Trading Gold Online
There are a lot of opportunities to trade gold online. Many individuals think of gold trading as buying the tangible metal and storing it securely in a physical safe. For centuries, this has been true for many. However, gold trading online has more complexities to it than simply purchasing a solid yellow metal block. It’s possible to trade in a range of different gold assets and access multiple markets to do so. As such, it’s important to understand what kind of gold assets exist when it comes to online trading platforms. This will give you a better idea of how you wish to trade in gold.
Types of Gold Assets
There are a number of gold assets that are prominent on online trading platforms in the UK. It is possible to invest in gold or trade in gold – two different ways in which to take a position that have diverging approaches. When you invest in gold, you buy the actual asset and profit off of it when the price of gold increases. When you trade gold, you are required to take a position on the price of gold and will profit depending on which direction the value of gold moves. You will not purchase the asset in this instance. For our purposes, we’re going to focus on gold trading online. Below, we’ve highlighted several different types of gold assets that you can access and trade online.
In a spot market, you buy or sell an asset based on the current price at that moment in time. Trading spot gold is one of the best ways to gain exposure to ‘bullion gold’ without having to purchase the actual asset outright.
Trading in gold stocks is a fantastic way to gain wide exposure to the gold industry. When you trade gold stocks, you are exposed to the entire process from mining to sales. Bear in mind that gold stocks don’t always follow the same trend as bullion because there are a variety of factors that affect the stock price.
If you are an experienced online trader, you’ll immediately begin to understand how gold assets are traded based on the terms used. If you are a beginner, gold futures allow you to exchange gold on a future date for a fixed price. Keep in mind that the only variable in this is the price of gold. The actual quantity and quality remains the same.
Similar to gold futures, however you are not obligated to hold up your end of the deal. You have the option of buying or selling the precious metal at a predetermined price on a specific date. There’s no need to actually execute the trade, as is the case with options trading.
You can trade a basket of shares of publicly traded gold mining. This gives you wider exposure than you would manage to attain when taking a single position. It allows you to diversify your holdings and represents a passive investment.
Factors That Affect The Price Of Gold
Understanding the factors that affect the price of gold will enable you to trade gold with a refined trading strategy. The less is left to guesswork, the better. Although you might find yourself speculating on the price, applying these factors allows you to speculate to a much closer degree. Taking into account mitigating factors is the first step to trading gold more successfully and potentially increasing your returns.
Rate of mining production
It’s important to take into account that the supply of gold is finite. Other commodities can be grown and cultivated. However, the rate at which gold is mined is declining year-on-year. This is to be expected. However, gold will always remain in circulation with much of it being recycled to meet demand. If demand for gold continues to rise and supply continues to fall, the price inevitably increases.
If interest rates increase, traders prefer to trade in fixed-interest assets. Therefore, the price of gold falls. Conversely, as interest rates fall, the price of gold increases. Keeping an eye out for policy changes is a great way in which to foresee changes in gold prices.
Political and financial instability
As political and financial instability comes to the fore, many turn to gold. The increased demand for gold in this event pushes the price up. This is due to the fact that gold, as we’ve seen over past decades, retains its value when other markets take a substantial knock.
All in all, the state of global demand will have an obvious effect on the price of the precious metal. Over the last 50 years, global demand for gold has increased substantially. Much of this can be attributed to consumer preference for jewellery. A smaller percentage is apportioned to the fact that there is an increase in gold trading online through ETFs and the like. The higher the global demand for gold, the higher the price.
Understanding these factors allows you to analyse a variety of potential outcomes and gives you a leg-up when you start to engage in gold trading live.
Finding A Gold Trading Platform
The next step in the process of starting to trade gold is finding an online trading platform. In the UK, there are a variety of online brokers that have fantastic trading platforms that allow you to embark on gold trading live. You’ll be able to access a number of markets and gold assets. It’s possible to use market analysis and a range of trading tools on these sites. Combining your own knowledge and the services and features available on gold trading UK sites is the best way to start your endeavour.
At TradersBest, we have highlighted the best online broker by way of our detailed broker reviews. In these reviews, you’ll find out all you need to know in order to choose the best possible trading platform. From getting involved with gold trading live to trading in a host of different products and markets, our reviews have it all.
How Do We Test Gold Trading Platforms?
Our reviews are the product of a detailed analysis and assessment. We have managed to create a uniform testing tool and approach which assesses the fundamental areas of each online trading platform. Not only do we look at the available trading products that you’ll have at your disposal, but we also test the operational aspects of the site. You’ll know exactly which trading platforms excel when it comes to customer support, security, payment offerings, associated fees, and more. Below, we’ve highlighted these facets which we deem as being non-negotiable for any promising trading platform.
Usability and feel
When it comes to the usability and feel of a platform, we test the platform’s capabilities as well as the aesthetic appeal. You don’t want to get bogged down by a platform that isn’t streamlined and logically set up. We’ll outline the design process and the usability of the platform. Is it easy to navigate? Are there practical trading tools? Can you execute trades conveniently? In this day and age, an online trading platform should be robust. You’ll find that we also test the trading platform and bring your attention to any mobile trading app that might be available to you.
Before you are able to think about gold trading live, you’ll need to fund your trading account. As such, we’ll outline all the available payment options that are available on the respective trading site. This will enable you to make use of a secure and reliable method so as to fund your trading account. From here, you can start to trade in instruments and markets that you are interested in. Be sure to use safe payment options that facilitate quick deposits and withdrawals.
Without customer support in place, a trading platform will fall at the wayside. Our team highlights all the available contact options that you’ll have as well as how responsive the actual support team is. This gives you a better idea of how to get in touch if you ever experienced a trading issue. This might just be a query or minor account problem. Regardless, a top-notch support structure makes your life that much easier.
Licensing and security
It is imperative that you use a trading platform that is licensed. There’s no need to use a gold trading online platform that does not meet the required regulatory standards. If this is the case, you’ll find that you might open yourself up to external risk which should be avoided at all cost. Use our featured online trading platforms so as to ensure that this is not the case.
We assess all the available trading products on hand. From gold trading live to crypto trading and more. If you are looking to engage in gold trading online but also want to trade other assets, then use this section to find a diverse offering from a reputable platform.
Trading and account fees
Unless you are after commission free stock trading UK, there are bound to be certain account and trading fees. Even with commission-free stock trading, you’ll need to assess the cost structure of any platform. We’ll outline all the important fees that you can expect to pay; from spreads to inactivity fees and withdrawal fees. This will give you a better insight into the platform’s policies and you can take these costs into account when trading.
Tips For Gold Trading Online
Below, we have outlined two tips for gold trading online. There are a number of factors that come into play when you engage in gold trading live. Using our tips and your own research will allow you to take advantage of trading opportunities as they present themselves and limit your exposure on other occasions.
It’s important to take into account socio-economic market sentiment. If the global outlook for economic and political stability is negative, gold prices may well increase as many look elsewhere for a stable asset – gold being one of them. If global market sentiment is positive, then investors and traders are less likely to buy gold. This leads to a devolution of the price of gold. Staying in tune with current affairs and market sentiment gives you a better perspective of the possible changes in the price of gold.
Using technical analysis
Using technical analysis, you are able to map the trend of gold prices over a certain number of years. It’s important to match your technical analysis with market conditions. Applying chart patterns, trendlines, and historical highs and lows, allows you to map out future movements and better assess which way the price of gold is set to move. Technical analysis can be complicated at first. We recommend you take the time to inform yourself so as to utilise these tools to the best of your ability.
Conclusion – Gold Trading UK
In conclusion, gold trading online can be a lucrative hobby or profession. One of the most liquid markets in the world, gold trading allows you to trade in a variety of gold assets. It’s possible to speculate on the price movement of gold or trade in ETFs that include a number of industry elements. Gold continues to thrive as a precious metal that has an intrinsic value attached to it. In the face of economic and political uncertainty, gold has always been an asset that many see as a safe haven. By using a reliable platform for gold trading live, you’ll have access to a range of assets and gold markets.
If you’d like to find out more about online trading in the UK, take a look at our guides on forex trading in UK as well as where to find the best CFD trading platform. At TradersBest, our team is always looking for new topics which will help you understand the online trading landscape and improve your own outlook at trading strategies.
Gold Trading UK FAQ
👀How does gold trading online work?
There are several approaches and types of gold assets that you can trade in. Trading in gold does not necessarily mean you purchase the actual asset and receive a quantity of tangible gold. With the latest gold trading UK sites, you can speculate in the price movement of gold. To find out what types of gold trading options you can engage in, take a look at our latest guide to gold trading online.
🔮What is the best gold trading platform?
You’ll find that there are a number of online trading platforms in the UK. Many of these will allow you to access gold trading live via a number of different approaches. The best gold trading platform is accessible and provides you with a streamlined trading process. You’ll be able to decide how you wish to trade gold and utilise innovative trading tools as you do. At TradersBest, we have compiled a list of the best gold trading live platforms. We also have comprehensive reviews which give you a closer look into the operations of each of our featured online trading platforms.
💷What affects the price of gold?
You will find that there are a host of factors that affect the price of gold trading UK. These factors can move the price in the short term or long term. It’s important to understand these factors so that you can analyse different aspects and have the necessary foresight when trading gold live. We suggest you take a look at our latest guide and comparison to gold trading UK to find out more. Remember, it’s important to stay informed and up-to-date with the latest market developments so that you can trade more successfully.
❓What are the different types of gold trading UK options?
As we’ve alluded to, there are different types of gold asset trading options. In our review, we’ve outlined these different assets that are attached to gold. This will give you a better idea of what kind of trading strategies and approaches you should adopt depending on the gold asset you choose to trade with.
🌟Is gold trading profitable?
Gold trading, as is the case with trading in other markets, can be profitable. It is possible to make a return on your investment or day-to-day trades. But, there are a number of things you need to assess first. Informing yourself and crafting a relevant and suitable strategy is of utmost importance. Diving headfirst into gold trading online is not the best idea. This is why we have tailored an in-depth guide to gold trading UK. You’ll find out more about the topic, where to engage in gold trading online, and a number of useful tips that you can put into motion.