Everyday ITM Trading is helping many people avoid gold coin rip offs. The price of gold has risen tremendously and with that comes the scams. There are ways to avoid them and protect you and your family.
Always do your homework on a company. Make sure it’s been around for at least 10 years if not more. There are many gold operations popping up just about everywhere.
Using the Internet and the BBB is a great way to start researching different businesses of interest. Read reviews from other customers. Remember some complaints are normal due to no company is perfect nor can they satisfy everybody.
Stay away from businesses that pressure you to send them money. These places are more than likely a scam and you will get nothing in return. Ask about upfront charges. Some businesses will hide their high fee charges. A reputable business will be honest and upfront.
Guarantees are another scam. A business that guarantees profits should be avoided or thoroughly researched. No one can predict what the gold market will do. Just because past performance has excelled, it still does not guarantee a profit for you.
Depending on a persons needs and goals is the determining factor of which gold product is best. There are different products to choose from but a person’s goals are the deciding factor.
If looking to sell your gold jewelry at a “cash for gold” store make sure you research the business and it’s history with other customers. The average payout is 50-65% of the spot price but some could try to pay you less.
Any questions or concerns can be answered by calling ITM Trading. We have been around for over 16 years and our knowledgeable staff is here to serve you.
Showing posts with label gold market. Show all posts
Showing posts with label gold market. Show all posts
Wednesday, December 14, 2011
Thursday, June 9, 2011
Understanding Gold Futures Market
The futures market is usually deemed a high risk investment but that is quite relative; others may view futures as a hedge against fluctuating and uncontrollable pricing.
Futures refer to the obligation of buying or selling a committed amount of commodity at a preset price on a particular day.
A gold futures contract is really a bet on gold price trends and has nothing to do with the physical metal, which does not concern the trader. Hence, futures trading is really a speculation rather than an investment.
Some traders view futures as a risk inhibitor. Gold mining firms that sell gold at some fixed price can hedge themselves from falling gold prices with futures trading. But many futures traders reap huge profits while being mindful of the risks attached. Those who wish to indulge in futures trading must be ready to take on those risks.
The saying is sure that a big gain opportunity is always balanced by a big loss possibility. However, futures trading is not really for the individual as the stakes are very high with unpredictable results. It is the leverage in futures contract that constitute the big gain opportunity and big loss possibility phenomenon (hedge funds realm).
Leveraging refers to the utilization of a small sum of money for a huge investment return. Hence, a gold contract of $35,000 would cost you $3,500 (minus fees and commissions) with a leverage of $31,500.
A small 10¢ gain of your contract, your investment value goes up by $10. For gold, it is possible for its price to swing $100 during the contract’s lifespan. Hence, for a price increase of $100, your investment value would increase to $10,000 to give you 300% gain.
But, the opposite can also happen; a price drop will incur a heavy loss in value which you would have to bear. Hence, leverage offers a seemingly easy and quick way to multiple your small investment, but it can also pull you deep down in serious financial losses quickly.
Futures contracts do offer an opportunity to traders to make a profit from the gold price increase and decrease. An investor expecting a price increase is said to be taking a “long” position while the one who expects gold price to drop will take on a “short” position.
There is “future” in the futures market. Futures contracts normally last only one year or less. Gold futures contract trading does not involve any physical gold delivery. Hence, it is normal for a trader to close out his position prior to the delivery date. Very few futures contracts last up to their whole lifespan. To close out, you will need to sell your contract.
The U.S. has eleven futures exchanges with two gold futures trading in New York and Chicago only. Overseas futures markets which trade in gold are also abundant.
Futures refer to the obligation of buying or selling a committed amount of commodity at a preset price on a particular day.
A gold futures contract is really a bet on gold price trends and has nothing to do with the physical metal, which does not concern the trader. Hence, futures trading is really a speculation rather than an investment.
Some traders view futures as a risk inhibitor. Gold mining firms that sell gold at some fixed price can hedge themselves from falling gold prices with futures trading. But many futures traders reap huge profits while being mindful of the risks attached. Those who wish to indulge in futures trading must be ready to take on those risks.
The saying is sure that a big gain opportunity is always balanced by a big loss possibility. However, futures trading is not really for the individual as the stakes are very high with unpredictable results. It is the leverage in futures contract that constitute the big gain opportunity and big loss possibility phenomenon (hedge funds realm).
Leveraging refers to the utilization of a small sum of money for a huge investment return. Hence, a gold contract of $35,000 would cost you $3,500 (minus fees and commissions) with a leverage of $31,500.
A small 10¢ gain of your contract, your investment value goes up by $10. For gold, it is possible for its price to swing $100 during the contract’s lifespan. Hence, for a price increase of $100, your investment value would increase to $10,000 to give you 300% gain.
But, the opposite can also happen; a price drop will incur a heavy loss in value which you would have to bear. Hence, leverage offers a seemingly easy and quick way to multiple your small investment, but it can also pull you deep down in serious financial losses quickly.
Futures contracts do offer an opportunity to traders to make a profit from the gold price increase and decrease. An investor expecting a price increase is said to be taking a “long” position while the one who expects gold price to drop will take on a “short” position.
There is “future” in the futures market. Futures contracts normally last only one year or less. Gold futures contract trading does not involve any physical gold delivery. Hence, it is normal for a trader to close out his position prior to the delivery date. Very few futures contracts last up to their whole lifespan. To close out, you will need to sell your contract.
The U.S. has eleven futures exchanges with two gold futures trading in New York and Chicago only. Overseas futures markets which trade in gold are also abundant.
Monday, March 7, 2011
Market Intelligence on Gold
The World Gold Council has established its authority on most issues related to gold, such as its price, trends and uses. It is able to advise stakeholders and investors on the key market aspects of gold with sufficient analysis and authority. The right market intelligence is imperative for strategic decisions which may impact the economy.
The global demand for gold has always been centered on jewelry, technology, investment (buy gold coins) and reserves in central banks. Detailed and accurate analysis of the trends in the supply and demand of gold is crucial for all stakeholders.
Market Forces
There are many factors that impact gold’s value. One is the regional supply and demand that is dynamic like China’s gold consumption in 2009, which used 428 tons for its jewelry and investment sectors. Although China has been the largest gold producer in the world since 2007, its demand has overtaken its supply every year. If China’s demand for gold continues at this rate, its consumption will easily double within the next decade.
But in India, gold has always been an essential entity in the life of its people as a symbol of security and prosperity. Gold has always had appeal throughout the Indian community across social strata and generations, as gold jewelry is the favorite tradable liquid investment. India is currently the world’s leading consumer of gold. The trends in the demand and supply of gold, especially in countries such as India and China, will definitely impact the global gold market.
Investment Research
Research on gold and its trends is very important for investors who need to know the gold market dynamics and its investment properties as a premium asset. Investment papers examining the special characteristics of gold are published for stakeholders to identify gold’s value, its function as an inflation hedge and its diversification of portfolio for investment purposes.
Government think-tanks, industry experts and prominent academics work together to provide further insights into gold to advise central bankers, investors, regulators and even policymakers all over the world.
From these panels of experts on gold, it has been determined that gold is an asset class with high return potential at any risk level. The Center for European Policy Studies, through its research, also concluded that there will be other motives besides hedging against inflation to drive gold prices upwards. It could very well be Asia’s economic growth, which will display the higher demands for gold in the midst of an uncertain financial market. Hence, gold prices are expected to continue upwards as investment demand increases from the private sector as well as from the official investors.
Technological research is promoting gold not on in its electronic applications but also in climatic and environmental issues, where gold is effective in supporting emerging technological solutions.
The global demand for gold has always been centered on jewelry, technology, investment (buy gold coins) and reserves in central banks. Detailed and accurate analysis of the trends in the supply and demand of gold is crucial for all stakeholders.
Market Forces
There are many factors that impact gold’s value. One is the regional supply and demand that is dynamic like China’s gold consumption in 2009, which used 428 tons for its jewelry and investment sectors. Although China has been the largest gold producer in the world since 2007, its demand has overtaken its supply every year. If China’s demand for gold continues at this rate, its consumption will easily double within the next decade.
But in India, gold has always been an essential entity in the life of its people as a symbol of security and prosperity. Gold has always had appeal throughout the Indian community across social strata and generations, as gold jewelry is the favorite tradable liquid investment. India is currently the world’s leading consumer of gold. The trends in the demand and supply of gold, especially in countries such as India and China, will definitely impact the global gold market.
Investment Research
Research on gold and its trends is very important for investors who need to know the gold market dynamics and its investment properties as a premium asset. Investment papers examining the special characteristics of gold are published for stakeholders to identify gold’s value, its function as an inflation hedge and its diversification of portfolio for investment purposes.
Government think-tanks, industry experts and prominent academics work together to provide further insights into gold to advise central bankers, investors, regulators and even policymakers all over the world.
From these panels of experts on gold, it has been determined that gold is an asset class with high return potential at any risk level. The Center for European Policy Studies, through its research, also concluded that there will be other motives besides hedging against inflation to drive gold prices upwards. It could very well be Asia’s economic growth, which will display the higher demands for gold in the midst of an uncertain financial market. Hence, gold prices are expected to continue upwards as investment demand increases from the private sector as well as from the official investors.
Technological research is promoting gold not on in its electronic applications but also in climatic and environmental issues, where gold is effective in supporting emerging technological solutions.
Wednesday, June 30, 2010
Options for Gold Traders
Gold traders have been witnessing a bull market, with the global demand for gold surging 36%, or by $29.7 billion, in the first quarter of 2010, according to the World Gold Council (WGC). Demand for gold ETFs (Exchange Traded Funds) has spiked 540%. According to a WGC report, the demand for gold is expected to be bulling in 2010, backed by spiraling jewelry demand in India and China.
Gold Traders: Investment Options
There are several ways to invest in the gold market, which makes it necessary to comprehend each option and find the one that best suits one’s needs. Gold traders commonly deal in the following options:
• Gold bullion bars: Available in different weights, with varying gold and alloy compositions, gold bullion bars are the purest form of the metal. Consequently, the price of gold bullion bars tend to be very high, which as of the end of June, 2010 was around $1,242.
• Gold coins: These are minted by several countries. The US Mint gold coins, such as the gold Eagles, are the most commonly traded options. According to the WGC, 28,000 half-oz Eagles were purchased till mid-June 2010.
• Gold jewelry: The price charged by gold traders on jewelries depends on the gold content as well as the craftsmanship. Jewelry investment has become popular, with a market size of $613 million in the US alone, according to US census data - 2010.
• Gold Exchange Traded Funds (ETFs): Purchasing gold ETF is similar to investing in a regular stock. ETFs enable investors to paper trade the physical bullion. However, most ETF gold traders charge an annual account fee in addition to transaction charges. Gold ETFs have flourished since April 2010 due to the European fiscal crisis. On May 20, 2010 SPDR Gold Shares held a record of 1,200 tonnes, valued at US$46.88 billion.
Finally, gold traders can invest in the yellow metal by purchasing the stocks of a gold mining company. Gold trader invest in gold mutual funds with the intention of diversifying their risk on gold stocks. These entail investing in multiple gold or other precious metal mining companies.
Gold Traders: Investment Options
There are several ways to invest in the gold market, which makes it necessary to comprehend each option and find the one that best suits one’s needs. Gold traders commonly deal in the following options:
• Gold bullion bars: Available in different weights, with varying gold and alloy compositions, gold bullion bars are the purest form of the metal. Consequently, the price of gold bullion bars tend to be very high, which as of the end of June, 2010 was around $1,242.
• Gold coins: These are minted by several countries. The US Mint gold coins, such as the gold Eagles, are the most commonly traded options. According to the WGC, 28,000 half-oz Eagles were purchased till mid-June 2010.
• Gold jewelry: The price charged by gold traders on jewelries depends on the gold content as well as the craftsmanship. Jewelry investment has become popular, with a market size of $613 million in the US alone, according to US census data - 2010.
• Gold Exchange Traded Funds (ETFs): Purchasing gold ETF is similar to investing in a regular stock. ETFs enable investors to paper trade the physical bullion. However, most ETF gold traders charge an annual account fee in addition to transaction charges. Gold ETFs have flourished since April 2010 due to the European fiscal crisis. On May 20, 2010 SPDR Gold Shares held a record of 1,200 tonnes, valued at US$46.88 billion.
Finally, gold traders can invest in the yellow metal by purchasing the stocks of a gold mining company. Gold trader invest in gold mutual funds with the intention of diversifying their risk on gold stocks. These entail investing in multiple gold or other precious metal mining companies.
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