Wednesday, March 21, 2012

Gold trading history

Gold trading history - Dubai Gold Trading


All over the history, gold has been highly valued  in Middle East and all over the world for jewelry, coinage and arts. Gold has been long considered a unique store of significance and symbol of power, wealth and class. Since April 2001, it has doubled more than four times its value.

The price of gold has been rising over the years, making this precious stone more and more appealing to investors. A number of investment brokers have included gold in their list of investment products. There are also companies that make buying and storing gold easy and affordable to a wider demographic. Beginner and experienced investors alike can find quick profits through selling, buying and trading gold at any time.

Many investors buy gold as a hedge against economic downturns, political crisis and other situations that can depreciate the fiat money and other forms of investments. Even financial experts recommend investors to include 10% to 25% of precious metals in their portfolios. Dubai Gold trading provides a reliable safety cushion against the effect of inflation. Unlike currencies and other investment products, gold is more reliable and considered to be less affected by inflation.

Methods for Dubai Gold Trading

There are different ways to do Dubai gold trading. Traditionally, this is done by buying and selling the physical metal after a substantial price gain which means having to wait for a certain period before buying or selling it. This system was distinguished by high levels of price speculations. Nevertheless, the recent development in gold trading - thanks to the advent of the Internet - has resulted in a more effective trading method which no longer requires the traders to possess the physical gold. This method is possible by getting an account with an investment broker. These brokers connect traders to the gold markets via a special kind of platform which come either as a web based program or desktop software.

The rising of gold prices can significantly affect currency prices. Higher prices of gold can be considerably imperative to the currencies of major gold producing countries such as Canada, South Africa and Australia. When trading with gold, it is highly advisable to keep an eye on economic and political situations as these can affect the prices of gold.

The Advantage of Dubai Gold Trading

Perhaps the major advantage of trading with gold is its high liquidity. Regardless of whether a trader is dealing with the physical gold or not, he or she has the opportunity to take advantage of its high level of liquidity. Although the gold’s level of liquidity is considerably lower compared to currency trading, it certainly has a large following of traders because of its huge potential. Any trader who wants to build up his investment experiences should consider adding gold to his portfolio.

Checklist before starting Gold trading

Checklist before starting Gold trading - Dubai Gold Trading
Over the past ten years, there had been a remarkable increase in interest in gold as a form of investment and safekeeping. The value of gold is one of the most widely debated topics in the commodity market. A lot of investors are just beginning to discover the ability to trade gold within the Forex market. Prior to the 1990’s, the Forex market was mainly an exclusive investment medium that was accessible only to the large banks and financial institutions. Today however, the ability to trade gold against other currencies and mainly the US dollars is now possible for individual investors. Thanks to the advancements of the Internet.
Before you trade or invest in gold, there are a few rules that you should put into consideration concerning the value of gold. Here are some points you should take into account before choosing right broker for Dubai Gold trading:

Analyze the Trend

Studying the trend is one of the most efficient ways to understand the latest news in the industry. When trading in the Forex market, you need to be updated with the latest information as these can be used to forecast the future market conditions such as the movement of Dubai gold prices as well as the world market. Although it sounds easy, a trader still needs to consider various sub factors such as political activities in different countries as well as the trader’s own. These factors will greatly influence trading in a global scale.

Manage Risks

Just like any other investment product, there is a lot of money involved in gold trading so it is therefore always important to play it safe. Know how much you want to make and how much risks you can tolerate. You can do an intensive research on the market and develop a systematic plan rather than act carelessly. There are ways to assure yourself that your investment reaps great rewards for you.

Diversify Your Investment Portfolio

Any trader who wants to expand his investment experiences should diversify his or her portfolio. This is another way to manage risks since it allows traders to provide stability by allocating their investments into multiple forms. Diversifying portfolios prevent investments from losing all at once. So in an unfortunate circumstance wherein the gold market took a major downturn, a trader still has something stored to recover from his losses.

Improve Your Investor Knowledge

Investing and trading is a lifelong learning process. Because of this, it’s crucial for investors to be passionate on their trade. The best way to come up with excellent trading strategies is to learn from investment experts and professionals on trading precious metals. As long as you implement the right strategies, you can get benefit from gold trading the same as any proficient trader or investor.

You should also have thorough knowledge about Forex in Dubai