Gold is widely known as a traditional financial safe-haven. It is sought all over the world by individuals, governments, central banks, and hedge funds. Its value is depended on scarcity and consistent demand, and gold bullion is the premier security in the physical form or derivative one.
An old saying goes: “gold has never been worthless!”. The saying is real, and it proves true even the historical perceptions on bullion. It has served to humanity since the dawn of civilization, so it served as a peg for fiat currencies and stockpiled as a reserve asset.
If you decide to enter the financial market, you will find a high number of reasons why to trade gold. No matter if you prefer another particular asset, trading on gold is always safe and profitable. There are two main reasons why trading on gold is a smart choice; let ’s discuss them here:
When you go over that process of financial analysis, and it ends up trading any asset class, market accessibility might become an issue. Each type of asset has specific boundaries, and they make it easy or challenging the way it is bought or sold. Since the digital marketplace has been a huge chance to bring wealthy options to the fingertips of those who want to trade, trading gold is already an easy door to open. Most popular methods are:
Exchange-Traded Funds (ETFs)
Futures and Options
Contracts For Difference (CFD)
Maybe you are interested in trading on ETFs, which might require physical bullion or trading the EUR/USD, all you need is a financial advisor, risk capital management, and internet connectivity. Comparing to the past, gold’s boundaries to entry have been greatly reduced.
No matter where you are if you say gold, you are talking about value. In all countries, gold is respected as a staple of finance by traders and investors. Gold’s historical standing, not to take into consideration its consumer demand, make it a very appealing liquid asset in the financial market.
In practice, physical bullion is easily converted to cash. XAU/USD is one of the most popular spot pairs, although actual turnover data is relative. Even though, very clear statistics from London Precious Metals Clearing Limited estimate between 18 and 20 million ounces of bullion per month were traded by its five members for the first half of 2019.