Best Gold Trading Platform
Gold has played an integral part in the flourishing of cultures, traditions, and history. Moreover, trade and industry have used it as a currency since time immemorial. Many people consider gold as an excellent commodity for transactions because of the inherent value of this precious metal. In fact, according to the World Gold Council, its average traded value last 2017 is at USD 112 billion. This just shows how essential gold is as a driver of the world’s economy.
You might be interested in trading gold, but you are scared because the gold market is not your niche. Don’t worry. Trading gold is actually something that is easy to learn due to its similarity with the trading procedures of other commodities.
This article will introduce you to the different ways that you can trade gold. This also includes the best trading platforms for gold.
Different Ways to Make Money Using Gold
If you have gold and you want to make money, then you have a good starting point. Gold is a very versatile currency, and there are a couple of ways you can use it for trading and investment. The most common vehicles for gold are the spot market, trading of physical gold bullions, ETFs, and gold stocks.
The spot market, also known as the cash market, is an online avenue where an immediate exchange of commodities transpires. You can also think of it as a digital market where the transaction happens “on the spot”, hence its name.
In spot gold markets, traders are able to buy or sell gold at the live price. They can also get their gold delivered immediately. Spot gold trading is good for those traders who would like to start small.
Another option for you if you want to hold actual gold is to trade physical gold bullions. Bullions are high-purity precious metals formed into ingots or coins. You can purchase physical gold online or through bullion dealers. If, however, you are not confident about storing your gold bullion, some companies offer storage services at a considerable cost.
There are people who prefer to own virtual gold because they are skeptical about keeping physical gold bars or coins. If you are one of these people, then you can trade using ETFs instead. ETFs, short for exchange-traded funds, are “baskets” of securities. When you trade gold ETFs, you will not actually get a piece of physical gold. This gives the advantage of immediacy – you will be able to buy and sell ETFs without the hassle of waiting.
Similar to ETFs, buying gold stocks is another option for people who are not into keeping physical gold. When you trade gold stocks, you are buying or selling shares from gold-producing companies. Investing in gold stocks may potentially lead to higher profits, but this also entails a higher level of risk.
These four options are just some of the common ways to trade gold. There surely are other vehicles out there. You are highly encouraged to assess your goals for trading gold prior to selecting a specific vehicle. This way, you will be able to trade gold securely.
The Best Gold Trading Platforms
Yes, gold is a very expensive metal. That is why if you want to trade it, then you should do so through a reliable and safe platform. This will help you make sure that you will be able to do your transactions smoothly and reduce possible problems.
If you are into gold spot trading, then the first thing you should check is the gold spot price. This will give an idea of how much gold is at that certain instant. For this, there is no better website to check than the World Gold Council, which is the world’s gold authority. As for the spot markets for gold, there are several platforms that have their own set of guidelines. One time-tested platform is Forex which trades gold and silver at spot prices.
Just like in gold spot trading, there are also several platforms where consumers can trade physical gold bullion. SD Bullion prides itself as America’s cheapest bullion dealer, as manifested in their tagline.
Another leading dealer is Money Metals Exchange. This company offers storage options for consumers aside from delivering gold. Aside from these two, other famous bullion dealers on the list are APMEX, Provident Metals, and JM Bullion.
Exchange-traded funds are well-regulated, but there are still a handful of ETF platforms that are available. One of the best platforms for gold ETFs is currently that of GLD-SPDR, a subsidiary of S&P Global. The Gold Shares platform of SPDR is highly consistent with the global gold spot prices and has minimal management fees. SPDR keeps its gold bar reserves in a secure vault in London.
Another excellent ETF platform is that of SGOL Aberdeen Standard. This ETF boasts of unparalleled security and safety. The gold bars of Aberdeen Standard are kept in a Swiss vault and have their own serial number.
As for the gold stocks, one convenient way to trade it is through a broker. Luckily enough, there are several brokers in the US. One of the most famous is OctaFX because this allows you to start trading gold for a minimum of $5. Recently, eToro has also emerged in popularity because of its digital-readiness. Both of these brokers are easily accessible and also well-regulated.
Start Your Trading Journey!
Now that you have an idea about the different ways to gain money from gold, you can start your trading journey. You just have to remember that trading gold involves rational decision making. If you are not sure about a certain move, then you have to carefully study it. The internet and friends who have gold trading experience will be of great help.
Moreover, you have to be judicious when it comes to choosing your trading platform. Whether you plan to trade spot gold, physical bullions, ETFs, or gold stocks, a good platform will always make your trading experience more convenient.