Welcome to Australia gold trading

Welcome to Australia gold trading blog. I am Jerry living in Australia for last 10 years. I am doing online gold trading for last 4 years and here i am to share my views regarding Gold investment in Australia. Aside from being regarded as a symbol of power, status and class, gold is also used as a medium of commerce and trade over the centuries. Today, this is among the most easily available precious metals that you can trade in the open markets.

Australia is ranked 3rd in the world among gold producing countries. About 300 tons of gold are being mined here each year, with considerable known reserves assures the future of gold in this stable country.

Gold trading Australia is considered as a profitable, low risk investment in the market due to the high appreciation of gold prices. A number of Forex traders and stock investors have not shifted to a more “tangible” trading as the concerns over the Euro zone sovereign debt crisis as well as the weakening of the dollar continues. Gold is an ultimate asset during periods of economic crisis, inflation and currency debasement. During these times, it is a common practice among investors to transfer their wealth from paper assets such as bonds, stocks and currencies into stored assets like gold and silver.

The Characteristics of Gold

If you have been into Forex trading, then you’ll easily understand how Australia gold trading works. Basically, a gold trader buys when the price is low and sells when the price is high. Perhaps the major upside of gold over currencies is its volatility. Gold is a lot less volatile than most of the currency pairs traded in the Forex market, therefore gaining its reputation as a “safe haven” for investors around the world. And since it is more stable that currencies, it will relatively stabilize your investment.

Spot Gold Trading

The traditional method of investing in gold is to buy it in its physical form – that is, coins and bars. The problem however with this is the storage and transportation costs that a trader needs to consider in every transaction. While this kind of method still exists today, a majority of investors prefer to trade gold through online gold trading software provided by Forex brokers. In online trading, traders can hold as much quantity of gold they want without actually having to possess them physically.

Leverage

Another beauty in gold trading in Australia is that traders can take advantage of the leverage it offers. Leverage basically means the ability to control a certain number of trades with a relatively small capital. Using a leverage of 100:1 as an example means that it is possible to enter into a trade for up to 100 dollars for every dollar you have in your account.

While leverage can be enormous and beneficial, this can cause huge losses and even wipe out an entire trading account if not used properly. As a trader, it’s crucial that you understand both the benefits and the pitfalls of trading with leverage.

Conclusion:

Economic specialists predict that the value of gold will continue to increase over the course of the next few years. Precious metals in general have proven that they make a great alternative investment during times of economic crisis. Investing in gold now would be a wise move particularly before the economy fully recovers, as the prices of gold will peak when the demand for it decreased.
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Is Gold An Ideal Investment in Australia today?

Still considered by many Australian investors as a crucial store of wealth, gold and silver are being traded all over the world on a daily basis. There are several reasons why gold is widely considered today, primarily due to the economic uncertainties since the late 2000s. At the moment, the continuous weakening of the dollar and the Euro zone sovereign debt crisis has resulted to gold futures settling high.

While there are several methods for online gold trading in Australia, one that is preferred by a lot of investors because of its convenience is spot gold trading. Spot gold trading in the Forex market is the best way to enter the financial market especially during these rough economic times when the stocks and real estate are no longer as stable as they used to be. Spot gold trading is traded in an over the counter (OTC) market and is based on supply and demand. Just like in currency trading, market players speculate the global prices of gold. “Spot price” is the price quoted for a metal to be paid for two days after the date of the actual transaction or “settlement date”

If you have been trading currencies, then gold trading shouldn’t be an entirely new game for you. Spot gold trades are conducted pretty much the same way as currency pairs are traded. The only difference is that gold is being traded against the US dollar instead of two currencies trading against one another. Additionally, spot gold can be traded both in long and short positions multiple times throughout the day, given that the market moves rapidly.

Spot gold trading is conducted 24 hours a day between Sunday at 6pm ET to Friday at 5pm ET. While the gold trading market is decentralized, there are major centers around the world for these namely Zurich, London and New York. The liquidity of the market is highest when the European market hours overlap with the New York market. Needless to say, this time is the best one for conducting trades.

Just like in any kind of investments, gold trading comes with risks. Take note that it also makes use of leverage which can result to huge losses as much as it can make substantial returns. With this in mind, Australian traders should take the time to learn the ins and outs of the market before risking a large amount of capital.
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Why Buy Gold in Australia ?

The huge returns of the Australian dollar indicate the increased strength of its economy versus the US which is currently experiencing universal decline in its currency. Australia is greatly benefiting from its recent surge in mineral and commodity prices.

In the investing news today not only in Australia but all over the world, gold seems to be enjoying the limelight as an ideal investment alternative since the Eurozone sovereign debt crisis and the continuous weakening of the US dollar. This has not always been the case for gold. In the first few years of the 21st century, gold was generally pushed aside in favor of more lucrative investments during that time. Investors would think “Why invest in gold bullion coins when I could get more profits from technology stocks and real estate?”

Since the great economic recession in the late 2000 however, the trading game has radically changed. Stocks and real estate investments are no longer as stable as they used to be. As for gold, it is once again being recognized for what it is – true, stable and safe money. Although the gold prices have more than tripled in price since 1999, this precious metal is still a valuable investment. Here are just some of the reasons why to buy  gold in Australia.

A Safe Haven Investment

Much have been said about gold as a safe sanctuary for investors around the world during economic uncertainties. Gold has long been considered as a store of value and is less volatile compared to stocks and currencies which are two of the most widely traded financial instruments in the market.

A Good Hedge against Inflation

Unless you have been living in a cave for years, you’re probably aware of the climbing inflation rates of basic commodities and oil around the world. As this situation continues, investors begin to seek out assets that are less affected by inflation and that is gold.

Indestructible and Imperishable

One aspect of gold’s value is its physical strength and resistance. It does not corrode, rust, or tarnish. It is long lasting and does not rot or dissolve.

A Highly Liquid Asset

Gold is a universally accepted currency and can be easily bought and sold. This means that investors like you can have the alternative to trade gold for different currencies if necessary.

Protection against Currency Depreciation

When the US dollar weakens, a lot of investors consider gold as an alternative investment vehicle. They actually take advantage of the dollar’s weakening by trading it with gold.

More Affordable than Oil

The historical gold to oil ratio is 15.4 (1 oz of gold to 15.4 barrels of oil). According to experts, the gold bullion is presently trading at its historical average. However, the gold price for inflation is not even close to its 1980 high if you adjust it accordingly.

These are just some of the reasons why you should consider gold investment in Australia if you haven’t yet done so. Today’s financial experts recommend diversifying into gold to minimize risks during these turbulent times. And with the various ways investors can trade this precious metal; this definitely should have a place in any investor’s asset allocation mix.
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Start Gold trading in Australia in 3 ways

Traders today have a wide variety of instruments to maximize gold trading in Australia. The most obvious way to trade gold is by buying it in its physical form – that is, gold bars and coins. The problem with this however is the storage and costs during transactions, therefore making it a less convenient method.

According to the World Gold Council, the supply of gold from mine production in Australia recently experienced a marginal decline due to the lower grades of gold at older operations.

Now, if you are looking to get started in Australia gold trading, then three of the most popular options today are spot gold, gold futures and gold ETFS.

Spot gold

This is perhaps the simplest and most cost effective way to trade gold online. In spot gold trading, Aussie traders are not required to possess the physical gold. This means that they don’t need to deal with storage and transportation when trading spot gold.

If you have been trading currencies for a while, then spot gold trading won’t be an entirely new concept to you as it pretty much has the same method with currency trading. In spot gold trading, gold is paired with the US dollar wherein Forex, two currencies are paired together.

One thing you should take note however is that a great deal of people fail in spot gold trading mainly because of the improper use of leverage. Remember that while leverage can make substantial returns, it can also create huge losses if not managed the right way.

Gold Futures

The gold futures market is basically the market for gold at a certain date in the future. Gold futures trade on the Commodities Exchange (COMEX) in New York and is also a part of the Chicago Mercantile Exchange (CME) Group. These are primarily designed for quick speculation and hedging. And just like with spot gold trading, futures also make use of leverage.

Gold Exchange Traded Funds (ETFs)

Gold ETFs are traded on the New York Stock Exchange and the NASDAQ. A gold ETF like Gold Bullion Securities Australia works similarly to a mutual fund in that the fund itself purchases the gold and this precious metal is held in the premises of the investment company. Most ETFs require a minimum amount of investment as they are funds that hold the physical gold. The Gold ETFs that are available today include ETFS Gold Test (Ticker symbol SGOL), Powershares DB Gold Fund (ticker symbol DGL), SPDR Spider Gold Trust (ticker symbol GLD) and the iShares COMEX Gold Trust (Ticker symbol IAU). These ETFs can be purchased and sold through an Australian brokerage firm using market orders, limit orders and stop orders.

Many investors turn to gold ETFs as a means of diversifying their asset allocation. And as the Eurozone sovereign debt crisis and the weakening of the dollar continue, the year 2012 may provide different results for the precious metal and cause short gold ETFs to become more in demand.
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Live Gold Price Australia | Gold Rate Australia Today | Gold Price in Australian Dollar

Market Data: www.bullion-rates.com

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