Binary options: Gold
Gold is an attractive metal that's unaffected by air, moisture, heat, and most solvents, coveted for centuries due to its unique blend of rarity, beauty, and chemical characteristics. The yellow metal is known for its widespread use in jewellery, coins, art, dental applications and electronics, and has been traditionally used throughout the world as a vehicle for monetary exchange. The price is quoted in US dollars per troy ounce, equivalent to 31.1g.
Gold is a great way to hedge a portfolio against inflation and a falling dollar, but it is a tricky investment. It's not necessarily a hedge against down or volatile markets. While U.S. and world markets soared in the past decade, before the financial crisis, gold prices rallied at the same time.
Gold serves as a safe-haven investment, holding intrinsic value in uncertain economic times and isn't tied to the fortunes of any country or currency. And these uncertain times are enticing investor appetites. If uncertainty continues, so could the exodus into gold. Gold prices have more than quadrupled since 2001 when it traded for less than $300 per ounce, but this could be just the beginning.
Unfortunately for Americans and anyone who owns U.S. dollars, the decline in the dollar is likely to continue. The enormous debt and entitlement obligations of the United States coupled with the slowing economy suggest the government will maintain its weak dollar strategy. Until the economy stabilizes and the government seriously addresses its financial obligations, expect the dollar to continue to decline. A weaker dollar means higher gold prices.
In the short term, the price of gold can be volatile and unpredictable. But, given the extraordinary degree of uncertainty in today's economy and the possibility of inflation in the future, it's a prudent hedge to have some exposure to gold.
Gold contract (gold binary options) is a great way to not only hedge a portfolio, but also gain exposure to a possible massive run in gold in the years ahead.
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