FXFINPRO CAPITAL: Eternal values


Gold is the finest of metals..

Christopher Columbus. Letter to King Ferdinand.

Gold has always been and will be at the price. This fact has long been recognized as an axiom. Therefore, investing in gold is one of the most reliable financial instruments, and investing in gold bullion is the most popular of all types of investing in precious metals.

Gold is an item 11 of the sixth period of the periodic table of chemical elements DI Mendeleev , with atomic number 79. People extract gold from immemorial time. Mankind has faced with gold in the V century BC in the Neolithic period through to its spread in the native state . By assumption archaeologists the start of systematic extraction was in the Middle East, where gold jewelery supplied, particularly in Egypt . It was in Egypt in the tomb of Queen Zer and one of the queens of Pu - abi of Ur in Sumerian civilization found the first gold jewelry dating from the III millennium BC.

At the beginning of the 20th century, the gold trade has played an important role in China. In 1930, the Shanghai Gold Exchange was one of the largest centers for the trade of gold bullion and gold, in Asia has been very popular as an investment . On the market there was a daily fixed price of gold. With the creation of the People's Republic in 1949, the People's Bank of China has monopolized the trade in precious metals. In 2000, the PRC government has decided to resume regular gold market, and in 2001 ended the monopoly of the central bank's gold trade. With the establishment of the Shanghai Gold Exchange on October 30, 2002, the gold trade has expanded thus stimulating demand . Lifted the ban on trading in gold for private investors. In the next five years, China has overtaken the U.S. to India and became the second-largest buyer of gold in the world. In 2010, the trade turnover physical commodity (natural gold) amounted to 6,051.50 tons of gold which exceeds the volume of trade last year 2009 to 28.46%. On the Shanghai stock exchange of gold bullion was in the amount of 2,913.73 tons against 837.21 tons in the previous period. [1]

Today we have a unique opportunity to trade of gold on the famous Forex market. Of course , currency trading is the most familiar and easiest way to trade on any exchanges , but when you have a good grasp of the mechanisms and understand the basic levers of the market , sooner or later you stop to think about the trade of anything else. It should be noted that the rate of gold on the Forex is constantly changing , but in a more predictable range , than the exchange rate . In fact, gold trading allows you to earn more and more stable than you can imagine. Steady rise in gold prices makes this precious metal trading at Forex, perhaps the most promising type of earnings , attracting a large number of traders.

In order to start trading in gold on the stock exchange, as well as currency, you only need to open a position. However, the principle of such trade has its own characteristics and nuances, which will be discussed later.

To start, you need to choose the right strategy . For beginners, a suitable strategy is "to play on the news ." In other words , contracts for gold. You buy futures contracts, they are traded and this metal is better to buy for extended period of recession and do not pay attention if the price will fall further and further. Gold has a high volatility (statistical measure of the tendency of price volatility ), and requires a calm and thoughtful consideration . After a relatively long price decline , the probability of returning to their former positions , and even exceeding them , is very high. To successfully trade in gold, you need to know complex system of rendering the forecast price of gold, so you will know the causes that affect the quotation of the metal.

Also worth noting is that the volatility of the index may be calculated by a rather complicated formula, however, in the case of gold, just look at the price chart for a specific period of time. The zigzags of the curve clearly show the high volatility.

This is the feature of this metal is that it is the most responsive not only to changes in the economy, but also on political events.

We list the main factors influencing the formation of the price of gold:

    • Macro-economic crises (global financial crisis). Thanks to these crises, gold prices are always increasing.
    • The dollar value (this world currency, the pair of dollar is gold, when dollar becomes cheaper, gold becomes more expensive).
    • The geopolitical situation (for example, a series of revolutions in the Middle East provoked the jump rate of gold).

The latest multifunctional trading software platforms enables traders to work remotely in real time in any market, including Forex, CFD, futures and stocks. These terminals provide the means to be present in the market at any point in time track the desired commercial information and make trading deals directly, in compliance with all necessary terms and conditions.

FXFINPRO CAPITAL offers the customers the opportunity to trade on the two well-known platforms: FXFIN Protrader and MT4. The unique trading platform FXFIN Protrader lets all our clients easily manage their assets, enter positions, preform technical analysis, create, test and improve their own trading strategies, including for gold. You can also open a demo account and gain experience in the trade of gold, without any cost.

Appeal of the game on a course of gold is that in this case, you can create forecasts for changes in prices through technical analysis or by using automated advisers.

Finally, remember that the "golden rule" in the gold trade in the Forex market is a correlation between the price of gold and the U.S. dollar (xua and usd).

In this article we have tried to describe in detail all the benefits of the gold trade in Forex, but it is worth noting that trade in precious metal and has a special place in the fund market, where gold acts as a real asset. This will be discussed in our next article.

If you have not had time to see all the benefits of trade in gold, do not be afraid to explore new horizons. FXFINPRO CAPITAL helps you understand all the intricacies of the game and expands your understanding about the limitless possibilities of Forex.

[1] Wikipedia, the free encyclopedia

RISK WARNING: Trading of complex financial products, such as Stocks, Futures, Foreign Exchange ("Forex"), Contracts for Difference ("CFDs"), Indices, Options, or other financial derivatives, on "margin" carries a high level of risk, and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading these markets, and seek advice from an independent financial advisor if you have any questions or doubts. Please carefully read our full "Risk Disclosure" and "Risk Disclosures for Financial Instruments & Investment Services". FXFINPRO Capital is the trading name of PFX Financial Professionals Limited, a limited liability company formed under the laws of Cyprus, registered with the Registrar of Companies in Nicosia, Cyprus, under nr. HE 237840 and regulated by the Cyprus Securities and Exchange Commission with license number 193/13.