Monday 7 April 2014

According to Doug Mears - 3 Things That You Need to Know About Gold Trading

With a sharp surge in gold prices over the past few years, gold trading has been gaining in popularity throughout the world. Nowadays, one can easily find numerous gold trading tips listed online. Every expert has something new to say, but if you are really serious about getting the most out of your investment, take a look below at 3 basic things every gold trader must know before investing in gold:
·         Purchase Gold in Physical form: One of the best possible ways of investing in gold is through ownership of gold coins and bars. Not only does it offer genuine money value returns, but at the same time you’ll feel a lot more relaxed by knowing that you’ve something that can be exchanged for money anytime as and when required. Plus, gold being so valuable, you can expect to get high returns by holding physical gold for a certain period of time. Unlike Gold stocks, gold trading in physical form is much more secured and promises genuine returns, though it takes a longer time to show the results compared to the gold stocks. However, it’s always recommended to go for the slower but a safer mode instead of opting for the faster but highly volatile risky modes.

·         Spot Gold Trading: Market experts nowadays prefer Online Gold trading simply because it’s probably the quickest and most secured way of gold trading. Firstly, by trading online, you won’t need any storage space. Adding to this, even if you are working with a limited capital, you can effectively make full use of steep leverage rates that your broker offers you. Moreover, this will also ensure that even if gold price drops suddenly, you can still make profits by selling your gold contract. People mostly fail in spot trading because they never take money control in hand and are often over-leveraged. These are the things that must be avoided under any circumstances which is always suggested by Doug Mears.

Portfolio Diversification: Many people have a misapprehension that it’s better to invest in a particular investment vehicle to be profitable. In reality, it’s completely the other way round and therefore it’s vital to get your portfolio diversified so that even if one investment is not doing that well, you still have backups that are helping you make money. Alongside this, add more capital slowly to your investment when the investments start making money so that it will effectively serve as a compounding factor, that’s the way through which money makes money.  

Monday 10 March 2014

Doug Mears Led Leland Gold Making Gold Trading Easier than Ever

Gold has maintained its steep price rise in recent weeks amidst speculations about the increasing debt crises from Greece to United States contributing in making the metal as one of the safe haven assets to purchase. According to a latest report published by the World Gold council, the metal had outperformed all major commodity, bond and equity indices across the globe in all three quarters of the 2013-14 and stands a great chance to make it a clean sweep. While some investors are of the opinion that this price rise is temporary, others reckon the price with rise even further. Doug Mears’s Leland Gold predicts that the metal will touch $2500 an ounce next year. But, how should potential investors get exposure? Read below 4 effective tips for trading gold:
Never buy too much: Gold is thought to be a safe asset that will always retain a big part of its value even if every other asset classes are depreciating in value. Therefore, people mostly hold gold as insurance out of the belief that the world economy will combust. However, it’s to be remembered that gold holdings provide zero income and gold price can also be volatile, especially when equities are falling. That’s the only reason why most of the leading providers of physical gold to the investors advices investors not to invest more than 3%-5% in gold.
Consider Using Gold ETF: Gold ETF’s are a simple way of gaining exposure to gold. The ETF securities offers listed tracker funds backed by physical gold, contrary to the other major exchange-marketed commodities, which mostly tend to follow futures contract. Moreover, using Gold ETF’s, gold can be traded daily in return of a nominal management fee that further makes it convenient for the traders.
Hold Physical Gold: The specialist gold providers’ looks to purchase physical gold and accumulate the purchased gold in nominee accounts or vaults- providing them the security of being assured that the purchased gold is effectively held in their names. However, at times it might well be difficult to sell physical gold quickly and adding to it, upfront expenses can also be high.  Therefore, over purchasing is again something that traders should always be careful of.

Purchase Gold Miners: This is one of the most widely preferred indirect ways of gaining exposure to golf. Studies and surveys conducted over the past couple of years have clearly revealed that with the share prices of the mining companies going down steeply amid volatility of the equity market, gold miners are enjoying a much better trading prospect compared to the consistent rise in the price of gold.  At the same time, investors also need to understand that shares in such mining companies have a risk of being adversely affected by bulk selloff in equities- which is exactly what physical gold protects the traders from.