One of the Most Underrated Gold Investments in 2024

[Alston Liu]

Gold Price Trends Recently
On June 19, 2024, gold prices regained losses in the prior session to trade near $2,328/oz. As market participants waited anxiously for a slew of economic reports and comments from the Fed in the days ahead. Despite the little pullback, gold rose 12.52% since the beginning of 2024.

Geopolitical tensions, inflationary pressures, and cautious market expectations about the way ahead for monetary policy continue to factor into this round of gold price increases, reflecting ever-strengthening gold appeal.

What makes gold so popular?

Gold is undeniably one of the most popular investments—the ability of gold to hold value has long been recognized. Gold's rarity, combined with its difficulty in extraction, makes it a determinant of its historic role as a reliable store of wealth. Over the past few years, gold prices have continued rising as investors seek safe havens to diversify their portfolios and mitigate risk.

Learn How to Trade Gold.

Major forms for gold investment
When it comes to investing in gold, investors have a variety of options to choose from:

• Physical gold: This would fall under traditional holdings, which include gold coins, bars, jewelry, and collectibles. Investors feel secure about their investment by having physical gold, although proper storage and safe-keeping measures are required.

• Gold Securities: Through financial instruments, one can take part in the gold market by having gold mining stocks, mutual funds, and gold-backed exchange-traded funds (ETFs). Such options bring ease of accessibility and liquidity to investors without the need for holding the physical metal.

• Gold Derivatives Trading Instruments: Sophisticated investors might be engaged in futures contracts, options, and gold CFDs. With these instruments, investors can speculate on price movements in gold or hedge against them without actual physical holding and generally with a lower capital requirement upfront.

The Underappreciated Advantages of Gold CFDs
While physical bullion and ETFs are still popular for the gold investor, gold CFDs have long been an underrated but vital alternative. Compared to other options, gold CFDs provide greater flexibility and accessibility.

Where to trade gold CFD?

Gold, much like most trading instruments, is very volatile. Not all investors are looking to benefit from the upward movement in gold prices. In this way, gold CFDs provide a clear advantage over other products. The ability of profiting from both rising and falling gold prices enables a trader to take advantage of market fluctuations.

Also, the entry barrier for gold CFDs is substantially more accessible than any other form of gold investment. Commission fees taken for trading gold are extremely small. Brokers, like JRFX, offer a minimal deposit of $1. Flexibility in 24/5 trading can contribute to the investor being responsive to world events and the ability to monitor one's trading at any time. The leverage, however, gives investors more extensive exposure to and participation in the gold market without laying out entire capital upfront, amplifying potential returns more efficiently.

Note that this article is informational and does not constitute financial advice. Trading CFDs involves risk, so before trading, ensure you are proceeding with caution and careful consideration regarding your financial state.