Here are 5 reasons why gold is a guard
Tired of watching inflation chip away at your savings? Looking for stability in uncertain markets? It might be worth considering the lasting appeal of gold. Trading gold online offers a unique combination of potential gains, portfolio protection, and remarkable convenience.
Why gold shines bright for Deriv’s traders
- An inflation hedge:
People’s understanding of money affects how they save. Some keep cash at home, risking theft and losing value to inflation. Others buy gold, which usually increases in value over time, despite occasional drops. This is safer than keeping money in currencies, which can lose value quickly due to inflation. Gold’s history proves its resilience against rising prices. Unlike currencies, its limited supply helps it hold value over time.
- A safe harbour:
Economic and geopolitical instability causes investors to seek safe-haven assets to protect their wealth. Gold is a classic safe haven because it tends to maintain or increase its value when other markets, such as stocks or currencies, decline. For example, during the 2008 financial crisis, gold prices rose significantly as investors sought refuge from market volatility. This surge in investor demand naturally leads to a rise in gold prices.
- Potential rate cut:
The Federal Reserve’s plans to cut interest rates could weaken the US dollar. As the dollar weakens, other currencies gain purchasing power. This makes gold more affordable for international investors, potentially fueling increased global demand and pushing gold prices higher.
- Diversification power:
Adding gold to your investment mix can be a genius move. Despite experiencing short-term price fluctuations, gold consistently demonstrates long-term stability compared to stocks or bonds. This serves as a crucial hedge against market volatility.
- Conveniently accessible
Deriv makes gold trading easy from anywhere in the world. With Deriv MT5, you can trade gold CFDs, and with Deriv Bot, you can engage in gold trading using digital options. These tools provide easy access to the gold market from anywhere, using just a computer or mobile device.
Our platforms are designed to be easily accessible with low latency, requiring less initial investment and tight spreads. You won’t own physical gold; instead, you’ll analyse and act on gold price trends. Whether gold prices go up or down, you can position yourself to benefit. Plus, you can better manage risks and lock in your gains with stop-loss and take-profit orders.
Ready to transform your approach to investment?
With advancements in technology, Deriv offers automated trading. One of our platforms, Deriv Bot, enables seamless 24/7 automation, which is particularly advantageous for online gold trading. Automated trading enhances trade volume and ensures timely execution by analysing vast amounts of data and real-time information. This capability can potentially help traders capture the current market value of gold, thereby reinforcing its role as a safe haven during economic uncertainties.
You can also visit the Deriv blog for insights into trading strategies and terminologies that will empower your gold trading journey. Our support team is available 24/7, ensuring you have the assistance you need, anytime, anywhere. Step into the world of gold trading with Deriv and unlock your potential for success.
Disclaimer:
Trading is risky. Past performance is not indicative of future results. It is recommended to do your own research prior to making any trading decisions.
The information contained in this blog article is for educational purposes only and is not intended as financial or investment advice.
This information is considered accurate and correct at the date of publication. Changes in circumstances after the time of publication may impact the accuracy of the information.
No representation or warranty is given as to the accuracy or completeness of this information. We recommend you do your own research before making any trading decisions.