Trading Gold

Discussion in 'Trading' started by angelnish, Jul 11, 2012.

  1. I know a lot of traders trade gold depending on what stage another market, such as Forex, is in. How exactly does trading gold work? When are the times you want to be long or short gold in relation to where the forex market is?

    What is the basic benefit of trading gold?

    Thanks in advance for your input.
  2. Most of the posters here are not really traders. they are just gold bugs. They won't even buy the etf GLD because they want to have the physical buried in their back yard because they believe someday the world will come to an end and somehow people will sell them their last shovel (which is useful) to hold something shiny that entertains them. And they only buy, they never sell, so hence they don't actually trade., They just hoarde, and will ride it up and back down again because they always believe it will be worth more than dollars, in spite of the countless millions they lose on the spread.

    otherwise, all currencies are fiat, and can be increased (devalued) at wil lby the central bank. The only constraint being inflation.

    So some of us look at gold as an alternate currency.

    I don't really trade it, but I sometimes buy it when I get too many dollars.

    Trading involves margin. And that's what I do all night long in currencies at 40 to 1.

    As far as gold goes, I am very comfortable owning it in the etf GLD (in cash) , because my plan is someday to convert it back into dollars, which will then be used to invest or trade in stocks bonds or currencies.

    But generally, Gold moves inverse to the dollar, so DX at 83, gold low, DX at 78 gold high, and that has been the range of the dollar, but there is no range in gold, it can go to a million or down to darn near zero, because it is not real, like the dollar, or for that matter any other currency.