Advantages of Investing in Spot Gold

Advantages of Investing in Spot Gold

Hard to Have a Banker in the Gold Market:

While regional stock markets can potentially be manipulated, such a situation will not exist in the gold market. The gold market is a global investment market, and since a certain level of gold reserves is being held by the governments of different countries, there is no single financial group capable of manipulating the gold market. Even when that happens, unreasonable prices will return back to acceptable levels when other markets begin trading, and investors will naturally enjoy the greatest protection trading in a fair environment.

24-Hour Trading Market:
The gold market is a 24-hour trading market comprising of the trading time zones of different countries, including Asian, European and American time zones. 24-hour trading is ideal for investors as they are able to profit from closing a position or controlling risks at any time, and open a position at an appropriate net position. On the other hand, the gold market is open to the world without any upper or lower limits, making it even more secure to invest in the gold market. In addition, the entry and exit of the gold market is unlike that of the stock market where both the buyer and seller must be present in order for a deal to be closed. In the gold market, a deal can be closed as long as there is a net position without the need to wait for the buyer or seller to be present, hence minimizing the risks involved.

Allows for Two-way Trading:
Spot gold is a gold investment product that allows for two-way trading so that investors can profit from the rise and fall of the gold price. In the global gold market, the cycle of rise and fall in the price of gold is a fair reflection of the supply and demand in the market. Investors are not restricted to a one-way investment; instead, they can seek appropriate investment opportunities during the rise or fall of the market in order to earn the profits.

Easy to Master:
Gold investment is much simpler than trading in stocks, whereby the investor is required to analyze many different factors including the global economy, macro market trends, industry prospects and company status before choosing the suitable stocks to invest in. This is due to the fact that gold is an independent investment product and the factors to be analyzed are mainly the U.S. dollar, oil price as well as supply and demand. Therefore, it is suitable for first-time investors.