Gold is the safest investment in the long term, because it has a predictable behavior. Any investor with some notions about the trading market knows that gold will increase in value in times of recession, and it decreases when the economy is booming. When stocks become unsafe, investors will look for the only active that preserved its value along the history of humankind: gold. When the economy is solid, the stocks of different companies will become more attractive. This is why people will liquidate their gold deposit, and they will buy gold. Some people prefer to keep their money in gold all the time, because even if the value of gold is smaller at a certain time, it will grow eventually.
Trade gold in binary options: When to do
As the binary options are short term investments, the long term investment plants in gold are not recommended. However, this does not mean that money can’t be made if you trade gold in binary options.
The price of gold knew long periods of rapid value falls, and this scenario must not be ignored. However, we all know that making money in binaries on a decreasing active is not only possible but also recommended. When you see a descending trend in gold, you might consider opening a position in binaries, with a smaller exit price. However, in this case, the technical analysis is useless. You know that the price of gold will go down, simply because it is doing so for the last two months, but you don’t know how much this will last.
What do you need to know if you want to trade gold in binary options is that gold trading in binaries is of many types. Even if you will trade gold as an asset, the way you do it and the expected results are different.
Gold Prices in 2015
Real gold
Investing in gold “nuggets” is the safest type of gold investment. If the financial system will collapse, people that have gold investments will survive. It is not recommended in binaries because it comes with increased costs, and it is not a short term investment. Moreover, the real gold means depositing costs that are only recommended if you plan to invest serious money in gold.
Investing in gold as a financial active
It is the best method to trade gold in binary options, as you don’t actually own the gold. Moreover, if you anticipate an increase or decrease of price, you can safely open a binary position based on your anticipation.
The best binaries on gold are the futures contracts, as you only block a part of the money on the spot market. You will have to supplement the sum if the market does not work as you expected, by putting new binary options. However, the system is still safer compared with other methods of investing in binaries, Trading gold with binary options might be the trading method of the future.
Best Binary Options Brokers to trade Gold
Gold Prices
Till 1975, there were two tiered pricing system for gold. While international accounts were allowed to be settled at $35 per troy ounce and in the private market, it was allowed to fluctuate. Only after 1975, gold prices were set free for the market to determine. Thereafter, prices were increasing. When US dollar weakened during the historic market crash, gold price reached its peak at $1,217.23 in 2009. In 2011 it reached $1,432.57.
Major gold exchanges are in Zurich, Sydney, Hong Kong, London and New York. “London Fixes” are the prices fixed at London twice daily. This serves as the guide post for trading of this yellow metal, around the world. There are various other country specific exchanges, where the live prices of gold are determined for that country.
Trading in live gold prices
Trading in gold went online with traders met through internet and the price of gold was arrived without the interference of any institution or organization. Trading in live gold prices can be made in many different ways like futures exchange, trading CFD’s, gold ETF’s etc., Investment in gold is done in the similar lines of foreign currencies.
Trading live gold prices requires a lot of research and expert advice. Predicting gold in any form and for any period is difficult even with scientific methods and technology.
An aspirant to trade in live gold prices should choose a broker. Choosing a broker is the second most important factor after research for successful trading in live gold prices. While choosing a broker for trading an aspirant should take in to account the following considerations:
- Technology used
- Low margin
- Popularity
- Modern tools offered to assist in trade
- Live Tips
- Availability of multiple products
Also, a trader should give weightage to availability gold prices in multiple currencies.
After choosing a broker, an aspirant should initially work on the demo to get acquainted with the mechanics of trading live gold prices. The first and foremost an aspirant should do is to trade low initially. He or she should trade in the cheapest form like bars, krugerrands and sovereigns. Bars of all can be bought at lowest premiums. Many recognize coins like sovereigns and krugerrands so they can be sold easily. While dealing with bars an aspirant should go for smaller lots. But they will be little dearer to buy. Initially, an aspirant or trader should avoid expensive buys. So a trader in live gold prices should buy when the market is low.
While comparing across the gold products an aspirant or trader should compare as a percentage of the gold content and not absolute prices. If a trader feels a situation is right time to buy should act immediately and should not wait for an ideal situation or price to hit the rock bottom. Precise prediction often eludes even the experts. Investment in gold can be in the form of accounts, futures, mining shares etc. While trading live gold prices a trader should take note of differential premium between the different forms of gold invested.
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