Why gold trading has always been a popular investment

ATFX

Publish date: Wed, 10 Feb 2021, 04:59 PM

Gold has been an important precious metal since ancient times, and it is now a popular investment commodity. In this article, we shall strive to find out what makes gold such an attractive investment and why people have always flocked to the yellow metal. Let’s get started.

The reason why gold is such a popular investment is that it can be used as a currency, or a store of value, and as a crucial component in certain products. Unlike the fiat currencies issued by governments, gold has an intrinsic value, and its supply is limited, which is why it has been used as a currency and medium of exchange since time immemorial. These qualities have made gold an attractive alternative currency and store of value today as the value of fiat currencies continues to depreciate.

Gold continues to play an important role in modern economies given that most central banks buy the metal to stabilise their currencies. By stockpiling gold reserves, most governments can protect the value of their currencies against inflation, which erodes the value of paper money over time. Investors continue to buy the metal due to its intrinsic value as a hedge against the constant devaluation of paper currencies.

Gold trading has 4 major advantages:

Gold trading is a viable investment strategy because investors can profit from movements in the price of gold without having to buy the actual metal and store it.
Investors who trade Gold futures and CFDs can easily profit from price changes in both directions without incurring huge margin costs, like physical gold traders.
Gold trading adopts the T+0 trading model, that is, if you buy on the same day, the transaction will be settled on the same day, and you can enter and exit trades pretty quickly.
The gold trading market is a global market , with large trading volume, high transparency, and good liquidity. Together with the aforementioned value preservation and its own scarcity, gold has a high investment value and can be used as a value-preserving asset during financial crises.

ATFX is a co-brand shared by a group entities including:

AT Global Markets (UK) Ltd is authorized and regulated by the Financial Conduct Authority (FCA) in the United Kingdom with registration number 760555. The Registered Office: 1st Floor, 32 Cornhill, London EC3V 3SG, United Kingdom.
AT Global Markets LLC is a Limited Liability Company in Saint Vincent and the Grenadines with company number 333 LLC 2020. The Registered Office: 1st Floor, First St. Vincent Bank Bldg, James Street, Kingstown, St. Vincent and the Grenadines.
ATFX Global Markets (CY) Ltd is authorized and regulated by the Cyprus Securities and Exchange Commission (CySEC) under the license no. 285/15. The Registered Office: 159 Leontiou A' Street, Maryvonne Building Office 204, 3022, Limassol, Cyprus.
AT Global Markets Intl Ltd is authorized and regulated by the Financial Services Commission with license Number C118023331. The Registered Office: Suite 207, 2nd Floor, The Catalyst, Silicon Avenue, 40 Cybercity, 72201 Ebène, Republic of Mauritius.

Discussions

Be the first to like this. Showing 0 of 0 comments

Featured Posts

MQ Trader

Introducing MY's First IPO Fund for Sophisticated Investors!

MQ Chat

New Update. Discover investment communities that resonate with your ideas

MQ Trader

M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a

Latest Videos