Terms and Conditions Apply
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