What are the advantages and disadvantages of trading in gold?

Of course gold trading like any other trade, it has many advantages, and many disadvantages, and if you want to trade in gold you should know these things so that you can make the right decision, whether you will trade or not.

Advantages of trading in gold
1 - The safety of the gold trade as gold is not a commodity sold and bought anywhere, as well as effectiveness, because the whole world traded in gold.
2 - Guarantee the capital permanently, as long as the alloys exist, it means that the capital is present with you at any time. 3 - effective profit, since when you trade in gold, you are not forced to sell at a certain moment, so you can wait as you like until the price of gold rises, and when it reaches the price you wish, then you can make the sale.
4 - the validity of the product always, and we have talked that what distinguishes gold is that it is not affected by external factors and therefore always remain on the luster and validity at any time, and you can keep it without feeling afraid.
5. When you trade in gold alone, you are in control of the decision and manage the gold as you like, so you can set the right time to sell or buy as you wish.
6. You can easily prove ownership whether you are a seller or a buyer, because your product is a tangible product.

The disadvantages of trading in gold
1 - Sales or purchase in terms of trading in gold is slow, and you are always forced to wait for the world markets, whether to lower the price of gold you can buy, or to raise the price can sell.
2. As gold is a global trade, when you want to trade in gold you will be required to look in different markets, so you can find the right price to sell or buy.
3 - Look for multiple traders so you have different sources you can resort to in the sales or purchase, when you trade in gold you need to always multiply traders so that you can know what happens in prices renewed.
4. While buying or selling in the gold trade is slow, prices in the market can change at any moment depending on the factors that influence it. Of course, any sudden rise or fall will affect you negatively, either in buying or selling .
5 - Difficult to complete the storage process, because the gold commodity is always prone to theft, when you trade in gold if you decide to keep it at home, may be subject to theft, and therefore resort to store it in a company or bank, or even prepare a safe to keep, This costs you a lot of money and risk.
6. Long-term profit Although the gold trade is very profitable, it takes a long time, so you can not make a daily or near-term profit, but wait.

Now that you know the appropriate ways to trade in gold in different types, and also what are the advantages and disadvantages of trading in gold, you can make the right decision, if you leave the subject for its difficulties and risks, or if you choose to complement the way and trade in Gold in the form you can estimate. If you continue on the road and begin to trade in gold, you must always be careful and committed to safety, as well as patience so as not to find yourself losing at any moment, and in the end, trading in gold profession always need to reason and good behavior and patience, if you own these things , And possess the necessary ingredients and the ability to trade, start from now.

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How GOLD Is the Perfect Insurance from Stormy Stockmarkets

IN TIMES of economic uncertainty, investors have always turned to gold.

It is renowned as a storer of value, the one asset that will consistently ride out soaring prices and volatile stockmarkets. Unlike almost any other commodity, its price isn't affected by inflation and is not linked to shares.

And if fears over the Chinese economy, a drop in growth of the emerging economies, or prolonged periods of low rates in the U.S. are realised, it could soon be the asset of choice for investors again.

If you own it already -- whether through a fund or because you've bought jewellery or a gold bar as an investment -- then you're holding an asset that should ride out the good times and the bad.

Currently, though, with the economies of many countries performing well and fears of deflation in the UK, savers have been put off it.

In the midst of the financial crisis in 2011, the price of gold soared to a record high, eventually hitting more than $1,900 an ounce. Today, it stands at around $1,176.

That drop has pummelled gold funds, which are down as much as 70 pc over the past three years.

However, when you invest in gold you need to remember that it isn't about growing your money -- it's about protecting it. It works as aabout protecting it. It works as a kind of insurance and, as with any insurance, there is a cost to owning it: gold doesn't pay interest or a dividend, and the money you hold in it is missing out on returns you could get elsewhere.

Figures from BullionVault show that a saver with 10pc of their cash in gold and the rest split between equities and bonds will miss out on the big peaks in the market when times are good. Their average annual return from 1975 to 2014 would be 13.7pc.

For a saver with no gold, that rises to a slightly higher 14.2 pc.

But the investor with the gold would fare better in bad years. In the worst year over that period, they would lose 7.6pc of their money, whereas the investor with no gold would be down 13.2 pc.

The dilemma is whether it is worth missing out in the good years to have the reassurance that you'll limit how much you lose in a bad year.

Laith Khalaf, senior investment analyst at Hargreaves Lansdown, says: 'The events which drive demand for gold are by their nature unpredictable, but it is difficult to see a recurrence of the perfect storm of low interest rates, currency debasement and turmoil in stock markets which propelled it to its 2011 high.' The prospects for gold largely hinge on what the U.S. Federal Reserve does next -- if interest rates go up, it's likely the price of the metal will come down.

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