How To Trade Gold & Silver
Not very many people think about trading gold or trading silver. When most people think about investing in gold or silver, most people would think about buying bullion and storing it away for safe keeping. It would be a safe haven for their money or a way to diversify their holdings. When it comes to trading gold or silver most people automatically think of the futures markets and how risky they are. There are however different formats to trading gold and silver just like ones you would use to trade stocks online. On this page we will look at a couple of different methods used to trade gold and silver including one that I use personally.
In 2007 a company by the name of Bullion Vault came online and set up vaults to allow people to trade gold. At that time they gave you a free gram of gold once you funded your account. Of course being a gold bug myself I was quite eager to jump on board. Not sure though how legit the company was at the time as it was still quite new I only transferred $250.00. Once my funds were there I got an email stating that my account had been funded and I was set to start trading. I did a few trades by selling into strength and buying back in the dips and after a few years the accoutndid of course build up somewhat. Nothing big or anything that you would want to brag about but it did grow. Then when gold went flat during the later part of 2010 and early 2011 I never really traded the account at all.
That all changed though when I got a notice that they were now getting into the silver trading and were giving you a free ounce of silver to help out in funding your account. I quickly sold out my gold position and bought into the silver. It was one of the best moves I ever made. Of course you see silver was just right poised to pop at around $20 an ounce. Before long it was trading into the $30 range and heading upward into the $40 range. With violent swings I sold out on strength and bought back on the dips. At the time of this writing silver is just trading at $48 an ounce, give or take a dollar. In the past few short months I have seen my funds up more than 300% because of the ability to buy and sell and buy back in. If I had just bought into the silver account and had done nothing with the account I would still be up 150% or so. These are great returns in about 60-75 days.
The above segment of this page was written back in 2011. Since that time of course silver has come back down to test old lows of the $16 range and stagnated and traded sideways for the better part of 2015. However at the time of this writing, (Oct.2012) silver has once again rallied and rallied hard. Our trading portfolio has increased over 30% in the last 3 months alone. It would be very difficult to accomplished these sort of returns by investing or trading any stocks or other equities.
Silver can rally hard from here for the remainder of the year 2016 and trading silver could be very profitable proposition. Buying physical silver can also be extremely rewarding at today's prices.
Be sure to visit our page on trading mining stocks to find out how we make some great returns trading mining stocks.