When it comes to investing in precious metals, gold is undoubtedly the star of the show. It has a unique array of physical qualities that make it appealing to almost any person; plus, its constantly high value has lead specialists to consider it a trustworthy hedge against inflation ad other types of financial crisis.
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Many countries claim to have the richest gold mines in the world but in 2007 it was China that overtook South Africa to become the world’s top gold producer. Now China leads the world in gold mining output, having upped its production in 2007 by 12% with many of the largest mines contained in the eastern provinces of Shandong, Henan, Fujian and Liaoning. Recently, western provinces such as Guizhou and Yunnan have seen a sharp increase in their gold output.
Gold’s place in human history is a prominent one. Industrial, medical and decorative are just some of the purposes it has been used for. Once major countries realised that the production of the yellow metal could not keep up with the exponential growth of their economies, they gave up the gold standards, and its ability to be converted with their currencies. Investment is now a popular use for gold.
The worldwide economic downturn has brought home something the Europeans were not so much aware of: that the idea of a Community of 27 Member States with common values and shared destiny tends to remain but a beautiful ambition, rather than a plain reality and that the common currency area is by far not as strong as it should be for ensuring a really stable financial market.
Not long ago, speculation was considered an activity that was not worthy of any respect. Things have changed and nowadays, speculation is just for adventurous people who are not afraid to take risks. It is said that you have to venture a small fish to get a big one. The same may be said about the investment in gold. This is an activity which may be risky on the one hand, but it may bring you a lot of money on the other. Are there any tips to be taken into consideration if you want to get involved in speculation?
The most popular precious metal of our times, gold, is also one of the most profitable investments of the past decade. From the beginning of 2009 it has made it in the front line for investors but has not yet reached a bubble stage yet.
Every day we witness new price increases. It’s useless to try to remember them, because they change every year, every month. What you purchased last year cannot be purchased this year with the same amount of money. Everything gets more and more expensive. Our revenue might have slightly increased also, but the purchasing power is less. We have parents and grandparents which remember exactly what a certain item cost them when they were young. We hear them relate how they could make financial plans and follow them, because they lived in times of monetary stability.
Gold is considered the most useful precious metal because of a set of special characteristics. It is the most malleable and ductile of all metals, easily alloys with many other metals. Moreover, it is a good conductor of heat and electricity and is resistant to most corrosive reagents.
So, you are in the market for a third party signal provider. The maximum draw down of the trader is your first step in the selection process. To define the maximum draw down – this is the gap between the ultimate amount of loss between the absolute top and the absolute bottom. Included in this number is also the open positions, but not included is the account margin necessary to keep you away from a margin call. How much is too much of a draw down you may well ask. Of course, like many answers to many questions, it is – That depends. Many, many issues need to be examined when coming up with an answer to this very important question. It goes without saying that a person with an account in the high thousands of dollars can stand more of a draw down than a person with a much smaller account. So, that being said, what are some other things to consider?