Discover the top up-to-date ways to invest in gold and learn which strategies work for this investment market.
Unraveling the market to invest in gold
One of the most sought after precious metals in the world, gold has been used as a source of reserve money, especially in times of crisis*1. But, with the emergence of the internet, it became even easier to acquire this metal and sell it over time seeking appreciation.
Each country has a specific value for gold based on the exchange rate, and when investing in another, the investor is subject to conversion. But what sets the price of this precious metal? And how do you know when to invest in it? We went after these and other answers for you.
After being discovered, gold was mined for many years and is now accessible thanks to developments in globalization. With the internet, more investors could participate in the market and know how to invest in gold in Portuguese or other countries that also offer this option.
But to know how to use this precious metal as an investment, you need to understand what affects the price of gold. And the key element of it all is supply and demand. That is, how much people looking for this option to invest in the trading market.
However, understanding how to invest in gold goes far beyond simply knowing how the price of this metal is obtained in the market. It is necessary to understand how you can buy this asset, without necessarily having to go to a store and buy a piece of jewelry. That is, find out which platforms are available to trade this raw material.
Brokers are digital platforms that allow the purchase and sale of gold in the investment market. And companies in this field have a simple step-by-step guide so that their clients can buy and sell their positions in this metal, with trading being carried out in the same way as someone who buys shares, for example.
It is through the broker that the client will know where and how to invest in gold. Well, all you have to do is register on the platform you trust, and then deposit resources to be prepared to make your first investment and be able to receive your rewards or bear your losses.
Brokers also allow you to see charts, where the price of gold will be on the market and you will know if it is appreciating or possibly falling, if you know how to do a technical analysis based on charts. But there are also other types of analyzes that need to be taken into account.
Before knowing whether it is worth investing in gold, it is important to understand how to interpret the act of allocating money in this metal. And for that, you need to see if the price chart for that metal is up or down. If you open your broker account and see the gold asset, you can analyze whether the chart is going up or down.
If the chart is growing, it means that gold is in an uptrend for the longer term. But, if the direction is opposite, possibly there is an excess supply, which makes the price of this metal lower than what it cost over the most recent years.
To know if it’s good to invest in gold, you need to understand that some moments make more investors seek this form of investment, which is more solid than other options. After all, it is a good that has high control by international bodies, as authorities wish to increase their reserves in precious metals at all times.
There are some situations that impact the price of precious metals, therefore, those who want to invest in gold need to know some cases in which the value of this asset may suffer a high appreciation. And one of them occurs precisely during financial crises, where this metal is in great demand.
In times of crisis, investors look for safe ways to allocate their money. And gold is considered a good option, since, even if several currencies are devalued, the bank fails, or the market slows down, gold will remain there, intact, and will still serve as a reserve with negotiation power.
Therefore, by allocating his money in gold, the investor is ensuring that his capital will be protected from possible temporary fluctuations in the market. Because, for example, if you invest in stocks, any impact on the demand for a particular product offered by the company you invested in will directly impact revenue and, consequently, profit.
Other events that also impact the price of gold are:
- Wars: as this also has a direct impact on a country’s economy;
- Regulation of central banks: the central bank of each country can define policies regarding gold that directly impact its price and availability in the market;
- Market demand: if jewelry stores and companies in the jewelry business choose to invest massively, it is possible that there will be a greater scarcity of this product for the final consumer, which will increase its value.
When we talk about investing in gold, we are not talking about physically going to a store and buying this precious metal. After all, this would be laborious, costly and you would possibly have to disburse much more resources to make your purchase than using the internet.
You can have a “gold position”, which consists of buying this asset in the trading market and keeping it in your portfolio, aiming for price appreciation over the years. This is an important strategy to diversify your investments and ensure that you have a stake in this precious metal.
With the emergence of the internet, investing in gold has become much more accessible and simple. And it’s possible to buy just a fraction of this precious metal, without necessarily having to purchase a bar as an investment. In addition, as it is sought after by many investors on a daily basis, its liquidity is good. That is, it is easy to sell it.
The gold investor will need to use some strategies to increase his chances of success with this precious metal. And the first one seems like a basic premise, but it makes all the difference so that the investment has a chance of being successful. So make sure you follow it daily if possible.
The first strategy for investing in gold is to follow the news. After all, the main means of communication allow it to be possible to see what economic policies are being adopted by countries, and also to understand if wars are about to happen between nations or within the same country.
The situation of the economy of a country like the United States totally impacts other nations. After all, North Americans demand a lot of products from other nations and, in the event of a crisis, demand could be drastically reduced, which would require a reserve of gold to use as a security fund.
It is also essential that you view gold as a long-term strategy. After all, stocks and other options are more focused on day trading, where investing buys and sells assets on the same day. Precious metals, as they suffer less fluctuation than other assets, are more suitable for those who want to keep them in their portfolio for a certain time.
test your strategies
The best way to find out how to invest in gold and which strategy works is to test your knowledge in the market. That is, opening your account at a broker, making your deposit, and then accessing the precious metals available to acquire your position and keep it for as long as you intend.
It’s important that you know the trading fees, but it’s even better if you know that the broker you use to trade has no commission, which drastically reduces the cost of buying and selling that asset. So, use all this information to your advantage and use your experience to find out how this market works.
- Is gold a good investment?
Yes, especially in times of crisis. As a precious metal traded around the world and an important store of value, gold is considered a good option for investors looking to diversify.
- What is investing in gold?
Investing in gold consists of buying this precious metal on the market. Thanks to online brokers, the investor can do this without necessarily having to buy a bar physically.
- What is the popular method of investing in gold?
Using online brokers you have adequate tools to buy gold without necessarily having to go to a store or leave a place with a bar in hand.
- Is gold safer than cash?
Each currency has its volatility and, depending on the economic scenario, many traders believe that gold is a better option than cash. In the vast majority of cases, as it is seen as a store of value, this precious metal fluctuates less than currencies like the dollar and reais, for example.
- What is the return method of investing in gold?
There is no fixed return on gold. Due to uncertain market conditions for very long periods, the price of this precious metal may or may not go up. But there is no specific percentage that works as a guarantee of income for investors.