Where to invest money in order to make profit without major risks? More and more investors keep pondering on this question amid global economic and financial uncertainty and instability.
Nevertheless, smart investors know how to make money even amid instability. They bet on gold.
It is interesting to know that in the early 2000s investor kept away from gold. At that time, investors preferred housing market and riskier assets with higher yields. The things have changed. More investors choose gold as a reliable asset to hedge against a possible financial collapse.
Some brokers like HY Мarkets have started revealing the prospects of gold investments to their clients.
What advantages does gold have in store for individual traders and investors? Can a mediocre small-scale trader afford trading gold? Let’s listen to a representative of HY Мarkets.
Gold Investments: Stable Profit With Minor Risks
According to HY Мarkets (TOP5 of ’s rating of Forex brokers ), gold and other precious metals have always been viewed by the humanity as valuable assets. Gold used to be a currency in everyday use. Later people started forgetting about the true value of gold. However, the latest global crisis (2008-2009) undermined the image of stocks, bonds, dwelling property, currencies and other assets, simultaneously reminding us about gold as a safe haven asset to hedge against financial uncertainty.
Back in 2000, an ounce of gold cost around $300. In mid 2012 it reached the all-time price record at $1920/oz. By now, the price has retraced by some 17%.
Gold has been volatile so far. Nevertheless, considering the volatility of other unstable assets, we may conclude that gold is one of the most reliable and valuable assets.
Even despite the fact that the price of gold has nearly tripled since 1999, the precious metal remains attractive for investors and speculators. The experts of HY Мarkets say we shouldn’t be afraid of those volatile moves we can see in the present-day market of gold. Gold market is fairly liquid. It is a universal currency, which can be exchanged for any currency around the globe at any time.
Both long-term investors and short-term speculators add gold to their portfolios. As we have already stated, multiple negative tendencies (inflation, unemployment, economic slowdowns, crises etc) contribute to the status of gold as a safe haven asset, thereby making it more valuable amid declining production and supply.
Obviously, the long-term bias is bullish. Sooner or later, gold prices will rocket sky-high.
Experts: Any Portfolio Should Contain Gold
According to Sergei Cherepanov, an expert of , gold is a bargain for long-term investors and a good safe haven asset to secure your funds against inflation and financial shocks, which also allows investors to multiply their capital.
All types of investors should diversify their portfolios with precious metals (10-20%) amid global instability. By the way, George Soros and John Paulson, famous billionaires and investors, did the same not so long ago.
However, it is often said that to invest in physical gold, one should have a lot of money. With HY Мarkets, that’s not a problem anymore. CFD trading requires less money for trading or investing in gold, silver and other precious metals.
It is time to secure your trading capital against possible financial and economic shocks!
