Speculators, funds, and investors trade gold all across the world in an effort to benefit from changes in market prices or protect themselves against inflation. Learn about the basics of gold trading, what affects the price of the metal, and how to invest gold stocks, futures, and options.
Trading in gold involves speculating on its price in order to profit, often through futures, options, spot prices, shares, & exchange-traded funds (ETFs). The transaction is often paid in cash rather than handling actual gold bars or coins.
You could opt to trade gold for a variety of reasons, such as sheer speculation, a desire to purchase and acquire genuine gold, or even as a hedge.
When trading gold, you don't always have to adhere to the conventional maxim of "buy low, sell high" because you may go short and long on gold prices, profiting from both rising and falling markets. The goal of gold trading, regardless of your stance, is to forecast the market's future course. The more the market goes in the way you anticipated, the more money you'd make; the more it moves in the opposite direction, the more money you'd lose.