Gold! One of the precious and valuable metal in the world, this “yellow metal” has made people to become millionaires and you can be among the “1% of the millionaire”, if you understand the logic and secret behind it.
A gold bar as seen in the picture above is a “standard gold bar” or “gold bullion” as some people call it. It is made up of approximately 438.9 ounces of gold and an ounces cost as at when writing this article $1,242.70, I believe you may be a bit confuse about all the mumble jumble above, so let me explain.
A gold bar is made up of 438.9 ounces of gold that is like saying that 100,000 drops of water makes up a litre of water, keep in mind that ounces is a unit of measure sometimes use to measure liquids such as your perfume and solid like the gold we are talking about here.
Gold Bar are very expensive and as such, it is sold in pieces which we call “ounces” and an ounce of gold is worth $1,242.70, to know the value of a whole bar of gold we have to calculate it, we can calculate it by multiply the total ounce that makes up a gold bar by the price of a single gold bar, that is $1,242.70 * 438.9 =$ 545,421.03.
To get a gold bar, you will need to have $ 545,421.03 cash, which is a lot of money when converted to my local currency. So how many of us have that kind of capital to buy a gold bar or even a single ounce of gold, but we can make our money from trading this precious metal online.
Learning to trade gold online is what this article will be about today. But because we continue let’s look at why trade gold.
Why Trade Gold.
Trading gold is one of the sure way to invest your money online in the financial market, gold is widely traded and as such there is liquidity and it is safe from financial collapse such as stock market crashing and the rest.
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To those of us who are already familiar with the financial market, gold is regarded as a “safe haven” for investors that is, when the United State Dollar (USD) is falling, these investors quickly rush to buy gold that is why, when the Dollar is falling in price, the gold will increase in value.
So what does all this means for you, it means when you play your cards right you can make profit continuously, remember as far as you play your cards right.
Ways Gold Can be Traded
Now, let’s look at the various ways gold can be traded, the original way of trading gold is by buying it whole or by ounces but this is too expensive and can only be done by millionaires or those who are gold dealers but to be able to trade gold via this mode you must have enough capital and do not forget that this include owing gold physically.
Another way is to own gold Jewries such as neckless, ear rings and other ornaments which can be given to a goldsmith to melt and formed into various shapes which can be later sold out.
The third way is by trading gold online.
How To Trade Gold Online?
To trade gold online, you will need will need a broker, what a broker does is simply to help you buy or sell on any financial market and that include the commodity market (gold and silver).
REMEMBER: you will not own this gold physical or even get issued a certificate of ownership
Let me further explain, to buy physical gold you will need the cash to do so and also find someone willing to sell it to you and do not forget you will need to be within the geographical area to be able to receive what you paid for.
Passing through all this procedures is quite stressful and consume a lot of capital but imagine a scenario where you can trade gold from the comfort of your bedroom without passing through this steps, what you just need is a reputable broker, a device (lap top or tablet, your phone can do but it is not recommended) and a good internet connection.
Processes in Trading Gold Online Using a Broker
I feel most of you might become sceptical about trading gold through a broker but let me first explain the processes involve.
Do you guys remember when I said that gold can be traded in ounces, well in the financial market many people buy and sell numerous financial instruments and assets and because of the frequent transactions, deals are broken down into tiny fragments called “contracts”.
So what your brokers does is to find numerous people buying and selling these contracts and tries to pool their customers’ funds together, when these funds are combined together they are able to purchase larger contracts.
In summary, when trading gold online, keep in mind that you will not receive the physical gold delivered to your door step either will you receive a receipt, invoice or certificate to claim your gold but everything will be done on your broker’s platform according to your wish.
Not only gold can be traded this way, silver, currencies, bonds, futures, stocks, options etc. can all be traded online thanks for fast internet connection now.
If you have read to this last page, then I will suggest you read the next article where I will show you how you can trade gold profitably and techniques you can use.
If you find this article fascinating, please share with your friends and family and comment below, I would love to hear from you.