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Investment in gold. Advantages and safety

Gold trading and investment has become one of the most important types of trade specially with these economic fluctuations, because of its profitable returns. And as it’s as a precious currency and not just metal, gold can be bought and sold directly through electronic trading over the Internet.

Factors affecting the price of gold

The price of the yellow metal is influenced by many factors that each investor must take a full care of them, surrounds and studies them thoroughly. For example:

  • Financial crises
  • Supply and demand of gold
  • Political events and wars
  • Affected by reducing or increasing production
  • Economic data published by the United States of America
  • And the political, economic and social changes of producing and consuming countries

Supportline Management provides sufficient information to investors about these factors to be fully aware and investors should also be careful and not reckless.

Safety standards

Gold is a safe way to invest as it keeps its price over time even through economic, social and natural disasters.

Although it is affected by these factors, but this is a slight impact compared to the rest of the currencies that can reduce prices and suffered heavy losses.

The demand for gold is increasing, according to the opinion of most financial analysts around the world, stressing that gold will achieve great success in all markets and trading at this stage is an opportunity will never compensate.

And now because of its current low prices and the movement of financial markets, everyone is asserting that prices will rise to the sky.

The relationship between gold and currencies

There is a direct relationship between gold and the US dollar as they are mainly linked to their negative relationship, that is, gold is directly affected by most of the data and events affecting the US economy. Therefore, the price of the dollar can be taken as an indicator of the price of gold. The market price of gold and vice versa.

Why to invest in gold

Of all the precious metals, gold is the most popular for investment. Investors generally buy gold as a way to kill risk, especially through the use of futures contracts, gold coins and derivatives, however, direct trading in global markets is the best and fastest type of investment.

The gold market is subject to speculation and volatility as are other markets but compared to other precious metals used for investment, gold has the most effective safe haven and hedging properties all over the world.

And this is the reason makes the strongest economic countries in the world like USA, China and India are the largest consumers in yearly volume demand, In addition to pegging their currencies to gold to ensure financial stability.

Investment in gold is considered one of the safest types of investment with unmatched financial return. It never lost because it is one of the non-renewable natural resources created by God. It is not subject to certain countries or markets, and is not related to companies or governments. For all these reasons, investing in gold usually helps the investor avoid the problems that can occur in the economic environment.

Why you should always invest in gold

With stock market changes and weak economic performance, many investors were interested in the idea of investing in gold itself, especially when gold was the main headline after its low price.

Investors are always talking about the need for a diversified portfolio to help them protecting themselves against falling stocks and losing money. In this case gold is a strong investment, as gold is negatively associated with the US dollar, so when the market crash, gold will perform very well.

It’s expected that US Federal Reserve to continue printing money to repay its debts and this will lead to huge inflation, but gold investors will be protected against that, against devaluation and protection of its fund. Where it will always be pure gold strong value in the market.

But it will be too late when people realize the importance gold investing. Gold investing must be held in advance to be available when needed. Waiting until the fall of the market means that gold will have already reached the highest levels and buying in this case will not do anything good for investors.

How to take profits from gold

First:
The profits come from the exploitation of price differences between buying and selling, which occur due to the markets fluctuations and therefore the investor should know the best time to buy and best time to sell.

Second:
Full knowledge of the working times of the markets that affect the price of gold, which will cause the prices movement, and that should be exploits by the investors to buys and sells at the right times.

Third:
Study the other markets affecting the movement of gold prices such as the US, European and Asian markets then follow the economic news in the markets, such as interest rates and financial inflation of central banks because of their significant impact on the movement of prices.

Fourth:
Having full knowledge of how to manage capital, quantity, ratios of buying, selling in addition to following a risk management strategy.

Finally, Supportline Management provides all its customers through a team of high degree of efficiency, full knowledge and long experience in the markets, which invests on behalf of them in their accounts to buy and sell and achieve minimum monthly profits.

Risk warning: Trading foreign exchange and/or contracts for differences on margin carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss in excess of your deposited funds. Please refer to specific risk warning for each regulated entity during the account opening process.