5 Reasons to Trade Gold :


If for most people, gold is used simply to make jewelry, it is far from being its only use. In fact, gold is used as a conductive material, to make space shuttles, to cure certain diseases, and so on. And to negotiate on the financial markets.

Investing in gold is possible for governments, financial institutions and private investors such as individuals. The trading of gold presents for these different players a lot of assets. Here are five :


1 - Gold is safe from geopolitical crises: Generally, in the event of a political crisis, the currency of the foreign exchange market is directly impacted. On the other hand, gold stands relatively well in these difficult periods, the risks of devaluation are very low.

2 - The production of gold is limited which increases its value: The level of forex currencies is set by the heads of governments. The latter may, in fact, decide to turn the ticket board relatively easily. Making gold is a much more complicated process that can take several years. The demand often exceeds the availability of the precious metal, which leads to peaks in prices.

3 - Gold has a history: By observing the historical levels of foreign exchange market currencies, it is found that most of them have experienced significant falls at one time or another. Gold, on the other hand, has never suffered a long-term decline. It does not always progress but through history it has always been maintained.

4 - Gold is a cure for inflation: The increase in the price of gold generally goes hand in hand with the increase in the cost of living. The precious metal is therefore an effective remedy against inflation. Analyzing the history of the US stock market, for example, we see that during periods of high inflation, the Dow Jones declines while gold remains stable or even progresses.

5 - Gold is an excellent way to diversify its portfolio: when you have a large investment volume, it is essential to diversify the assets you are trading. By opting for gold, you can add a little stability to your portfolio.

0