Friday, 15 April 2016

A Beginners Guide to Spot Gold and Siver Investment

With the current economic outlook off things a lo of people have turned to gold as a reliable investment vehicle that can increase or at least preserve their wealth, if you are one of those wanting to invest in gold then you probably have to get familiar with a gold buying guide.

Stock gold trading is a transaction that can be easily done over the counter, at the price of spot gold is actually controlled by the forces of demand and supply, there they might be quite a bit of fluctuations in the price of spot gold. In  spot gold trading the price of the spot gold is determined twice a day from a base in London, and the trading system entails  that if a transaction is conducted today the price of the spot gold or silver is then payed two days later.

This system is a binary system of trading in which case spot trading is similar to currency trading but in this case the trade is between the Dollar and Gold. traders have he option of taking a long or short position depending on their analysis and perception of the market trend. Also in a similar way to how currency is traded gold is traded from three major centers of the world these are New York, Zurich and London. The market opens on a Sunday at 6 p.m. EST and runs till Friday at 5 p.m. EST.

The market operates round the clock and this provides a way of predicting the price trends and variations, normally the market begins to pick up when the Us and European markets begin to open when they is high liquidity and towards the end of the day when  the liquidity levels must have declined. The down side to this method of investing in precious metals is that it is almost driven completely by the forces of demand and supply, but the good side to it is that it is a very exciting market to be involved in.

You can easily get a spot account with any online Forex broker, spot trading of precious metal and Forex trading have quite a lot of similarities and among them is the high risks involved in undertaking such a business. Spot gold trading is just one of the investment vehicles for gold.

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