What is gold?
The value of gold fluctuates minute by minute. Whether it’s held in physical form as a piece of jewellery or in a portfolio at a broker, the price keeps on changing, sometimes quite dramatically.
That creates opportunities for investors to make a profit by speculating outright on the metal’s next price move. Others buy gold as a ‘hedge’. The conventional thinking is that if your portfolio is weighted towards equities and the stock market tumbles, you might see your gold holding rise in value. One reminder that you can never take markets for granted comes from recent events where gold’s role as a contrarian asset was challenged. During the major market sell-off of March 2020 gold prices fell in line with other asset groups.
This article digs deeply into the role that gold plays, why you might want to improve your understanding of the asset’s many unique features and how you can gain exposure to it. When you feel ready to start investing in gold, the CFD markets offered here are an excellent place to start. You can trade gold and gold-related assets using live funds, or develop your trading skills using a Demo account.
Reprinted from eToro, the copyright all reserved by the original author.
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