Gold is a precious metal with numerous uses, including wealth preservation and jewellery manufacturing. Because of its popularity, it is one of the most widely traded raw materials around the globe. Gold was also one of the earliest investments and was widely traded before the invention of stocks, bonds, and other assets.
Many traders view investing in gold as a good opportunity for profit, as it is a tangible asset that isn’t tied to a particular economy or market.
Many traders view investing in gold as a good opportunity for profit, as it is a tangible asset that isn’t tied to a particular economy or market.
Physical gold
Gold ETFs
Gold futures
Gold spot market
Ways to trade gold
Keep in mind these investment types do require a great deal of capital to get started. However, precious metal contracts for difference (CFDs) offer access to gold spot markets for less capital.
Why invest in gold?
Safe haven
Unlike currencies, gold is not impacted by interest rate decisions and has a scarce supply that only increases incrementally. This means gold maintains its value over time and is considered a safe haven investment during adverse economic situations.
Wealth preservation
The value of gold remains relatively constant or increases over time. Because of this, gold acts as a convenient method for wealth preservation.
Hedge against inflation
Gold will increase in value when the US dollar depreciates due to inflation or other economic issues. Some investors purchase more gold during inflationary periods, while others always maintain gold in their portfolios.
Diversification
The gold market offers an excellent opportunity for portfolio diversification, which helps reduce investors’ volatility risk.
Benefits of investing in gold CFDs
Most accessible way of trading gold.
CFDs are derivatives trading products, allowing traders to speculate on financial markets without taking ownership of the asset.
CFDs provide much higher leverage than any other form of traditional gold trading, allowing traders to hold positions with less capital.
CFD brokerage fees are much lower than other traditional trading methods.
Ability to capitalise on price changes in either direction by going long (buying) or short (selling) gold. This gives you the ability to profit from any type of price fluctuation.
CFDs don't have set expiration dates, day trading minimums, or other requirements. They also feature far fewer restrictions on closing a position.
Investors can enjoy worldwide reach through the TMGM platform.
Steps to get started trading gold CFDs
Here are the steps to start trading gold using CFDs:
Download MT4
MetaTrader 4 has the charting and data features necessary to monitor markets. It also provides back-testing tools, which allow you to test strategies on historical market data before employing them in real-time.
Sign up with TMGM
Plug in your details and open an account with TMGM. Sign up takes less than 3 minutes!
Select gold to trade
Browse the market and decide how you would like to invest in gold.
Determine your trading strategy
Choose a trading style that best suits your investment goals. TMGM offers daily analyses to help traders make more strategic decisions.
Trade
Once you are comfortable with your trading strategy, open your first trading position and engage in gold CFD trading.Kickstart your investing journey with TMGM
TMGM offers spot gold CFDs, provides 1:20 leverage and rapid execution with 10+ liquidity providers and NY4 servers. We are also a highly secure platform, so you can be confident your funds are safe and all trades are fair and transparent.
We provide 24/7 support, so you can trade anytime and ask questions or raise concerns. Visit TMGM today to open an account and begin trading gold CFDs.
Frequently Asked Questions
The price of gold changes based on different economic factors.
Gold has an inverse correlation with the US dollar. When the dollar weakens, the price of gold increases. However, when the dollar is strong, the price of gold may decrease in the short term. Fluctuations also occur during major events. Investors rush to gold and drive up demand during economic or political crises.
Gold has an inverse correlation with the US dollar. When the dollar weakens, the price of gold increases. However, when the dollar is strong, the price of gold may decrease in the short term. Fluctuations also occur during major events. Investors rush to gold and drive up demand during economic or political crises.
Gold can be a solid long-term investment. It holds value well and has increased in value over the decades. Those who want to adopt a buy-and-hold strategy may be better off with physical gold or gold ETFs, though it is also possible to buy and hold CFDs because they do not expire.
Gold prices fluctuate, so if you do not plan to hold your investment long-term, you should be aware of short-term factors, such as economic announcements and inflation reports, which could cause hourly or daily price moves. Risk management tools, like stop-loss orders, can keep you from experiencing major losses.