Home Investment Academy How Ordinary Investors Do Gold Investment?

How Ordinary Investors Do Gold Investment?

2022-02-15 18:05:31

Historical experience tells us that gold is a high-value investment tool with independent resources. When the world economy is in a downturn, gold investment can be regarded as an effective means in the investment market. Its global nature determines that it will not be implicated by any country or market. It is an effective way for investors to avoid uncertainty in the economic environment, so how do ordinary investors invest in gold?

First, as a safe-haven asset, gold is not a major investment tool. In fact, the safe-haven assets represented by gold are worth investing, mainly not with the funds that the family lives on, but with part of the assets. Properly allocating some gold investment to protect and balance risks can make your overall assets healthier. Since gold is usually the exact opposite of global economic trends, when the form is booming, no one wants to avoid risk, so gold asset allocation accounts for 5% of total assets.

Second, gold investing is not buying gold jewelry. Because in addition to the price of gold, gold jewelry also includes processing costs and profits from sales channels, etc., and the prices recovered by gold stores are discounted by several layers on the basis of the original price. Although the cost of bank investment today is not as high as jewelry, there is also the problem of maintaining and realizing male demons. For daily asset allocation, for easy-to-buy and hard-to-sell physical gold, you must choose carefully. Of course, if you want to use it for the first collection, it is another matter.

Finally, gold investment can flexibly choose the following products:

1. Paper gold: In fact, this is a kind of gold investment transaction, which earns the price difference through the price change of gold, which is linked to the price of gold, but does not involve a bank product of physical gold transaction, but its transaction The cost is not low.

2. Gold ETF funds: Similar to other fund operation modes, gold-linked fund products are also operated by professionals with low starting threshold and low transaction costs, which are more common investors.

3. Gold CFD: Contracts for Difference (CFD) is a contract signed by investors and trading platforms. Investors do not actually own the contracted target asset, but only predict the future price of the target asset.

Special features of CFD:


Easy to use. When investors trade cryptocurrencies with CFDs, they will not involve the actual ownership of the gold, so they can avoid complicated transaction procedures.


Two-way profit opportunities. CFDs allow investors to trade the future price of cryptocurrencies from both long and short directions. The rise or fall of the future price will not affect your profit from the difference between the price and the current price.


The threshold is low and the return is high. CFDs implement a margin trading system, using the principle of leverage, you can use a small amount of funds to conduct large transactions, and at the same time obtain higher returns under the magnification of leverage.


The number of trading lots is small. The size of a standard Bitcoin CFD is 1 lot, but you can start trading with a minimum of 0.01 lot.


One trading account invests in multiple products. After investors open a CFD account on the trading platform, in addition to gold, you can also invest in nearly a hundred popular investment products such as foreign exchange, commodities, and cryptocurrencies.


Break through time and space constraints. CFDs are open to traders 7*24 hours, and investors can complete all trading operations at any time through the Internet without leaving their homes.

In addition to the advantages of CFDs I mentioned, any investment method has its own risks, and CFDs are no exception. The first is that CFDs implement a leverage mechanism. Under the effect of leverage, profits or losses will multiply. Therefore, I suggest that investors must assess the losses they can bear before establishing a position. Secondly, in addition to the price difference, overnight fees will be incurred for holding positions overnight. This fee changes in real time. Although the fees are not high, traders also need to take them into account when calculating the cost. Finally, some CFD trading platforms charge high handling fees. Therefore, it is best for investors to choose a platform with formal supervision and transparent fees.

As a well-known broker, with an experienced financial team, JRFX is committed to providing customers with the highest quality service, technical support and trading experience. JRFX is subject to the supervision of the authoritative financial institution BVIFSC and the Dubai Multi-Commodity Exchange Center (DMCC). Since our establishment in 2010, a total of 3.8 million account registrations have chosen JRFX. Your choice is the choice of most people, and we will Efficient response to give back to every customer is one of our values, because we only want you to be one step ahead of others. If you want to trade Bitcoin in the form of CFDs, JRFX is a very recommended trading platform for you.

Unique advantages of JRFX:


Easy to operate

The operation interface of the JRFX platform is simple and generous. JRFX provides multiple platforms for computers, mobile phones, and iPads, and supports multiple device systems such as Windows, MAC, iOS, Andriod. They are consistent from content to function, making it convenient for you to trade anytime, anywhere.


Rich trading products

In JRFX, you can not only trade cryptocurrencies, but also trade nearly a hundred popular financial products such as foreign exchange, commodities, and indices at the same time.


Low transaction costs

In order to reduce the transaction cost of investors, JRFX provides different account types to choose from, and there is always one that suits you best.


Simple transaction steps

JRFX only needs four steps from opening an account to placing an order, and the subsequent order transactions and deposits and withdrawals are also guaranteed to be extremely fast, which truly brings users a better trading experience.


Higher leverage

JRFX provides customers with a higher leverage ratio within a reasonable range for different financial products. This means that when you buy the same product with the same principal, you can get several times or even higher investment income in JRFX.


Free trading tools

JRFX provides customers with a variety of practical and free trading tools is another highlight of it. You can use various trading tools to fully and accurately grasp market trends and make predictions.


Transaction risk management

For risk control, JRFX also pursues the ultimate. In addition to real-time risk monitoring of your account, it also provides functions such as setting stop profit/stop loss, trailing stop loss, etc., to ensure the safety of your transactions in all aspects.

The JRFX account opening process is also very convenient, all can be completed on the Internet.

Risk WarningThe above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

JRFX is an online CFD broker providing more than 50 products for Forexmetals and commodities. Open a trading account within a minute. Deposit 100USD and download our MT4 trading platform now! We have unprecedented promotion program!


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