Investment Options in 2013: Is Gold Right for you?

September 3, 2013 - by buygold.co.uk · Filed Under Gold News Leave a Comment

If you are a trader or investor, you will have never had access to such a wide and diverse range of financial products. From currencies and stocks to carbon emissions, the existing financial market offers unique opportunities in terms of leverage, liquidity and risk management. Whether you are a cautious trader or someone who enjoys taking risks as a way of maximising potential profits, the financial market is accessible to everyone who has disposable income and appreciation of fiscal gains.

Is Gold a Good Investment for you this Year?

Precious metals represent one of the most traditional investment options, with gold historically considered to be a reliable asset that delivers sustainable returns. Whether or not it is a suitable investment for you depends on various factors, however, as these must be given careful consideration before you make a financial commitment. For example: -

Does Gold Suit your Investment Philosophy: While the price of gold has risen steadily over the course of recent decades and recently hit an all time high, it is not necessarily a viable investment vehicle for you. As a starting point, you should carefully consider your own investment philosophy, and more specifically the level of risk aversion that you adopt when executing orders. If you are someone who prefers high levels of leverage and larger returns, for example, you may be better served by entering the forex market. If you are a cautious trader with an eye for long term gains, however, then gold may be the investment for you.
The Performance of Silver: Silver has forever played the role of poor relation to gold, as while both are categorised as precious metals the former is typically associated with industry. This has changed during the last 18 months, however, after gold bullion prices temporarily dipped and silver began to earn repute as a precious and high value metal. The price of silver has therefore more than doubled within this time, meaning that it has provided an alternative investment option for precious metal traders. While the inflated price of silver may now mean that this window of opportunity has closed, it is still worthy of consideration for investors.
The Wider Economic Climate: In previous generations, gold was considered to be a source of security during times of economic austerity. This made it the ideal investment vehicle for cautious traders, as it represented a physical asset that afforded wealth and financial security. The value of gold therefore continued to rise during the Great Recession, while it has subsequently experienced a dip as the global economy has began to recover. This economic expansion remains tentative, however, meaning that you may be wise to retain gold options for the foreseeable future. To find out more about the current economic portents, visit the Newsroom at www.alpari.co.uk.

The Last Word

The investment vehicles that you use as a trader are deeply personal, and your portfolio must be based on your philosophy and outlook as an individual. You must also factor in the wider economic climate, however, as this will also influence the returns that you generate.

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