Use information at your own discretion.
Let me tell you how to make money on gold both when the price goes up and down.
1. Beware of Tricksters, Imbeciles, and Conspiracy Theorists
Those characters seems particularly attracted to precious metals… even managing to shell-out worse advice than the penny-stock folks. Hard facts should be the bedrock of all investments.
2. Match your Investing Strategy with Underlying Trend
Like all investments, the price of gold goes up or down, the former constituting a Bull-market and the latter a Bear-market. The ONLY bankable way to make money in Bull-markets is to own financial instruments that appreciate along with the underlying index, while you should own inverse/bear/short instruments during Bear-markets. Yeah, it is true, many investors made money on gold falling in value.
3. Accept the Benefits of Digital Investments
While gold bars and coins look good, they are illiquid investments, meaning it is not easy to buy or sell them. Further, it is much cheaper to secure your digital investments vis-à-vis physical gold. Any thug can steal your gold coins, while it requires a much higher degree of sophistication to hack a big financial institution. Hence, the focus herein will be on exchange traded products (ETP’s). You should Google the ETP’s mentioned below, since they are leveraged and have peculiar benefits and risks you should be aware of.
4. Use Stop-limit Orders Religiously
Robots now rule the financial markets! While I am not a big fan of extensive algorithmic trading, I do strongly favor the benefits of stop-limit orders. It is a very practical way to get good entry and exit prices.
5. Invest in Pure Gold ETP’s
For Bull-markets: VelocityShares 3x Long Gold ETN (UGLD)
For Bear-markets: VelocityShares 3x Inverse Gold ETN (DGLD)
E.g. if the gold price index goes up 1%, then UGLD goes up 3%, while DGLD goes down 3%.
6. Invest in Gold Miner ETP’s
For Bull-markets: Direxion Daily Gold Miners Bull 3X ETF (NUGT)
For Bear-markets: Direxion Daily Gold Miners Bear 3X ETF (DUST)
E.g. if the miners index is down 1%, then NUGT goes down 3%, while DUST goes up 3%.
So, there you have it, leave your thoughts in comment section below.