How to Buy Gold Bullion

Do you like daily action and FOREX day trading or do you like the sit and forget investing strategy buying gold bullion provides?

FOREX day trading certainly has its appeal for a large segment of the population. People have made money through FOREX day trading, but people have also lost money.

FOREX Day Trading

So, just what is FOREX day trading?

First, FOREX stands for FORegin EXchange. It involves the relative values of various fiat currencies. As events occur in the world that impact a country, its currency can gain or lose value compared with other currencies. News such as interest rate changes, increases in crime, changes in oil prices, unemployment statistics, economic summit meetings, potential severe weather, and other news may affect the relative values of the currencies of several nations.

FOREX Day Trading

The following major currencies are used for most FOREX day trading:

USD – U.S. dollar
EUR – European EURO
JPY – Japanese Yen
GBP – British pound sterling
AUD – Australian dollar
CHF – Swiss franc
CAD – Canadian dollar

Currencies are traded in pairs. You are trading or using one currency to buy another currency. For example, the pair EUR/USD indicates you are buying or selling Euros with US dollars. The base currency is the Euro and the “counter currency” is the US dollar.

A quote such as EUR/USD 1.4213/1.4215 indicates that you can sell 10,000 Euros for 1.4213 dollars each and you can buy 10,000 Euros for 1.4215 dollars each. This difference in price is called the “spread.”

You would buy Euros, in this case, if you thought that the Euro was strengthening against the US dollar. You would sell Euros if you thought the Euro was weakening against the US dollar.

Let’s say you bought 10,000 Euros with the above quote (EUR/USD 1.4213/1.4215) costing $14,215. A later quote was EUR/USD 1.4294/1.4296 and you sold your 10,000 Euros for $14,294. You have made $79. But, if you guess wrong you could just as easily lose money. You can see that FOREX day trading can be exciting.

FOREX day trading requires an active interest in current FOREX markets, worldwide news and current events because any news item may affect the relative values of the currencies.

Automated software can be used for FOREX day trading. Software programs look at trends and provide “buy” and “sell” signals. Some software can automatically initiate purchases and sales.

Investing in Gold Bullion

Active and intense FOREX day trading involves fluctuations in values of fiat currencies. Investing in gold bullion, however, gets you out of fiat currencies and into an investment backed by the universal standard of value: gold.

If you believe that the long term fiscal strategy of many countries will result in the loss of value of their currencies, then gold is an excellent long term strategy.

Yes, gold values will fluctuate daily. Up a few dollars or down a few dollars. A major event in world news can cause a temporary spike in the value of gold, like the start of  the crisis in Greece. To a gold investor, these daily changes are no big deal. Nothing to lose sleep over.

Investing in gold is a long term strategy. As fiat currencies continue to weaken, gold will continue to increase in value compared to those currencies. Once you recognize that all fiat currencies eventually fail, your course for gold investing is set.

FOREX Day Trading or Investing in Gold Bullion Personality

So, do you have a FOREX day trading type of personality or do you have a gold bullion investment personality?

If you are an energetic “Type A” personality who always wants action and adventure, FOREX day trading may be your ticket to excitement. However, if you like to site back and be confident of your overall strategy, investing in gold bullion is your ticket to peace of mind and tranquility.

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