investing in gold on the stock market
You can invest gold on the stock exchange with ETFs (exchange traded Funds). These investment funds on the stock exchange report a stock market index. You have the choice between two types of ETF to invest in gold:
ETFs investing in the shares of gold companies: gold mines, as well as exploration companies, generally offer shares to buy;
ETS for investing in gold futures: These ETFs aim to reproduce gold prices faithfully. ETFs, such as Amundi Physical Gold, Xtrackers Physical Gold, and Wisdom Tree Physical Gold, are within your reach.
You can then invest in gold only with a simple securities account at home. You can also use leverage to increase the return on your investment. Indeed, the leverage effect refers to an investment beyond the initial bet. For example, an investment of 1000 euros can allow you to buy 2000, 3000, or even 10,000 euros. Thus, you quickly multiply your winnings. You can use certain ETFs to benefit from such a technique.
You have other financial instruments like the CFD to achieve such a task. Indeed, This works perfectly when the rally in gold is entirely perfect. Turbos can also be of great use to you for your gold investment. A turbo is a product whose cost depends on another, in this case, gold. They have the following specificities:
Maturity: this is not a mandatory characteristic. These are unlimited turbos.
The strike price: the amount is generally the same
You are multiplied by a pre-established ratio. But remember that the passage of gold below the knock-out barrier directly loses the initial bet. In addition, a move closer to the current price of the Knock-out Barrier enhances leverage. Similarly, you can use the turbos for gold price fall bets with or without leverage. You can also access the turbo only through securities accounts.
Investing in gold through cryptocurrencies indexed to the price of gold is also possible. This is possible through stablecoins. These virtual currencies aim to reproduce the price of a specific underlying. This underlying can be a cryptocurrency, a currency (the dollar), or even a raw material, like gold. You then have a panoply of cryptocurrencies whose purpose is to replicate gold. Thus, you have the choice between Tether Gold or Pax Gold. These cryptocurrencies offer a unique way of investing in gold.
Such an investment then brings stability to a naturally volatile cryptocurrency portfolio. You can also keep the gains obtained with other cryptocurrencies. This investment corresponds to people interested in investing in the medium or long term.
Gold trading tips for beginners
We hope you now have a good understanding of how to trade gold online. Here are five tips to follow if you are a beginner preparing to sell gold online.