How To Trade Gold
Not familiar in knowing how to trade gold? You are not the only one who doesn't know how to do this. Trading gold is something that takes time to understand. You need to develop an individual strategy that works for you and your risk tolerance. Below are some pointers that can help you along the way.
- Buy into gold royalty companies. These are companies that make their money from royalties received from gold mining and sales. They usually hold a particular stake in an overall business that trades gold. This percentage could be up to 30 percent. Whatever the percent you profit, if you invest in a company like this the reason is because all gains will be split with people who invest in their company.
- Purchase stocks from the market. The best gold stocks to trade are index funds because your risk is spread out over a multitude of companies. Yes the index may be one stock, but that one stock has diversified its investments in over probably 50 companies. This makes it a lot safer than just investing in just one company.
- Buy junk gold and resell it. Junk gold is pretty much anything that is not gold bullion. It can be in the form of jewelry or scrap. It all depends on what type of gold you would be interested in reselling. Many times you can get this gold very cheap from people who really don't know its true worth and value. You then take this gold and resell it to gold refiners at spot price.
- Trade gold on eBay. eBay is a great place to sell gold if you are just looking to get spot price for it. Most people will usually pay at least that for gold online. Make sure that you place a reserve on your gold, so that you don't sell it for a lot cheaper than it is worth.