Last update 2121.02.15
Nowadays, it is common to see advertisements on the internet or receive emails advising you to invest in gold. They predict economic instability and use past performance charts to try to prove that gold, silver, or some other precious metal is the best investment that can help you double or triple your capital 📈.
However, the truth is gold and other precious metals are highly volatile and past performance is not a good predictor of future returns. If sales pitches also include many disastrous or high-pressure sales tactics, they may be preparing you for fraud. In this article, we would like to share with you important tips about investing in gold and why it might be not safe.
What you can learn ahead
- Understanding the Gold trading market
- How metals are traded
- Signs of scammers in trading
- Alternative to gold trading
- How to invest with AI from home
Our mission is to help you understand how to invest efficiently and improve your outcomes. Get extra trading insights from leading finance experts on the trading Academy and on our free forex Telegram channel.
Gold is a risky investment and might cause a loss of capital. Before you start trading gold you should consider whether it is suitable for you.
Our articles are written by real finance experts with hands-on investment experience to make financial education available to everyone.
Understanding the Gold trading market 📊📈
Banks 🏦 and other big investors do buy gold, other precious metals, and commodities like oil, to hedge against inflation and other economic risks.
Some investment advisers may even recommend that individual investors put small percentages of their diversified portfolios in precious metals too. But that doesn’t mean that gold or silver or other metals are safe places to park your wealth.
Like other commodities 🛢, precious metal prices rise as demand goes up, so when economic anxiety or instability is high, the people who typically profit from precious metals are the sellers.
Premiums, fees, and commissions can also drain the profit from your purchase. If you are financing your purchase, and not physically receiving the metal, check to see if the seller or firm is registered with the regulators. If they’re not registered, they are likely breaking the law and you should denounce them as soon as possible.
Firms selling and delivering precious metals to retail customers within 28 days also do not have to be registered with securities regulators.
For example, from a recent case, the U.S regulator CFTC ordered an individual and his firm, Southern Trust Metals, Inc., to pay more than $2.5 million in restitution because they claimed to purchase physical precious metals that were allegedly held in depositories in London or Hong Kong. It was reported that customers were told they could purchase additional metals with loans offered by the company. In reality, no metals were purchased or sold and the defendants didn’t provide any loans. Instead, they transferred customer funds to engage in margined derivatives trading. These practices are illegal but are not uncommon.
How metals are traded 🧐
There are several ways you can buy and sell precious metals, including gold and silver. You can buy bullion or coins from a bank or other broker, and pay the spot price plus a markup or “premium.” Before that, you should compare premiums from multiple sellers to make sure you are getting the best price in the operation. For you to make a profit, the spot price would need to increase enough to cover the premium plus any other costs associated with selling the metal.
Are you considering to invest in commodities? Click here to learn more in this article.
Hedgers and speculators also buy precious metals on the futures markets. Hedgers use the markets to lock in future delivery prices. Speculators try to make money on trades and add liquidity to the market.
You buy futures contracts using margin, which means you can control a large contract position with a relatively small amount of cash.
Here’s why: For every $100 the price drops, you would lose $100. That money comes out of your margin account and must be replaced. The spot price would only have to fall about 4 percent to wipe out your initial $5,400 investment. So it is a double-edged sword.
Precious metals prices are predominantly determined by supply and demand, but can also be impacted by other external influences. These can include inflation expectations, the strength of the dollar to other currencies, geopolitical events, and related commodity market activity such as the price of other precious metals or other commodity prices. Also, there are often substantial fees associated with opening and maintaining an account. These do not include commissions, which could reach upwards of 15 percent on the leveraged amount.
Signs of scammers in trading 🛡
- Be very suspicious of unsolicited calls and demands to act now. No reputable firm or broker would need to deploy high-pressure tactics. In fact, if you receive a cold-call, just hang up.
- Be wary of offers made on television, radio, or on the Internet, especially if they use a name that sounds like an official government agency.
- Be suspicious of claims of big returns for very little risks, or that offer guarantees or agreements that limit your losses.
- Watch out for offers that require you to only pay a small percentage of the total purchase price, or that allow you to pay with a loan financed by the company.
- Beware of claims that the metal you purchase will be stored for you in a bank or other facility.
Forex, an alternative to gold trading
An essential point to figure out when planning to become a trader is to decide where to invest. Investors around the world are finding it difficult to diversify their portfolios in this unstable global environment. There are several financial instruments to consider, such as Stocks, Forex, Bonds, Treasury bills, Savings account, real estate, and so on.
Forex is the short way of saying “Foreign Exchange“. This means the global market for trading international currencies, also known as the FX market through a forex broker. These are the key features of forex:
- Forex sessions are 24/5 from Sunday at 5:00 pm Eastern (ET) through Friday 5:00 pm.
- With an average daily volume of $6 trillion, forex is the largest and most liquid financial market in the world.
- Due to the large volume, forex offers great opportunities to invest.
- Due to a wide variety of existing Forex brokers, Forex has become increasingly affordable.
- You can start trading forex from just $100 or with a risk-free practice account with a lot of forex brokers.
- It’s possible to invest automatically in forex with AI trading.
- Portfolio diversification. Forex is used as a hedging instrument by large hedge funds. This means that you can also consider forex trading as a protection for your investment portfolio.
So, are you thinking about investing? Think of forex as part of your capital allocation. With Wiseinvest’s AI trading, you can invest automatically in forex from just $100.
Learn more about the forex market dynamics and how to make money from home in forex in this article.
Investing in forex with AI trading
Why you should consider investing in forex with Wiseinvest’s AI trading
- Portfolio diversification in forex.
- 3 times the average returns of S&P500*.
- You can try our AI for free and with practice accounts.
- It is efficient and totally hands-free.
- Invest from anywhere in the world, from just $100.
- Very simple and quick setup.
- It is safe and affordable.
- Integrated with the best brokers.
- There are no management and performance fees.
- There is a team of specialists to support you.
- Learn finance with real leading experts.
The average annual return of Wiseinvest’s automated AI trading over the past 10 years (2011 – 2020) was +43%. You can check our real-time track record by clicking here.
How to invest with AI from home
You can invest with AI in forex while performing your personal activities at home or wherever you are and save time. It is simple, safe, and free.
Check out the 3 steps to trade automated with Wiseinvest’s automated AI trading system.
By trading forex automated with AI, you will save time and improve your performance without monitoring the market and managing trading platforms.
With Automated AI trading you do not need MT4 / MT5 and other trading platforms to invest in forex. All forex trades are automatically placed into your broker account every time that our AI system identifies a new worthy trading opportunity. You can monitor the AI trading performance in real-time directly on our dashboard.
Benefits of Automated AI trading
- Invest in forex from just $100.
- It is automatic, time-saving, and safe.
- An annualized average return of +42%* over the past 10 years.
- Setup in 3 minutes.
- Totally hands-free, from anywhere.
- Integrated with the forex best brokers.
- Your capital is protected by the brokers.
- Test with a risk-free practice account.
- Up to 60 trades per month.
- Automatic trades on average every 12 hours.
- You have full control of your broker account.
- Fast execution of trades.
- No commissions, no management fees.
- Automatic risk-management with low trading exposure of your capital (0.10% up to 0.65% per trade).
- No MT4/MT5 or other platforms required.
- Portfolio with 40 different automatic strategies.
- Trading results directly on our dashboard.
- Optional free forex signals.
- Trading alerts by email and Telegram.
- We have a team of professionals to support you.
What does happen after linking a broker account with AI trading?
- The AI will automatically invest on average every 12 hours in your account.
- There will be up to 60 trades per month (Monday – Friday).
- You can enable and disable AI whenever you want.
- Check your trades on our dashboard or the brokerage.
- You can link more than one broker at the same time.
- You don’t need MT4 / MT5. It’s all on our dashboard.
- Your capital is protected under the broker.
- Your personal data is protected by us.
Would you like to try our automated AI trading for free in a risk-free demo account? Get started free here.
How much do I need to trade forex with AI?
You can start in forex trading with free AI forex signals or AI trading from just $100 through some of the best forex brokers. It is moreover possible to test using a risk-free demo account with our AI trading structure. Regardless, to do a capable peril, the board in authentic records, we suggest you start from at least $100.
What is the best forex broker to use AI trading?
- Where are you from? FXCM accepts accounts from some countries, but does not accept forex trading accounts from the USA.
- How much do you have? FXCM is ideal if you start at least $100.
- FXCM sometimes provides higher liquidity volume and lower spreads than other brokers, which are vital aspects of the success in forex trading. But it can also vary.
Why trust Wiseinvest instead of other trading platforms
These are the main reasons why forex traders at all levels trust us, rather than other trading solutions.
- Our automated AI trading is efficient, simple, safe, and affordable. You do not need MT4 or other complicated platforms to trade forex.
- We are a legitimate and reliable company with extensive experience in finance. We combine 19 years of trading experience and extensive academic research in the financial markets.
- Our AI outperformed the investment market with an average annual return of 43% over the past 10 years (2011-2020).
- The automated AI trading works with some of the best forex brokers.
- When using our AI solutions, all your money is protected by brokerage firms.
- We do not have access to withdrawals from our customers’ accounts.
- All of your data is encrypted and will never be shared.
- Despite the popularity of gold as a trading instrument, you should know that investing in gold is risky and can cause considerable capital losses.
- Before investing in gold, you should check if the broker has registered the offer and sale of the product with the local regulators.
- Today, AI is overtaking industries and our day-to-day tasks. Fortunately, the implementation of AI has been beneficial, as in the use of investing from home or while working to make money.
- Artificial Intelligence has gained traction among traders and it is now the new generation of systems to trade forex.
- Due to its ability to evaluate scenarios, learn quickly, adapt and make the right decisions or give accurate suggestions for decision making, AI can be a very powerful predictive tool in forex trading, if implemented correctly.
- Wiseinvest provides helpful AI trading solutions to invest in forex. You can trade automated through the best forex brokers with AI trading or manually with AI forex signals in the forex broker of your choice.
- You can get started with free AI forex signals and use a risk-free practice account.
Disclaimer: Forex and Contracts for Difference (CFDs) are complex instruments and come with a high risk of losing money due to leverage. Forex trading is not suitable for everyone. You should consider whether you understand how forex and CFDs work and whether you can afford to take the high risk of losing your money.
The forex brokerages displayed shall disclaim the overall performance of traders in their platforms. Oanda warns that 76.8% of retail forex traders lose money trading CFDs. XTB warns that 80% of retail forex traders lose money trading CFDs. FXCM warns that 74.74% of retail forex traders lose money trading CFDs.
The performances aforementioned are not related to Wiseinvest AI forex trading and AI forex signals system. You can check the performance of our AI forex system on our dashboard.
Wiseinvest does not recommend binary options trading and any of the binary brokers described in this article.