Even when the global market is generally depressed, there are still some opportunities that many investors can explore in order to earn profits. One of the fields that can be the focus of many investors is the market for metals like gold, silver and platinum. The trading of these metals can be in many forms like bullion investment, metal trading as well as spread betting or futures trading and share or equity trading.
Bullion Investing in a Depressed Economy
One of the most effective ways in playing in realm of gold, silver and other metal assets is through bullion trading. According to lots of economics, investment on precious metals has performed really well even when the economy has been really depressed during the financial crises in 2009 and 2009. This is primarily because buying these precious metals give a certain insurance of wealth in the midst of paper currencies depreciation. In other words, bullion investments preserve the wealth of an investor, which makes this safer than any other kind of futures trading.
Alternatively, exploring the possibilities of investing in metal funds is also worth the time of any investors even the dark times of the economy. Recently, there are even some gold funds that are able to remit dividends of the stockholders for the first time after a decade of operation. Hence, it is a signal that investing on this basket can be worthy too. A popular precious metal fund was reported to exceed its 108% benchmark return marking as high as 120% return instead in a matter of five years.
Spread and Futures Betting
Thirdly, while spread and futures trading can be considered as the riskiest option among these four (4), there are some reasons that make this one worth entering. This is because while futures trading post too many high level risks, there are still some ways on how this can be entered in a safer way. One of these is by backing up the portfolio with safety nets like stop losses orders and the like.
Share and Equity Trading
Another alternative aside from bullion investment, metal funds trading and spread or futures trading is the share and equity trading. This option is for those investors who mind the said three modes of investments and trading as daunting, unpredictable and risky. As a matter of fact, as a form of security for many investors out there, several margins of different gold companies have appreciated as high as 219% already in the past three years.