The ancient Egyptians first smelted gold around 3,600 BC. Thousands of years later, gold is still a very highly valued commodity in today’s contemporary society. Humankind has always had a deep fascination with gold and the desire to own this precious commodity has even resulted in wars and deaths in the name of gold rushes in various gold hotspots in the world.
Today, people seek gold not only because it is a great investment in a contemporary jewelry market, but also because it can be utilized for a broad array of applications. Gold is similar to any currency; it is durable, widely accepted and portable. The gold bug still bites people as is evidenced by Discovery Channel’s hit reality show Gold Rush: Alaska. Borrowing money to start your investment strategy using a car title loan may not be a good idea so if you are really interested in getting in on the modern gold rush, here are some tips for trading gold that make sense:Find the best way for you to trade gold
Gold can be traded in a number of ways so it is vital for you to find the best option for you. Some investors prefer to hold on to the physical gold so that they can access it whenever they want. Although this will give you the peace of mind needed to look for clients and trade comfortably, it can be ridiculously expensive because you will have to factor in transport, storage, and protection costs before you can offload it.
If you do not want to deal with the hassle of selling physical gold, you can find a reasonable proxy for it such as gold exchange-traded funds (EFTs), which can allow investors to trade for it electronically just like they do with other financial assets.
Plan to keep up with gold prices
Although gold is one of the best commodities there is, it can also be incredibly tricky to trade. Gold has a daily range that can vary; it is not uncommon to have 300-500 pips on one day and 160 small ones the next. Because of this, gold prices are extremely volatile and difficult to keep up with. The speed by which the gold prices can rise and fall require a gold trader that can plan accordingly, as well as make smart decisions quickly.
Stick to your plan
If you want to avoid mistakes when trading gold, which are often irreversible, by the way, it is critical that you develop a plan and stick to it. If you are not an experienced trader or if you do not know how to identify the best areas or moves around them, common avoidable mistakes such as shooting from the hip or revenge trading can cost you dearly.