As a currency that dates back to 600 BC, Gold has elevated itself as the most sought-after asset in the history of trading. In the olden days, trading gold requires buying and selling the gold metal itself in the form of minted gold coins, gold bars or gold jewelries. However, thanks to the introduction of futures, options and Gold exchange-traded funds (ETFs), investors and traders now engage in gold trading similar to buying and selling stocks.
If you're considering of investing on this precious metal right now then you better click on the button below to get started. This will take you to eToro's gold trading page. Should you wish to continue, simply open an account with them but don't worry, this will only take a few minutes to do.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
The origin of the gold as an element or metal material, is thought to have come from the collision of neutron stars and a supernova nucleosynthesis.
Understanding the origin of gold in the universe would require a whole semester of learning it. However, we are only here to know about the history of Gold as a currency.
Therefore, we go back to the late Paleolithic period circa 40,000 BC when the first traces of gold have been unearthed inside some caves in Spain.
When it comes to monetary use, Gold was minted as coins in Lydia, Asia Minor around 600 BC. The 'talent'—a unit of weight used in Mesopotamia in ancient times—of a gold back then (coinciding during the lifetime of Homer) weighs between 8.42 to 8.75 grams.
Gold bills became gold certificates used for trading and as a gold standard money in the 19h century. This powered the global industrial industry. Gold mining spread throughout the world in the 19th century thus spawning several "gold rush" sites. The most famous of which was the 1848 California Gold Rush, which gave birth to the American West.
Following World War II, gold trading adapted a system of convertible currencies adhering to the Bretton Woods System, which set a fixed price of the gold at $35 per ounce. This "gold standard" ended in 1971 and was then replaced by the introduction of the first gold futures contract in 1974 at the floor of the COMEX exchange in New York.
Since then, the price of Gold keeps on soaring quintupling by value in 2001 and reaching an all-time high of $2,089.20 per ounce in August 2020.
Before starting to trade gold, it is important to take note of how Gold gives investors with these different options:
To start trading or investing on Gold, you need to have a basic understanding of the main factors that affects the price of gold.
Many investors are trading via Contracts for Difference (CFD) and by using this method to trade gold, investors can speculate on the value of gold without needing to own a physical gold.
There are several ways of engaging in CFD trading of gold. All you need to do is find a reliable broker or CFD trading platform such as eToro to open an account and deposit your fund.
Trading gold in eToro's CFD trading platform doesn't require any storage fees since you won't be trading any physical gold.
Many seasoned investors believe that the rules of forex trading also apply to gold trading. This includes being cautious about committing over-leverage and the importance of assessing risk management, setting targets and knowing when to stop. These are some important tips to remember when trading gold:
Yes. Because even though gold is considered a volatile asset in the short term, it has historically maintained its high value for a long time. Throughout the past decades and even century, gold trading has provided a hedge against massive inflation and the erosion of the world's major currencies, therefore making it as a solid asset to invest on.
As of this writing, GOLD has a 52-week average of $1,673.30 - $2,089.20
The value of 1 oz of gold at the time you opened this page is
If you're planning on investing or trading gold CFDs, then it would be simpler to click the button below. This will take you to eToro's trading page for this precious metal.
But before trading gold on eToro, just simply open an account with them. Don't worry, the whole process will only take a few minutes.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.