Gold Trading Alternatives
Extraction of gold from mines is a time-consuming and expensive endeavor. We have several alternatives for you to trade gold depending on your portfolio composition, from buying physical gold metal to trading gold derivatives. Our gold trading alternatives include but are not limited to;
- Gold bullion – we will technically guide you on how, where, and when to buy gold metal in its physical form as a hedge against inflation. You will safely be able to buy and own gold bullion as bars, ingots, or coins. Physical gold metal is straightforward to buy and sell, and it is considered a low-risk asset. However, owning physical gold metal will require you to arrange safe storage which we can also do for you when needed.
- Gold stocks – we research, recommend and guide you on how and when you can invest in gold mining company stocks or stocks for companies involved in the gold sector instead of investing in an asset linked directly to the gold price. You will be able to trade gold stocks through your share dealing account. There are many gold mining companies whose shares are available for trading on the New York Stock Exchange (NYSE), Toronto Stock Exchange (TSE), Johannesburg Stock Exchange (JSE), etc. Such companies are Newmont Corporation (NEM – NYSE), Franco-Nevada Corporation (FNV – TSE), AngloGold Ashanti Limited (ANG – JSE), Kinross Gold Corporation (KGC- NYSE), Agnico Eagle Mines Limited (AEM – NYSE), B2Gold Corporation (BTO – TSE), Barrick Gold Corporation (GOLD – NYSE), etc.
- Gold spot – we will guide you on how to trade gold at spot price, which refers to the price at that gold metal can be bought and sold right now for immediate profits, as opposed to a date in the future for future profits. Typically, gold is always bought at a discount to the spot price and sold at a premium, that is how successful gold traders make profits on the trade. We will assist you to use technical analysis to determine the entry levels to buy and sell gold at the spot price. We will also illustrate on how to use spot gold price charts to identify trends in the gold market.
- Gold futures – we will assist you with technical know-how to trade gold futures contracts. In this alternative of gold trading, you will be able to trade gold under two terms (amounts and prices) decided now but with a settlement day in the future. This means that you don’t have to pay for the gold just yet (at least not in full) and the seller doesn’t need to deliver you any gold just yet either. The settlement day is the day when the actual exchange takes place, that is when you pay, and the seller delivers the gold. We will guide you on how to use the delay to speculate the future price of gold where you can sell anything you have bought or buy back anything you have sold, before reaching the settlement day when you will only have to settle your gains or losses.
- Gold CFDs – we will assist you to trade gold in its popular derivative form known as Contract For Difference (CFD), which is simply a type of contract in which you target to profit from the gold price difference between the opening and closing of trade, by buying or selling units for a given financial instrument instead of purchasing physical gold metal. CFDs are leveraged products that allow you to trade on margin and can form part of a diversified portfolio, providing you with greater exposure to the gold market. Considering the factors that move the price of gold, we assist will you to determine whether the underlying price of gold will rise or fall, then we will advise you when to buy or sell your units.
- Gold options – we will guide you on how to trade gold in its derivative form named gold options, the options have either physical gold or gold futures as the underlying asset. This alternative allows you to buy or sell physical gold or futures contracts directly. In this form, you will trade gold under two terms (calls and puts). A call option gives you the right to buy gold at a set price on the date the option contract expires. A put gives you the right to sell gold at the specified price on the expiration date. Like futures, gold options give you the right to buy or sell a given quantity of gold at a pre-set date and price in the future. But unlike futures that are obligatory, gold options are not obligated to exercise the right.
- Gold ETFs – we will assist you to trade gold in the form of Exchange Traded Funds (ETFs) which is a method of investing in gold that works in the same way as stock trading for individual company stocks on the stock exchange, with price fluctuation throughout the trading day. Gold ETFs are units representing physical gold in dematerialized form, they combine the flexibility of stock investment and the simplicity of gold investments. Buying Gold ETFs simply means purchasing gold in an electronic form. One unit of gold ETF is equal to one gram of gold and is backed by physical gold of at least 99.5% purity. Gold ETFs such as that SPDR gold shares (GLD) is designed to track the price of physical gold. We assist you to manage the price fluctuation of gold ETFs.