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Should you invest in gold in 2021?

2022-03-22
2029
  1.What kind of investment product is gold?

  Since ancient times,people have had a natural preference and favor for gold.In the eyes of the ancient Egyptians,gold was"the sun that can be touched",and in the eyes of the ancient Romans,gold was the name of the goddess of dawn.Some people have done statistics"Bible"in more than 400 references to gold.After entering modern times,gold as a symbol of wealth is even more deeply rooted in the hearts of the people.Marx mentioned in"Das Kapital":"Gold and silver are naturally not currency,but currency is naturally gold and silver."

  At present,in addition to central banks of various countries using gold as a strategic reserve,individual investors have gradually become a trend to buy and sell gold.People either hold gold for a long time to fight inflation,or earn the price difference through large fluctuations in gold prices,because gold trading terms In the global market,almost no institutions and bookmakers can manipulate it,so it has good investment value and value preservation.

  2.When is gold worth buying?

  Since ancient times,“Prosperity to collect,chaotic times to prosper gold”is a principle that investors hold as a guide.Because gold has the properties of preserving value and anti-inflation,when the social order is turbulent or hyperinflation breaks out,buying gold is almost an infallible choice..

  In 2021,benefiting from the promotion of vaccines and the infinitely loose monetary policies of various countries,the global economy will begin to recover.At the same time,global commodity prices continue to hit record highs.The US WTI crude oil,which previously set a record of"negative oil prices",has risen from$20.To around$80,as the mother of inflation,soaring oil prices and commodities have made inflation expectations in financial markets more intense.

  Gold is an important anti-inflation asset and an interest-free asset.The market risk-free interest rate is the opportunity cost for investors to hold gold.When the risk-free interest rate rises,the gold price is under pressure and downward,and when the risk-free interest rate falls,the gold price will be supported.Similarly,gold and inflation are also positively correlated.When inflation expectations rise,gold prices will rise significantly,and when inflation expectations fall,gold prices will also fall sharply.In the short term,the U.S.CPI will record a relatively fast growth rate in the near future.If the U.S.CPI continues to rise,it can push up the market’s expectations for gold prices.A sharp sword hangs over the gold price.Changes in inflation have become the incentive for the Fed to tighten the currency ahead of schedule,and several companies will usher in more twists and turns.

  3.What should investors pay attention to when investing in gold?

  With the popularity of electronic transactions and the adjustment of precious metal business by major banks,the channels for investors to invest in gold are also gradually changing.In the earliest days,investors were more buying and selling physical gold and"paper gold"from banks.However,due to the difficulty of saving physical gold and the high transaction costs,this method is gradually eliminated by the market.In 2021,the business of various banks in the field of precious metals will gradually shrink.Many banks have announced the launch of paper gold and other services,and choose overseas platforms to trade gold.The city's first choice for investors.

  Investors should pay attention to the following key points when choosing to invest in gold:

  First of all,it is necessary to choose a safe and stable trading platform.It is best to have exclusive customer service to serve and track investors,which can effectively help investors get through the"novice period"and grasp the trading rules of the gold market.

  Secondly,pay attention to learning the two-way trading mechanism of the gold market.In the current mainstream platforms,gold trading is basically two-way trading with leverage.Investors can choose to buy up or short according to changes in the market.,but the concept of short selling is relatively unfamiliar to traditional stock traders.How to make good use of the two-way trading mechanism to achieve profits in both ups and downs is the first lesson for investors to learn when entering the market.

  Third,the price of gold,as an international trading variety,is greatly affected by market emergencies and fundamental events.In terms of data,there is a well-known"non-agricultural large and small".The macro aspect is subject to changes in monetary policies of various countries,especially the United States,and geopolitical events will be affected by emergencies.When many factors are intertwined,how to screen market information,Before the big market comes,expect the enemy to take the lead,and advance the layout is the only way to use gold investment to realize wealth appreciation.

  Finally,most of the current gold market is leveraged trading,which is a source of profit and a"double-edged sword"with no return.If you want to obtain excess returns in gold investors,you will use leverage,and making good use of leveraged investment is the key to the key.Illusory like a valley,invincible and chasing ups and downs,closing your eyes Stud may only be a line.

  Trading is the accumulation of experience,and it is also a spiritual practice.Learning to cut in accurately in the rapid changes of the market,and staying awake when everyone is greedy may be a required course for each of us to invest in gold or events.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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