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==== ==== Automated Money From Gold, Silver and Oil. Get Special Report Here: http://bit.ly/LSJp8Q ==== ====

For the last couple of years, smart investors and traders who understand where the market trend is moving will come into spot gold trading. In 2010, the spot gold price has gone past the historical barrier of $1200 per troy ounce. Although there was a correction after the price hit the $1,200 mark, the uptrend of the gold market is expected to continue for at the least ten years or so. Lots of individuals and speculators have literally lost quite a lot of money when the stock market crashed during the financial crisis. Forex trading then seems to entice many investors mainly because they were told that the foreign exchange market is a ideal place to create money fast and effortlessly. The moment those investors and traders tried FX trading, 90% of them in fact lost money and then they come into conclusion that making money from trading is very challenging. So the concern is, is earning money from trading that difficult? Well...it can be very difficult for people who don't even understand any of the basic fundamentals and technical analysis. But this is not the case for the savvy and smart investors. They are the ones who know which market will rise during a financial meltdown, so online gold trading is the so called 'holy grail' market that they made a ton of money from. How do you actually trade gold spot over the internet? Here's the thing, many people are not aware that spot gold trading is actually available on some of forex broker's Metatrader 4 (MT4) trading platform. A few forex brokers like Alpari, FXDD etc allow spot precious metals to be traded against the U.S dollar on the MT4 platform. In gold spot trading, the symbol is XAUUSD and XAU simply represent one ounce of gold. For example, the quote is 1200 XAUUSD in the spot market, so this means that 1 troy ounce of gold is equivalent to $1,200 USD. Why are precious metals like gold on a long term uptrend? Precious metals are industrial metals, which mean that the industrial sectors have a high demand for it. After the economy has recovered from financial meltdown, recession, unemployment etc, industrial's increase their production and therefore the prices of gold and silver rise along with the demand. The next biggest event is that the government debts have been soaring to trillions and thus this has forced the U.S dollar to decline. Since the debts are in trillions, what they did was to print trillions of U.S dollars to pay off their debts. When this happens, inflation occurs and the value of


the dollar dropped. The smart investors will then rush to buy gold to hedge against inflation, which then push up the gold price. This is always happening throughout the history. What's the major edge of online gold trading? Just like forex trading, leverage is also offered to spot gold trading. In forex, one standard lot of contract is $100,000. While for spot gold, one standard lot is worth 100 troy ounces of gold. For example, you plan to buy 1 standard lot of gold. One troy ounce is $1,200, so 100 troy ounces will cost you $120,000. However, with a 200:1 leverage, you'll only need $600 as a margin in your trading account to buy 1 standard lot of gold. Let's say the gold price now goes up to $1204, 1 standard lot of gold contract could earn you $400 ($120,400 - $120,000). Can you imagine buying 100 troy ounces of physical gold? You have got to fork out around $120,000 and it's not even inclusive of storage fees! Now you have a chance to be smarter than those savvy investors...invest in online gold trading instead of buying physical gold which will cost you a ton.

The author is a professional and successful commodity trader who teaches real people how to master online gold trading for their long term financial success. To find out more about how to make consistent passive income from gold trading, download your free ebook now at [http://www.goldsilverexpert.com]

Article Source: http://EzineArticles.com/?expert=Solomon_Ernesto_Y_Houston

==== ==== Automated Money From Gold, Silver and Oil. Get Special Report Here: http://bit.ly/LSJp8Q ==== ====


How to Trade Gold