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How Do Interest Rates Affect the Price of Gold?

As Gold doesn’t have an inherent interest rate, traders holding the commodity incur opportunity costs when interest rates rise, a factor which favours other asset classes. Opportunity costs describe the loss of alternative investment vehicles once Gold has been chosen. It is important, therefore, to keep a close eye on interest rates and related financial variables to know if Gold is a sound investment.   In simple terms, when interest rates are falling, investors tend to seek out Gold, which boosts  demand for the yellow metal and pushes its price upwards. On the other hand, when interest rates are increasing, savings, short-term debts, bonds, and other fixed income investments become more attractive, because they are now more profitable. As a result, investors are discouraged from holding Gold, which depresses demand and forces its price downwards.   Of course, this negative correlation between interest rates and gold isn’t always linear, as sometimes interest rates go up, while the Gold price remains flat, or even rises, often due to higher industrial demand, or because a natural disaster has occurred.   The positive correlation between US interest rates and the US dollar is also important to consider when trading Gold. When interest rates ...

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What Are Your Best Silver And Gold Options Right Now?

If you’re not paying attention to the price of silver and gold, it’s time to tune in. Market volatility, rising inflation, and a weak U.S. dollar are combining to create the perfect storm for precious metal commodities. What the gold and silver markets are seeing may be the beginning of another bull run, the likes of which have seen silver prices triple and gold reach record heights. All signs point toward risks on the market and good news for precious metals. The window of opportunity to strike gold with precious metal investments can feel long when prices stagnate for years, but when gold and silver prices start to move, you can quickly find yourself looking in from the outside. If you’re not already holding gold or silver bullion, it’s time to get moving. But first you need to know what you’re buying. Gold Bullion Options Gold bullion means fine gold products with a high standard of purity (at least .995 for bars and .900 for coins). Coins and bars are the most common forms of gold bullion, though there are also wafers (which can be easily split up for transactional purposes) and gold bullion jewelry. There are many private and ...

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How to Create a Business Trading in OTC Markets

Becoming a day trader can be fraught with anxiety. When you learn how to trade penny stocks in OTC markets and take on the lifestyle of being a high frequency trader, you can pitch yourself into a situation where you are not sure where your financial security is coming from on a day to day basis. It can be very stressful. Unless you manager your overhead, your spending and your activity in a very efficient manner. That comes from learning about the right way to run a business. Because once you become a trader or an investor, you automatically become a business. You will need to control your spending, keep track of your income, figure out your taxes and make a profit. All that comes from experience. And reading business books with timeless advice about how to conduct yourself in a capitalist system. OTC markets could be the most capitalist of any financial market. It is always buyer beware when it comes to operating in over the counter markets. So, you need to approach trading in these markets with a significant amount of respect for the risk. Novice traders have no place in OTC markets. The level of experience needed ...

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What Made the Litecoin Price Rise?

The past few months haven’t been easy for Litecoin, which, like many cryptocurrencies, has been losing value since mid-December, when it was worth more than USD 350. However, despite strong negative pressure, the popular altcoin’s market cap has once again reached the USD 12 billion threshold. After a very steep fall recorded on February 20th, when Litecoin shed about USD 78, falling from USD 262.60 to USD 184.68 in only 3 days, the digital currency, frequently described as the silver to Bitcoin’s gold, is heading back up and is currently trading at around USD 205,45.   Improved Market Sentiment and FOMO   The recent rise in Litecoin’s price is said to be due to improved market sentiment about cryptocurrencies in general, with many investors viewing the weaker market as an opportunity to get involved. The FOMO – or Fear of Missing Out – factor is likely at play here, since many new and prospective crypto traders are known to regret not buying into the top digital currencies some time ago, especially considering the impressive gains seen last year. These traders have been monitoring the digital currency markets, waiting for any signs of an incipient rally. As soon as a slight ...

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Why do so many new Forex traders fail? Here’s how you can succeed!

In the internet age, all you need in order to start trading forex is a smartphone and your bank card. Download an app, set up your account and you are good to go. But take a look in the popular press, and you will see that the question is not whether you can trade on the money markets but whether you should. According so some reports, as many as 96 percent of new traders take on the money markets and fail dismally.

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