Fullerton Markets’ Market Strategist Senior, Franky Nangoy, explained some differences between trading and investing in gold.
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What is the difference between investing and trading gold?
Why is Gold Valuable?
-Gold is an expensive and valuable item, besides that the shape is also beautiful
-Gold demand is high, but the supply is limited
-The commodity is thousands of years old, aka has existed since time immemorial even before the existence of money
-Gold Can Be Used as a medium of exchange
INVESTMENT IN GOLD
Gold investment can be through the marketplace, for example through Tokopedia in installments.
If you invest in gold, buy at a time and then wait a long time (eg 10 years) until the price rises drastically. This means that it takes a long time to produce.
TRADING GOLD
Advantages of trading gold: can be done at any time. That is when the price goes up or down. Both can make a profit.
Gold Trading Leverage
- 1:100
Margin = Entry Price x 100 / 100
Margin =Entry Price
1% Ownership
- 1:200
Margin = Entry Price x 100 / 200
Margin = 0.5 xEntry Price
0.5% Ownership
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