How to trade in gold and profit?

Trading in gold is a very lucrative business. If the trader is able to understand the market and the nature of gold price fluctuations, we will let you know how to trade in gold and make some profits from this trade.

The dream of trading gold is the dream of many individuals, it is always known that gold is one of the best wealth that can be owned by one, and to trade in gold means the opportunity to achieve a profit and a very large, you only know that in order to trade in gold, If you do not understand these rules well, do not offer to trade, so in this article we try to answer the question of how to trade in gold in different forms of trade.

How to trade in gold?
Gold History In order to trade in gold you have to know some facts about it and its history, so you understand what distinguishes it from other metals. Gold is a very precious metal, characterized by its yellow color and gloss. It used to be a way of criticizing different civilizations and peoples, . Gold is not affected by external factors such as water and air, which keeps it shine, without any occurrence of any rust or corrosion. 

Gold has gone through many historical stages. A gold base has emerged to organize trading. If you want to trade in gold, it is in a certain framework. But this system did not continue. After World War I, there was a collapse in the economy of most countries. Two agreements were also made to regulate gold after the effects of the Second World War. The first was the Bretton Woods Agreement in 1944, the second was the Smithothian Agreement, which came after the failure of the first, and the parties sought to regulate gold trading in a stronger framework and with more specific rules. .

What factors affect the rise or fall of gold prices? It is important if you want to trade in gold to know the factors that affect gold, whether its price is high or low, these factors are as follows:

The first factor: The value of the US dollar There is a strong inverse relationship between the US dollar and gold, when the value of the US dollar, this means the decline in the value of gold, and vice versa.

The second factor: the demand for jewelry especially from the Asian and Chinese markets, especially in Asia, we find that China and India are both the most countries that buy gold in the jewelry and jewelry market.

Factor 3: Central Banks If you want to trade in gold, you need to know more about central banks' policies and actions. When central banks cut interest rates, moneylenders resort to buying gold, and vice versa.

The fourth factor is oil prices. If you seek to trade in gold, you have to be fully aware of the price of oil. The relationship between oil and gold is very direct and direct. When one price rises, the price of the other rises, and vice versa.

Factor 5: Political Disorders If you want to trade in gold, you should always monitor the political situation and the turmoil that is taking place in the world, and investors see gold as a refuge on which they can base themselves in case of political unrest. Of course, these five factors have a big impact in the process of gold trading, and its impact is relative needs to intelligence from the investor in dealing, in order to trade in gold, use your mind well to succeed, and now we can start talking about the process of trading in gold with different types of alloys and plates and coins .

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How to invest in gold for beginners

Question about how to trade in gold? And how will the profit be? What is the easiest way to invest in gold? What is the difference between all these methods? How can gold be sold to an investor? Are there any fantastic gains in the gold trade?
If you have all the questions you have, you have already learned how to take advantage of gold investments. So the next important question is, how do you start investing in gold?

First, there are many forms of gold, and you can invest in gold coins, jewelry, ornaments, and gold trading and exchange funds, which is one of the most important sources of investment. It is also closely related to the mutual funds and the commercial gold funds, which may be a branch of some mutual funds. In general it is different due to the presence of gold on the stock.

Digital gold coin or DGC is another form of gold, representing electronically gold that can be spent when needed., Printed versions also called paper gold were previously used gold certificates and have been traded since the late 1800's until the early 1900's in the United States.

But regardless of the size of the investment or the type or shape of gold you will invest in, you should first know how you can control it? And how to start investing? And how much will it be going to invest?

You should know how much you can buy or how much you can start to invest in. Therefore, you should keep track of the price of gold in your place and know the local and global gold news which will affect the near term gold prices in the place to invest.

You should know that the cost of the item becomes cheaper whenever you buy more. This can be said of gold bars, gold coins and coins, such as when you buy a commodity from a place where you sell this commodity from a place selling goods at wholesale price. Buy one piece of gold.

To buy gold there are many merchants all over the world on the Internet, the choice of traders based on their job history in the profession, their credibility, and the number of customers who bought coins and alloys of them, so the old traders on the Internet have a preference over the Internet in terms of credibility Experience and safety, knowing that new traders on the Internet and marketers of gold markets have advantages not found in the old traders, in providing features and offers attractive and additional services that make them available in the market, and there are many companies that offer investment in gold funds Which offers assets for the investment of gold rolling, which are named names in the world gold sector.

Beginners can invest in gold and gain experience before entering. This ensures the presence of new investors in the market, which increases the spirit of the market and its investment in gold, but learn the more experience the more success in the market.

The most common way to invest in gold is to acquire it in its physical form, ie, bullion, gold coins and the big drawbacks in it. Perhaps the only way in this way is the costs of transportation and storage, in addition to the difficulty of trading with large quantities. In this way you have to be very good at gold prices, moment by moment .

There are other ways to buy stocks in gold as mining companies in gold, which is easier and cheaper and easier way of storing and trading of physical gold.

There is also the so-called gold exchange trading system, which is designed to provide the investor with a trading tool that tracks key securities indices and can be managed negatively. It has used the trading funds of the stock exchange. It invests in stocks for an investment portfolio that follows an index. It contains gold and oil. This investment is one of the easiest and least expensive ways to reach the gold market. Futures where gold is bought at a fixed price Futures, an agreement between two parties to buy or sell an asset "commodity or other" at a future date at an agreed price when signing the contract, the futures contract is not traded on the stock exchange, this is one of the oldest and simplest forms of derivatives contracts, Forex market or Forex is what allows you to enter the market share (Long) or salesman (shorts) in front of any other currency.

Selling gold to investors is different in the way gold is sold in gold. For example, buying gold through stock brokers is sold by the same broker. Gold bought in the form of bullion or gold can be sold by gold at today's gold price.

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How can a person invest in gold?

There are several ways, one of which is the purchase of products made of gold such as jewelry and ornaments, which can be used as a decoration for women and as an investment at the same time, but there are a number of reservations about this method. First, we have to know that the quality of gold is measured in carats, and the highest quality is pure gold, which was given a measure of 24 carats, since the gold ratio exceeds 99 per cent and up to 100 per cent.

With this high percentage of gold, 24 carats can not be used in jewelry nor in many products because of the softer gold at this concentration, despite the high density of the metal. For the scientific benefit - even if it is in the field of chemistry which I do not know - the gold density is equal to 19.3 grams per cubic centimeter. In other words, the weight of a piece of gold in the form of a cube of 1 centimeter is 19.3 grams. Which are often priced higher than gold.

Therefore, attempts to cheat in gold is very difficult because any other material added instead of gold will lead to a lower weight of the piece less than the right weight. But for practical and economical reasons, using 18 carats instead of 24 carats, which contains 75 per cent gold, 75 per cent is divided by 18 carats on 24 carats. Other materials are added to increase hardness and color control, mostly copper, silver or rhodium Or zinc and others. Even a 14 carat is considered a real gold, but the gold ratio is only 58.3 grams per cubic centimeter.

Although it is easy to buy gold jewelry, it is not the appropriate way to invest in gold for several reasons, including that the price of the gold item depends on the design and execution and other stones added, so there is no direct and accurate relationship between the price of gold ounce in international markets and the price of products made of gold. For this reason, there are those who buy gold coins and molds that come in pure gold of 24 carats, which is the caliber used in gold trading, either through spot markets or futures, and then stored in safe places in banks' tanks or by specialized companies with insurance work on them .

However, the easiest way to buy gold is through specialized funds or even through the purchase of ETFs, which are shares sold and bought like the rest of the shares and no different from them. For example, the GLD, which simulates the price of gold ounce, Ten shares of it the price of one ounce of gold. Despite the popularity of this fund and its ease of circulation, there are those who do not consider it a real purchase of gold, and differ from the actual possession of gold molds or gold coins.

The reason is that these funds may sell more shares than they have gold, which is dependent on the idea that they have enough gold to meet the redemption requests that are made on a daily basis and that it is not expected that all investors will claim their money once, But it is not guaranteed. The other option to invest in gold is by buying shares of companies engaged in gold exploration. There are specialized funds that bring a number of these companies into one basket to reduce the risk of buying shares of one particular company.

In conclusion, the investment in gold is still an appropriate means for those who have a great fortune and want to preserve it against the actions of central banks and the impact of inflation. Gold prices may go through financial bubbles as the purchasing power of the dollar fluctuates and it is possible to speculate on gold prices, So do not be risk free and lose a large part of the capital.

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characteristics of gold and how to invest in it

Gold lost about 30 per cent of its value in 2017, raising doubts about the quality of investment in gold and the importance of escaping currency to tangible assets as a result of the erosion of the real value of currencies as they continue to be printed by central banks around the world. Is gold, in general, suitable for investment? Is gold still suitable for investment? What are the ways to invest in gold?

With a brief historical review, gold has grown by about 300 per cent in the past 15 years, while stocks (represented by the Dow Jones Index) have reached about 80 per cent over the same period, although gold has lost 30 per cent of its value this year, At the same time, the Dow Jones rose by about 23 per cent. In other words, except for 2017, gold has grown by over 450 per cent in 15 years, while Dow Jones has grown by 42 per cent over the same period, plus annual dividends of 1 to 3 per cent.

There is no doubt that one of the most important reasons for the rise in the price of gold in the past years is due to the great appetite to be acquired by investors and some central banks who believe that the dollar is in a state of deterioration will continue for many years, and that there is no room to save wealth only through tangible assets, . Despite the negative performance of gold this year, there are many who adhere to the idea of ??investing in gold and does not deviate from it, whether it has risen or fallen.

What is the reason for the attraction of gold?
The idea of ??investing in gold is based on two hypotheses. First, the purchasing power of paper currencies is constantly eroded. Second, the supply of gold is limited, so the price of gold is always at the mercy of demand, which is expected to last for decades. As for the limited quantities of gold, it is known, as the total of the extracted from gold over the life of mankind estimated at less than six billion ounces, or about 170 thousand tons, and produces annually in the world about 2500 tons, and more than half of the production was during the 100 years past.

This means that the amount of gold in the world is increasing annually by about 1.5 per cent, which makes gold fundamentally different from many other goods that do not have the factor of accumulation, that is, those goods that are extracted and remain on the face of the earth, unlike many other goods as depleted as oil Which is extracted and consumed irreversibly.

But since the amount of gold extracted on the surface of the earth is increasing - that is, the quantity is increasing - under the law of supply and demand is supposed to increase the supply lead to lower prices, the gold price is supposed to fall! The imbalance in this analysis is that demand is growing more than supply, and this is true even in years when demand is relatively modest, due to the weak growth rate of annual gold, which we have seen does not exceed 1.5 per cent.

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How to invest in gold in easy ways

Gold Market Outlook: Gold has reacted to what is expected in gold trading
Where it has reversed the downward trend and defied the US dollar, which lives a new golden age not seen since the nineties of the last century, and perhaps the reason for this reaction some of the reasons that may be true may make gold the winning horse for 2018, investors have diminished the investment opportunities.

The US market is floating in the cloud, where the earnings multiples of shares have achieved astronomical figures. Yes, the US economy is advancing, but what is the benefit of any progress to the economy and the interest rate is 0.00: 0.25%, which means that progress is limited.

The US dollar is no longer big. It took the biggest part of the climb, as did the US dollar. Investors were puzzled by the fact that the dollar is reversing the market. It is a reserve currency that only starts to thrive in economic crises. This means that the world's investors are very concerned and are storing the dollar in anticipation of concerns that some may see on the global growth,This claimed to take precautions and caution "gold" current price attractive and less than the cost of production.

In addition to the problems that the European Union will suffer from the increase in inflation due to the violent fall in oil prices, the problems of the Middle East, the wars and the crisis of America and Russia are all contributing to the exacerbation of crises, the first of which is gold, even if you look at countries that had banned the purchase of gold Such as India, which was the biggest buyer of gold in the world, we see that this ban stopped last week, Russia is also trying to break the crisis of the collapse of its currency by buying more gold, so we think that gold is a great opportunity to climb this year, and even see that he will be the winning horse among the ascenders this year.

How to invest in gold
1 that the investment should be at a time of low prices, while avoiding buying at the time of its rise.
Buy 2 24-caliber bullion for its manufactory.
3 - The investment should be from surplus funds, with no recourse to borrowing.
4 that the gold form between 30 and 40% of the investment portfolio.
5 - Refrain from buying gold for investment purposes, especially those containing precious or semi-precious stones.
6 Determine the price that the investor wants to reach, for profit.
7 - Regular access to US economic news and dollar reports.
8. A clear and long-term investment strategy

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How to trade gold to make a profit

The gold market is expected to see a drop of more than 10% over the next six months, pointing out that "gold investment" is not risk free, but the risk ratio ranges between 10 and 15% only, while in other investment sectors to 70% .

Expected decrease
"Over the next six months, gold prices are expected to fall by more than 10 per cent, driven by the dollar's rise and the strength of the US economy after the gold market has fluctuated over the past period following a drop of more than a month," Marzouqi said. Unprecedented rates for years. "

"Investment in gold, like investing in other sectors, is not without risk. There is no 100% safe investment, but the risk of gold trading is much lower than other sectors, such as real estate, stocks and bonds, for example," he said.

"Investment risk in gold ranges from 10 to 15 per cent at most, while investment risk in the real estate sector, for example, is 40 per cent and in sectors such as equities up to 70 per cent," he said.

He pointed out that «among the reasons for the superiority of gold over other sectors in terms of safety, it is a rare metals, and that does not follow the stocks in the ups and downs, and that it is an excellent tool of saving tools, especially for peoples that suffer a large fluctuation in the prices of their currencies, Therefore, experts advise people who are unstable in their currencies to invest in gold, by replacing gold with gold, so that they can protect their money from falling value, and increasing inflation ».

"The fall in the price of the yellow metal is very tempting to buy, especially if it coincides with the seasons of weddings and holidays, and it drives many consumers to invest," he said.

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