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Safer Trading Gold!!!

GrenMan (GrenMan)
Sep 14 2012 at 05:59
8 posts
Since Gold and Silver is one of the unique and precious metals are used in a variety of human basic needs, such as foreign exchange reserves of a country, support a currency, jewelry, money substitutes, for industrial purposes, and others. Besides, it is also influenced by the availability of gold and silver that is limited, and the level of political stability often also affect the movement of the metal. So that gold and silver is very suitable as an investment option that is worth mentioning for the long term and secure.😎

Sukses Sukses Sukses
sandelchayes
Sep 14 2012 at 09:03
20 posts
Yes, until they start selling everybody fake gold. oh wait they already did... Many times.

But seriously there has to be more to it than this. I am skeptical about gold's price rising just because so many think it should. Predictions of it going higher are generally true because of the different fiat paper currencies racing against devaluation, but what event could cause gold to seriously devalue? Can someone out there tell me?

I do agree with most of what you say GrenMan (that I can decipher)



"Follow your Highest Excitement;" -Bashar
James_Bond
Sep 14 2012 at 10:43
556 posts
I think metals such as gold and silver are a safe haven as those become harder and harder to find, therefore, its price can only go up long term. I'm not sure of which timeframe are you referring to GrenMan, but I don't think it's a viable investment for forex traders as forex for most traders is intraday trading.

GrenMan (GrenMan)
Oct 03 2012 at 19:03
8 posts
😎 Good Luck

Sukses Sukses Sukses
jw1981
Oct 12 2012 at 11:53
16 posts
sandelchayes, your post brings out an interesting point. There are lots of information/resources of prices of metals moving higher blah blah.. but seldom find any information that speaks about what can devalue the price of metals. Would be nice to see if someone with experience and the knowledge could shed some light on that.

James_Bond
Oct 13 2012 at 11:12
556 posts
jw1981 posted:
sandelchayes, your post brings out an interesting point. There are lots of information/resources of prices of metals moving higher blah blah.. but seldom find any information that speaks about what can devalue the price of metals. Would be nice to see if someone with experience and the knowledge could shed some light on that.


Exactly. Many traders see only an upside with metals, however they forget it can go down as easily. I would be interested in seeing the reason for devaluation of metals - one reason comes to mind is a strong economy, therefore less are looking for alternative investments (?).

brokersstaragent
Oct 15 2012 at 09:12
29 posts
One of the factors to the devaluation of metals like gold is currency strength. For example, a strong dollar can devalue gold as you only need to pay less amount of dollars for an ounce of gold. If the dollar is weak, you'll need more dollars to pay for an ounce.

I hope I contributed to the discussion 😄

The Fine Art of Investment
James_Bond
Oct 15 2012 at 16:00
556 posts
brokersstaragent posted:
One of the factors to the devaluation of metals like gold is currency strength. For example, a strong dollar can devalue gold as you only need to pay less amount of dollars for an ounce of gold. If the dollar is weak, you'll need more dollars to pay for an ounce.

I hope I contributed to the discussion 😄


Yes, that make sense! Another case I can think of is if gold becomes more of a precious metal, so its value can go higher even if currencies are strong.

blazan (blazan)
Oct 16 2012 at 15:08
5 posts
Exactly. Many traders see only an upside with metals, however they forget it can go down as easily. I would be interested in seeing the reason for devaluation of metals - one reason comes to mind is a strong economy, therefore less are looking for alternative investments (?).


This is a great point being made here. However, keep in mind that the Smart Money is always hoarding physical Gold & Silver. Ordinary people should also accumulate as much physical Gold & Silver as possible - from a reputable dealer of course. Paper currency is what is fluctuating in value, NOT Gold & Silver. Metals are actually the best indicator of how well or poor the USD is performing. With that being said, considering how the FED is now on QE3 to infinity, the value of the US Dollar will continue to decline over time. Don't be surprised if there is a currency crisis within the next few months or years. I suggest everyone accumulate Silver as it's more affordable than Gold & has greater potential to take off when the USD has its crisis. Don't worry about the price, just accumulate it while the opportunity is still here and it's so cheap. Remember, Silver was priced at $13.00 in October of 2007. Today it's around $33.00. What is that telling you about how the US Dollar has been doing over the last 5 years? Think about it.

James_Bond
Oct 17 2012 at 08:08
556 posts
blazan posted:
Exactly. Many traders see only an upside with metals, however they forget it can go down as easily. I would be interested in seeing the reason for devaluation of metals - one reason comes to mind is a strong economy, therefore less are looking for alternative investments (?).


This is a great point being made here. However, keep in mind that the Smart Money is always hoarding physical Gold & Silver. Ordinary people should also accumulate as much physical Gold & Silver as possible - from a reputable dealer of course. Paper currency is what is fluctuating in value, NOT Gold & Silver. Metals are actually the best indicator of how well or poor the USD is performing. With that being said, considering how the FED is now on QE3 to infinity, the value of the US Dollar will continue to decline over time. Don't be surprised if there is a currency crisis within the next few months or years. I suggest everyone accumulate Silver as it's more affordable than Gold & has greater potential to take off when the USD has its crisis. Don't worry about the price, just accumulate it while the opportunity is still here and it's so cheap. Remember, Silver was priced at $13.00 in October of 2007. Today it's around $33.00. What is that telling you about how the US Dollar has been doing over the last 5 years? Think about it.


Very interesting info - much appreciated for the detailed explanation.
Doesn't it also matter who controls the largest share of the market in question? For example (this is just hypothetical, I really have no idea), if most of the gold is exported from the US and its economy deteriorates, wouldn't gold lose value also? (although probably in a lesser rate).

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