A Better Tips For Buying Gold Part.II

The purchase of the paper gold reflects the evolution of gold without the actual possession of it. It is the best alternative between the buying physical gold and buying gold stocks. This is the convenient way to buy and sell gold by bypassing the unnecessary taxation. The purchase is very simple and it is similar that of buying a share and you can buy in volumes. In addition in case of insolvency of the issuer, the investor is compensated in gold.

 Now you may ask the question what will be the trend of gold in coming months?

 Before making any investment we have to see the technical analysis of the particular product. Technical analysis is the study of graphs of financial products and various indicators derived in order to anticipate the market trend in the near future. In September 2011 the gold touched its record to the high of $1921. Before investing you have to judge the long term trend and short term trend. Sometimes the long term trend may bullish where as the short term trend may be neutral or bearish. Hence we have to plan according to the signal of our technical indicator. If the signal is not clear don’t venture into it and wait for the clear signal so that we can follow a foolproof risk management for a success.

Last but not the least the physical gold has the following advantages. It is the only asset which provide as a safe haven against both inflation and deflation. Unlike other investments it is not affected by the political and social events and it is the only reliable source when major economic crisis occurs. If you are a materialistic and pessimist then you go for the physical gold. If you are a conservative and optimistic then go for the gold securities with the self time varying from several months to several years according to the signals of your technical analysis and that of your plan. I hope I have explained perfectly the rules and it is quite simple, effective and applicable to every individual.

A Better Tips For Buying Gold Part.I

Today we are going to more about the gold. Commodities such as gold, oil or food grains are on the rise in the recent years. The oil price is soaring obviously because of its increasing demand and its scarcity which causes an imbalance between supply and demand. Because of demand raises the prices very quickly. The similar happens in gold also. On one hand the excessive indebtedness of countries and the Currency crisis raise the importance of yellow metal and on the other hand the demand chiefly come from its safe haven of quality and rarity and also the speculation which amplifies the rapid movement of the rare metal.

 Then how can we invest in gold? There are three ways to invest in gold. The first and easy one is purchase of physical gold that is the gold bars are the coins etc. The second one is buying gold stocks and the third one is buying gold in “paper”.

 Buying of physical gold is of centuries old and is the wide spread traditional one. In this type of investments you can buy a kilo in lot or of five hundred grams or of pellets of lower denomination. Now days you can buy the bullion directly from a specialty shop on the internet or the special counters in our banks. The greater disadvantage in this type of investments is safety. You have to store them somewhere in our home or in safety lockers at your home. Keeping the gold in the safety lockers in the banks are not safe. Let us discuss the reason in some other post later.

 The purchase of precious metal is also speculation on gold. The share prices of gold does not always follow the price of the open market. It fully depends on the health of the financial market of that day. In the international market the price of the gold has increased in price around 3.91% from the starting of the year. Usually the precious yellow metal fully depends on the financial market and tends to follow according to the ups and downs of the financial market.

Trading Tips For Beginners

Most of the people physically go to their bank and investing in stocks. But the internet has democratized the stock investment and there are so many online trading services available right now anywhere in the world. They put it at our disposal; interfaces to purchase on a click of our mouse button and thereby increase responsiveness. The support is very important for this kind of virtual accounts. Most of the agencies offer online training and are furnishing stock analysis also. If you are a fresh hand then definitely you should join the forums to gather the user reviews about the market trend and the individual script. Before joining to any of the online trading services you compare the pricing, brokerage fees and other hidden charges. There are expenses that are applied to any order, either a purchase or a sale. Most of the online brokers give you access to different in vehicles, each of these has its own tax and service charges. Select the best which suits you. There are some specific rules to follow: Do not invest all your money at a stretch. Diversify your portfolio in different sectors. Do not set your goals too high (Don’t be Greedy). Learn how to make gains by selling even the market is weak. Keep up to dated in the market news and be responsive to that. Don’t follow the herd, judge and make your own opinion. Don’t hesitate to get the expertise suggestions and information.

Most of the people physically go to their bank and investing in stocks. But the internet has democratized the stock investment and there are so many online trading services available right now anywhere in the world. They put it at our disposal; interfaces to purchase on a click of our mouse button and thereby increase responsiveness. The support is very important for this kind of virtual accounts. Most of the agencies offer online training and are furnishing stock analysis also. If you are a fresh hand then definitely you should join the forums to gather the user reviews about the market trend and the individual script. Before joining to any of the online trading services you compare the pricing, brokerage fees and other hidden charges. There are expenses that are applied to any order, either a purchase or a sale. Most of the online brokers give you access to different in vehicles, each of these has its own tax and service charges. Select the best which suits you.

There are some specific rules to follow:

 

Do not invest all your money at a stretch.

Diversify your portfolio in different sectors.

Do not set your goals too high (Don’t be Greedy).

Learn how to make gains by selling even the market is weak.

Keep up to dated in the market news and be responsive to that.

Don’t follow the herd, judge and make your own opinion.

Don’t hesitate to get the expertise suggestions and information.

Stock Trading Tools

Before venture into share trading you have to know the basics of technical analysis. There three basics in technical analysis. The first and for most one is Japanese candlesticks. The graph of the stock price gives us some information. It rises and falls in a zigzag manner. The main advantage of Japanese candle sticks is, it provide us a direct reading about the psychology of the traders. This can decrypt the price movement over a given unit of time and can infer, in which side the market is in favor of? i.e. in favor of buyer or the seller. To construct a candle stick we have to connect the opening price at the closing of a trading secession usually daily. What we call this as true body if the market is bullish the graph is white and if the trend is bearish the candle will be black. From the color variation we can distinguish whether the market is increasing or decreasing. The extremes of the market session are represented by the thin lines called shadows. Form the different forms of the candlestick we can judge the market trend.

 What is interesting is the combination of Japanese candlesticks. For example, assume three Japanese candlesticks in succession, therefore the ‘real body’ is becoming smaller and the shadow is longer and longer. This implies the buyers are losing hand to the sellers and the reversal is going to happen naturally.

 Apart from this, for a better trading we need to know the market namely, the areas on which course many buyers appear and where the sellers offload. The support level is the price level which is horizontal where by the market is sufficiently attractive to the current buyer develops.

Resistance is opposite of the support level of prices where the selling price mounts which leads to the decline in the price. The support and a parallel resistor forms a channel, that is why we say buy at support and sell at resistance. A support and a parallel resistor form a channel. It is for this reason that they say you have to buy support and sell resistance.

 Other one we should know in the stock market reading is Moving averages. A simple moving average is an arithmetic average of the last x periods. For example a fifty days moving average is equal to the arithmetic average of the last fifties taken daily. It is called moving because in each period the new one replaces the course of the old one and this process continues. When the price breaks to increase the level of the moving average we can say the short term trend is reversing towards the trend is increasing in the medium term. This trend is favorable to the buyer. Conversely, when the price breaks down the level of the moving average, we say the short term trend is reversing towards the trend towards lower medium term which is favorable to the seller.

Don’t Buy Gold!!!

    Why should we not buy gold? There are so many reasons not to buy gold. One of the first reasons is that gold does nothing, and it remains in the bank or in our locker. The only reason we are buying gold is that we are very sure that we can sell it to the higher price in future. In very recent article Warren Buffet said that the growing fear of loss and confidence in the market has motivated the practice of buying gold. Since the financial crisis of 2008, the gold prices have continued to climb. The lack of confidence in the global financial markets has let people to want something more concrete that cannot fail has placed gold into that place. As on June 2012 one kg of gold was about 41,525 Euros.

     Since the people hoped that future economic policies and the continued push for the progress will make gold as a profit buy. We don’t know when it will plunge. This is a risky game investing in gold. Globally the central banks of each of the county don’t want their people to invest in gold which openly displays how their people reject their paper money and hence they will act swiftly on day or the other. If the trend continues to be volatile then the governments will announce a very debilitating tax on this yellow metal to break the upward movement. If the gold market tend to monotonically increase then it will be good to the investments in stock markets. If the stock markets continue to fall then it will ensure a good appreciation in near future. Since the stock market is unpredictable when compared with the gold trend which followed a significant increase that lead to a bubble.

 Most of our readers aware that market is drive by the two namely fear and greed. Now we are in the middle of fear cycle. When it ends the cycle of greed starts immediately. If the gold bubble happens the gold price will fall and people will sell in bulk and they will forced to buy securities and therefore the stock’s price will increase. Hence it is ideal to buy gold as a small portion of our assets.