Home
Mike Swanson's picture

Why Invest in Gold? - Mike Swanson (09/07/09)

Submitted by Mike Swanson on Mon, 2009-09-07 10:10.

There are precious metal markets that also sell gold as a commodity, and of course, people invest in gold to try to make profits in gold stock picks and bullion dealers. Some people enjoy investing for short-term goal profits, and others enjoy holding onto it for a longer period of time to make a bigger profit.

Gold is very similar to other types of commodities, it rises and falls, people who trade on the short term will buy gold at the low end and sell it when it climbs making short term profits.

They may hold onto the gold for just a few moments or they may hold onto it for a day, a week or a month. This is all considered short term gold trading. And while profits are made, it's a small amount at any one time.

Long term gold traders are looking for larger profits per trade and may hold onto their gold for 6 months or a year before selling.

Those who trade gold are looking for a profit by either buying or even selling at the perfect time. And just like other commodities, you can invest in gold with a broker that trades in precious metals.

You can now look to different types of Internet trading platforms in order to trade gold. This means you do not have to go to a broker's office, and don't have to make quick phone calls in order to make your trades. In this way, the gold market has opened up to everyone, and it's very possible that everyone can make profits. It is important that you to remember that anytime you're trading on commodities that not only do you have an opportunity to make profits, but you can also lose your money.

Also important, your trading platform and your trading contract needs to be understood thoroughly. You'll want to watch how gold rises and falls in this way, you can trade and make your profits when the prices right.

If you have a retirement account you want to keep the money in there as long as possible so you want be stuck calculating 401k early withdrawal penalties.

That would be a mess. Gold can play a key role though in a retirement account or IRA. If you have a broker you need to start to talk to him about this, especially when we are headed for potentially inflationary times.

»


Sign Up Below to My Free Weekly Newsletter

Hello. My name is Mike Swanson. I’m the best-selling author of the book Strategic Stock Trading. In a former life I used to run a hedge fund from 2003 to 2006 that generated a return of over 78% during that time frame. In fact it was ranked in the top 35 out of 5,000 hedge funds in 2005.

After I retired from the hedge fund world I setup this website and blog. If you sign up for my free weekly email list below I’ll send you an update on average about once a week on my views of the current stock market trends and share with you actionable investment ideas.

Now I cannot promise you that every stock I find will go up in value. I can’t promise you endless 100% returns as others claim they do and as all the disclaimers say past performance does not necessarily predict future performance and you can lose all of your money in the stock market.

This is reality.

What I can promise you is my dedication to doing the best I can for you.

You see the key to making money over the long-run in the stock market is to manage your risk. Once you sign up to my newsletter I’ll send you a series of educational videos and writings showing you how I use stop-loss orders to cut any potential losses and how I use my two fold formula system that combines fundamental and technical analysis to pick stocks. My goal is to risk one dollar to try to make at least three dollars in my trades by looking for stocks that are priced cheaply on a valuation basis, have high earnings growth, and have excellent chart patterns.

So join my list below and let me help guide you on your journey in the stock market.