How to trade gold: instructions for beginners (Part 1)

Gold is an important investment asset that has been used for centuries as an instrument of exchange for services and goods. Trading gold can bring quite a profit if you know the peculiarities of the process and choose the right strategy. In this article, we'll tell you how to make money trading gold and we'll also give you a list of the best derivatives. You'll also learn how to choose a market to trade this asset and an effective strategy for making profits.

Is it a good idea to trade gold?

In financial markets, gold has always been considered a protected asset that is used in times of crisis. It is a kind of insurance against the risks and consequences of large-scale money printing. Many experts believe that it is the best asset to invest in in times of inflation. There are several arguments in favor of investing in gold:

Opportunities for speculation.
As a highly liquid asset, gold can be easily converted into cash. This makes gold a popular asset for trading purposes. If you've predicted that the gold rate will rise, you can buy it today and sell it some time later at a better price, earning a decent amount of money. The conclusion is as follows: gold offers great opportunities for speculation.

A safe-haven asset
Experts do not consider gold a "safe-haven asset" for nothing. This suggests that its value will rise in times of crisis. If you're worried about a financial crisis soon, invest in gold. When you need it, you'll have no problem converting it into cash and be able to earn money.

Value preservation.
Given that gold has an exceptional ability to retain value for a long time, you can use it as a means of savings. If you invest in gold now, there is a good chance that over time you can sell it for the same value and preserve capital. This does not work with stocks, for example. Over time, their price can both rise and fall.

It is common in the investment community to turn to gold in anticipation of inflation. The price of this asset is not tied to the performance of any particular company. Not surprisingly, even in times of economic crisis, gold will retain value.
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