How to trade Gold and silver safely? | Beneficial Function

In case you purchase precious metal, the best and 1st recommendation is to put a fixed amount of money for each month towards gold irrespective of the rate of gold. This helps to decrease risk and spreads it over time.

When it comes to money management, most traders dedicate up to 10% of their investing portfolio to precious metal investing. Other adventurer investors may dedicate up to 20% in gold but this requires more risk management efforts.

One of the main advantages of gold investing is that it protects against inflation and global uncertainty.

Timing: When to purchase gold/silver?

The simple short answer is: whenever you need it. Precious metal investing can?t be approached with the same way as trading stocks or real estate. Keep in mind that the important objective of gold investing is to diversify your capital portfolio to protect against currency inflation and global insecurity. So, timing isn?t the major aspect. A better question is to ask yourself: Do I actually need to purchase gold/silver? If the reply is yes, go ahead and buy it without awaiting gold price to decline to a certain amount mainly because this may never happen and the gold rate continue to rise more and more.

Can I become a profitable gold/silver investor?

One of the most common myths is that to become a profitable gold/silver investor, you have to be an economic professional with many years of expertise in currency or gold/silver investing. In fact, most gold/silver investors are of all those people we meet in our day-to-day life like teachers, physicians, lawyers, .and so forth without the need of much knowledge in this subject. Good results in precious metal trading is a subject of discipline and risk control greater than becoming a matter of experience. So, gold/silver investing is observed by many individuals as a long term protection as opposed to an actual trading.

A typical mistake some precious metal traders make particularly once they get started their business in gold trading is to purchase gold varieties that have very little or no relationship to their targets. For instance, safe-haven investors: This group contribute to a good 75% of the present physical gold marketplace. Most frequently the safe-haven trader basically needs to add gold/silver coins to his or her portfolio, but too frequently this trader ends up rather with a leveraged (financed) gold position, or a handful of exotic rare coins, or a position in an ETF that amounts to little more than a bet on the gold rate. These have little to do with safe-haven trading, and most investors have to avoid them.

Gold stocks: Many of investors own gold stocks and they may also have a place in the portfolio. Nevertheless, it really should be noted that gold shares are not an alternative for real gold ownership, that is, in its physical variety as coins and bars. Instead, shares have to be viewed as an addition to the portfolio after one has actually diversified with precious metal coins and bullion. Gold shares can in truth act reverse the goal of the investor, as some justifiably disgruntled mine company shareholders learned in the recent past when their stocks failed to operate as the price rose. There is no such ambiguity included in actual gold ownership.

Learn how to invest in gold and make huge profits while protecting yourself from inflation and global insecurity at Gold Price Today.

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Source: http://www.beneficialfunction.com/trade-gold-silver-safely/

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