Australia is among the largest gold producers in the world, ranking number 3 due to its over three hundred tonnes mined every year in Australia. As economies across the globe continue to stumble, an investment in gold continues to be a safe heaven for gold traders. Essentially, and similarly to any other investment and shares trading, gold traders will buy gold when the price is low, and sell gold when the price is high. Moreover, the chart below shows that gold is in an uptrend, thus prices will continue to rise.
Just like most commodity prices, gold options prices are driven by global demand and supply. Traditionally, investing in gold has been done by buying it in physical form, either coins or bars. Nowadays, there are three popular options to trade gold online in Australia that offer gold market traders the possibility of being able to hold larger quantities of gold without actually having to store it physically: spot gold, gold futures martket, and gold ETFS.
Gold Exchange Traded Funds (ETFs), just like Gold Bullion Securities in Australia, are purchased by a gold investment managed fund.
As with forex trading, gold market traders can plan their gold investment using the fundamental analysis of the technical analysis, or both.
A fundamental analysis of gold will look at macroeconomic variables, such as interests rates, mortgage rates, GDP, energy consumption, political and financial issues, etc… as well as global gold demand versus supply. Technical analysis of gold is about analyzing gold market and gold options trend charts in order to forecast a future price. Although Gold prices have been going up for some time now, it is still considered the most popular investment from all of the precious metals among many Australian investors as means of wealth storage. Gold is a safe haven for investors during economic times of turmoil because it is less volatile compared to shares and foreign currencies exchange markets, which are the two main traded financial securities.
Gold is a High-Liquidity asset, as globally accepted currency to be easily traded, bought and sold. These are just some of the reasons why you should consider trading of gold as a home business owner in Australia, if you haven’t yet done so.
This is because in times of uncertainty and instability, people seem to turn to investing in gold as it holds its value. If you believe that the price of gold is going to increase, you would enter a long position.
Commodities trading, and especially gold trading, in Australia are considered to be a profitable, relatively low risk investment. In this article, we try to help Australian home-base business owners to get a clear picture of gold and commodity trading as a way of replacing or supplementing your income. Now, one of the advantages of gold over other commodities prices is that gold prices are much less volatile, as you can see from the chart below.
However, the difference between gold and other commodities is that consumption does not affect its price as gold is not consumed.
Futures trading is a large driver of gold prices and it leads to market manipulation and speculation by artificially suppressing gold prices.
Central banks in Europe, United States, Japan, and Australia, and the International Monetary Fund trade around 500 tonnes per year.
This is the market for gold prices at a certain point in time in the future, and are traded in the New York Commodities Exchange (COMEX). ETFs require a minimum investment from your side, because they store the physical gold themselves.
However, with gold and other metal commodities and metal prices, there is no study of balance sheets, dividends payouts, and such. Also, as with forex and share trading, there exist the notion of leverage in trading of gold in Australia. Especially when the US dollar value declines, gold investors are safe with gold as alternative. This has led to many people purchasing gold and the market becoming an actively traded market. Short selling of gold is done by speculating traders who don’t have any intention of delivering the commodity but on the other hand will close their trades before the contract expires.
The reason for this is because gold and commodity prices are directly related to interest rates and to the central banks through their monetary policies. This is an extremely attractive option for many people, especially during times of political uncertainty such as war or other crises. In the case of gold, gold investors can choose to borrow funds against gold assets, and then buy gold on account of the loaned money.
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