Due to revival of US economy and surging interest rates, Gold is not considered as a good form of investment as the money spent in purchasing bullions will not yield any returns. Instead investors look out to invest in stocks with higher dividends, treasury bills or alternate mode of investment like binary options. Gold can be considered as a way to diversify your investment portfolio but it does not yield any earnings or dividend like traditional bonds and stocks. Investing in spot gold or purchasing bullions can only yield returns when people are ready to buy it back at higher cost. But with declining gold value, people are not ready to purchase gold and whoever has invested in it heavily by purchasing Gold at higher price is only suffering now in today’s market conditions. You can gain from a declining gold value by trading binary options which is one of the safest methods of investment which guarantees very high returns on investment.
China was one of the reasons of hope for investing in Gold which is also a huge consumer of Gold and aims in making Yuan as reserve currency by boosting its Gold stocks. But this has not happened as per expectations of the market experts. Also Gold is declining because of the positive political news including the involvement of Eurozone to bail out Greece from bankruptcy.
Rather than investing in spot Gold or bullion by speculating that it will increase in price, you can invest in binary options by speculating on the price fluctuations in Gold. This can yield you as high as 80% returns on your investment. Binary options are new methods of investment which has grown in popularity recently. As the name indicates, binary options can result in any of the two outcomes. Either the investor will succeed in his speculation and gain good return on investment or his speculation will be wrong due to which he will lose his investment on that particular trade and will not get any profit. The advantage of binary or digital options is that it requires less investment and market knowledge, and the risk is capped to minimum. You will lose only the amount you had invested on the particular trade involving binary options. The important terms involved in binary options include:
1. Expiry time – The time and date after which your trade will expire. If your option is not in money during expiry time, it will result in loss for you.
2. Strike price – The strike price is the anticipated value of asset before expiry time. You should speculate the asset price based on market trends and if the underlying asset reaches the strike price by expiry time, you will succeed in the trade and gain excellent margins
3. Put option – Used when you expect the price of asset to decline
4. Call option – Used when you expect the price of asset to increase
You can make money by speculating on Gold price with a very small investment in binary options rather than spending huge amount for investing in Gold bullion or spot gold. There has been warning that Gold is not exhibiting the usual parabolic pattern of hockey-stick which will result in ugly bubble. One of the important advantages of investing in Gold is that it has very high liquidity and can be converted to cash easily in any place. Gold has been used as a hedge against inflation and whenever there is decline in dollar value, Gold price will increase. But currently the surging interest rates in U.S and stronger dollar value has resulted in decline of the yellow metal which is making investors to turn to other forms of investment like binary options and stocks. Binary options is recently considered the best method of investment because of minimal risk involved and higher returns on investment it can assure by following the right trading strategies.