Close Menu
Basic Finance Care

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    The Rise of Digital Wallets: How They are Changing Payments

    May 2, 2025

    Why Smart Finance Firms Hire Expert Financial Writers (And You Should, Too!)

    April 29, 2025

    Bankruptcy Costs: What You Need to Know Before Filing

    March 21, 2025
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    Basic Finance CareBasic Finance Care
    SUBSCRIBE
    • Home
    • About Me
    • Contact Us
    • Hire Me
    • Blogs Accepting Guest Posts
    • Submit Finance Guest Post
    Basic Finance Care
    Home » Gold Options
    Personal Finance

    Gold Options

    James PaulBy James PaulJune 17, 20133 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The stock exchange market is a wild field were one can make a lot of money. But the first thing that you should know when you come across Commodities, as opposed to stocks, currencies and indices, they derive their value from intrinsic properties rather than associated ones. That’s way the value of a penny or a cent often greatly exceeds the value of the metal from which it is made, whereas the value of gold is directly related to intrinsic characteristics, such as weight and purity. Due to the fundamental value of gold and its limited availability, gold’s minimum value is thought to exist below which a troy ounce of gold should not fall. As such, gold serves as a secure asset which is associated with a value surge when the market suffers from uncertainty.

    So what is the real worth?

    The tangible value of gold versus the conceptual fundamental value of other is what might be said to define the movements in its value. A rule of thumb is that the price of metal commodities, gold in particular, is exquisitely sensitive to fluctuations in underlings with associated values. If an important central bank announces a round of quantitative easing, a reduction in interest rates or an increase in money printing, investors might turn to solid commodities to mitigate the risks of inflation or stock devaluation. The economic crash of 2008 was indeed followed by a sharp increase in gold price as investors lost confidence in the market.

    Demands in the market- should I invest?

    Gold is a very unbalanced and essential commodity. It has been reported to have had a diverse demand from global markets by the World Gold Council’s first quarterly (Q1) report of 2013. Although a significant increase in the Far East and the Middle East has been reported for gold jewelry, a total demand of gold has gone down 19% in comparison with the 4th quarter of 2012. Some have suggested that this trend implies an increase in consumption coupled with a decrease in investors’ anxieties, and an overall cautious vote of confidence in the recuperation of the world’s economy. Following this logic, gold proves itself as a bet-hedging strategic investment at uncertain times that can reclaim its value, even at a relative loss, when markets recover- much like an insurance policy.

    Things to be aware of 

    When considering trading binary options with gold as an underlying, it is important to be attuned to the level of uncertainty that exists in the market. As a non productive, though volatile underlying, gold options could be generally thought of as prone to sharp increases in value and rather soft following decreases. However, when trading in binary options over very short periods of time, and considering the volatility of gold (which is known to fluctuate by 30%), this proposed trend might not hold true, especially when obvious entry points, such as imminent inflation or austerity plans are announced, do not present themselves. As such, considering price fluctuations and the psychology of gold acquisitions, investing in gold, binary options holds a certain risk but also a significant potential benefit to the shrewd investor.

    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    James Paul
    • Website

    Related Posts

    The Rise of Digital Wallets: How They are Changing Payments

    May 2, 2025

    Creating a Trust in Canada: Key Steps and Legal Insights

    January 21, 2025

    What is Financial Literacy?

    December 31, 2024

    Tips to Create the Best Budget for Christmas

    December 10, 2023

    How To Be Financially Secure?

    November 13, 2023

    Why Every Working Canadian Should Consider Long-Term Disability Coverage

    October 23, 2023
    Add A Comment

    Comments are closed.

    Don't Miss
    Personal Finance

    The Rise of Digital Wallets: How They are Changing Payments

    May 2, 2025

    E-wallets, or virtual wallets, are revolutionizing the way we pay and store money. They are…

    Why Smart Finance Firms Hire Expert Financial Writers (And You Should, Too!)

    April 29, 2025

    Bankruptcy Costs: What You Need to Know Before Filing

    March 21, 2025

    From Injury to Settlement: 5 Key Steps to Maximize Your Slip and Fall Claim

    March 11, 2025
    Our Picks
    Stay In Touch
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Demo

    Subscribe to Updates

    About Us

    I’ve managed to graduate college free of student loans. My mission is to make people understand importance of money management and take sound financial decisions.

    This blog is my attempt to help to be prudent while dealing with saving, debt, credit, investment, insurance, spending or any financial issue. I am here to make your financial life to be sound and secure.

    If you like the articles posted here and interested to hire me for your content writing projects, feel free to contact me.

    Our Picks

    The Rise of Digital Wallets: How They are Changing Payments

    May 2, 2025

    Why Smart Finance Firms Hire Expert Financial Writers (And You Should, Too!)

    April 29, 2025

    Bankruptcy Costs: What You Need to Know Before Filing

    March 21, 2025
    New Comments
      Facebook X (Twitter) Instagram Pinterest
      • Home
      • Contact Us
      • About Me
      © 2025 Designed by Basic Finance Care.

      Type above and press Enter to search. Press Esc to cancel.