Metals like precious metals have been indicators of personal wealth since times unknown. Even in older times, kings and queens used to showcase their affluence using gold and silver jewellery. And today, when precious metals trading has evolved into a full-fledged online investment activity, their value is still holding the allure that it held during the era of ancient civilisations. The only difference now is – you DON’T have to be royalty to become a Gold and Silver trading investor.
Online precious metal trading has picked up its popularity, mainly because of the stability that this form of investment offers. People choose to put their money in metals like gold and silver to safeguard their wealth from economic disasters, inflation, effects of war and political crisis and even natural disasters. Come what may – your money will always remain safe when invested in bullion.
Now hold on – don’t jump onto this wagon yet! Are you prepared for what precious metals trading might entail? If the answer to the above is NO, here is a list of questions that you must ask yourself before opening an account with a precious metal trading platform and starting to invest your hard-earned funds:
#1: Physical, digital or paper?
The first point to understand will be determining whether you wish to buy actual physical bullion or wish to own precious metals in a digital format. The third and most interesting option is paper bullion like gold certificates and futures contracts that will give you access to high liquidity online trading opportunities for making profits based on market price movements.
#2: How liquid is this investment?
Most investors choose precious metals as a long-term wealth storage vehicle. The idea is that the price of bullion always follows a rising trend when evaluated in the long run. But if you are looking for a more liquid investment vehicle, choose ETFs and Closed Ended Funds which can be bought or sold throughout the trading day. These settlement period for these stocks is also quite short, as compared to buying and selling actual gold or silver.
#3: How is precious metals trading taxed?
One aspect that most traders tend to ignore is taxation. This form of trading can be highly lucrative and will therefore, come within the ambit of different government tax laws. Make sure you consider taxation costs as well before you choose to invest in this mode.
#4: Which precious metals trading company should you choose?
Opening an account with a broker/trading platform is a tough decision to make. The performance and effectiveness of the precious metals trading app you are using can make or break your trade success. Do not miss out on market opportunities by making the wrong choice here. This form of investment requires a robust technological platform that will deliver predictable and reliable performance when you need it to.
#5: Which metals to invest in?
Read through precious metals trading tips and conduct a thorough market research to determine which metals – gold, silver, platinum, palladium or others, are you willing to put your money in. Each option has its own inherent value and market constraints and should therefore, be selected based on actual analysis and investment data rather than emotionally driven choices.
Precious metals trading in UAE
If you are planning to invest in the UAE precious metals trading market, make sure you are well aware of what you are getting into before you end up exposing your capital to these investment avenues. Carefully planned trades lead to the most rewards. Use this article to your advantage and make the right choices!