Gold trading is an attractive type of investment for many people, especially in uncertain market conditions. Although there are risks in trading gold, the potential profits are also quite large.
 
Therefore, for beginners who want to start trading gold, it is important to understand the basic concepts of this investment and how to trade gold effectively.
 
In this article, we will discuss the basic guide to gold trading for beginners, including the types of gold investments, how to trade gold, gold trading platforms, and tips for beginners. By understanding the basics of gold trading, it is hoped that readers can start trading gold with more confidence and minimize the risk of loss.


What is Gold?

 
Gold is a precious metal that has been used as a jewelry and currency material for centuries. Gold has several special characteristics that make it one of the most valuable commodities in the world.
 
Some of these characteristics include its unique nature of not being easily oxidized or rusty, as well as its ability to conduct electricity and heat.
 
The history of the use of gold as a currency can be traced back thousands of years. In the past, gold was used as a medium of exchange in the barter trading system. However, in the 20th century, many countries began to abandon the gold standard as the basis for the value of their currencies.

Nevertheless, gold remains one of the assets sought after by investors, either as a hedge or as an investment instrument.
 
In gold trading, the price of gold will be affected by various factors, including global market conditions, inflation, and monetary policy. Therefore, it is important for gold traders to monitor the latest news regarding these factors in order to make informed trading decisions.
 

Types of Gold Investments

 
Gold is one of the attractive investment instruments for investors. In gold trading, there are several types of gold investments to choose from, depending on the preferences and investment goals of each individual. The following are some popular types of gold investments:
 

Physical gold

Physical gold is the most common gold investment. Physical gold investment includes the purchase of gold in the form of coins or bars. Physical gold investments allow investors to physically own gold assets and can store them in a safe place such as a safe deposit box or bank.
 
The advantage of physical gold investment is that investors can own the actual gold assets and can determine for themselves how the gold is stored.
 
However, physical gold investment also has its drawbacks, namely higher storage and production costs of physical gold compared to other gold investments. In addition, physical gold investments also have the risk of theft or loss.
 

Gold precious metals

Gold is a gold investment that allows investors to buy shares of companies engaged in gold mining or companies that produce equipment for gold mining. The advantage of investing in precious metal gold is that investors can benefit from the increase in the price of gold and the profits of the company.
 
However, investing in precious metal gold also has the risk of company shares, namely stock price fluctuations that can vary greatly and the influence of global economic factors on the company's stock price.
 

Gold exchange-traded funds (ETFs)

Gold ETFs are securities that trade the price of gold on the stock exchange. Investing in gold through gold ETFs is a relatively easy and flexible way of investing. Investors can buy or sell gold ETFs just as they buy or sell stocks.
 
The advantage of investing in gold through gold ETFs is that investors do not need to own physical gold directly and do not need to incur storage fees. In addition, gold ETFs also allow investors to take advantage of gold price movements.
 

Gold futures

Investing in gold through futures contracts allows traders to buy or sell gold at a predetermined time in the future at a predetermined price. The advantage of investing in gold through futures contracts is that investors can take advantage of gold price movements without the need to physically own the gold.
 
However, investing in gold through futures contracts also has risks, namely the risk of gold price fluctuations and market risks. In addition, investing in gold through futures contracts also requires sufficient trading knowledge and skills.
 

Gold Investment Profits

Gold investment has several advantages to consider, including:
 

Stable Gold Value

 
Gold is known as a precious metal whose value tends to be stable and even increases over time. This is different from other investments whose value is very volatile and prone to losses.
 

Protection from Inflation

 
When inflation occurs, the value of the currency tends to decrease and the price of goods and services tends to increase. However, the value of gold remains stable or even increases during inflation, so it can be a protection for investors.
 

Can Be Used as a Protective Asset


If investors want to invest for the long term, they can maintain gold in their portfolio as a stable asset and can provide profits over a longer period of time.
 

Gold Investment Risks

 
Although it has quite promising profits, gold investment also has several risks that need to be considered, including:
 

Price Risk

 
Gold prices can experience sharp and sudden fluctuations, depending on market conditions and government policies. This can have an impact on the value of gold investments owned by investors.
 

Storage Risks

 
Gold should be stored safely and carefully so that it is not lost or stolen. This can be an obstacle for investors who do not have a safe storage place.
 

Quality Risk

 
Investors should ensure that the gold they buy is real and high-quality gold. This can affect the value of the gold investment you have.
 

How to Trade Gold

 
After knowing the types of gold investments, the next step is to learn how to trade gold. There are several ways to trade gold, namely:
 

Through the physical market

 
Trading gold through the physical market means buying and selling gold physically, such as buying gold jewelry, gold coins, or even gold bars. However, this method is impractical to trade in large quantities due to high storage and transportation costs.
 

Through the futures market

 
Trading gold through the futures market allows traders to buy or sell gold at a specific price in the future. Gold futures contracts can be obtained on futures exchanges such as the Indonesia Commodity and Derivatives Exchange (BKDI). However, this method has high risks and requires sufficient knowledge and experience to avoid large losses.
 

Through the derivatives market

 
Trading gold through the derivatives market allows traders to profit from gold price movements without having to physically buy gold or futures contracts. There are several types of derivative instruments that can be used to trade gold, such as options and contracts for difference (CfD).
 
Each way of trading gold has its own advantages and disadvantages, so it is necessary to consider it carefully before deciding which method you want to use. It is also important to have sufficient knowledge of the market and the risks of gold trading before starting trading.
 

Gold Trading Platform

 
After learning how to trade gold, the next important thing is to know the gold trading platform. This platform is the place where you will trade and buy gold. Here are some popular gold trading platforms:
 

Gold Brokers

 
Some gold brokers such as Monex Investindo Futures and Phillip Futures offer gold investing online. They also provide a gold trading platform with easy-to-use features. These gold brokers usually charge transaction fees and margin when you buy or sell gold. Before choosing a gold broker, be sure to check the broker's reputation, transaction fees, and available customer service.
 

Gold Marketplace

 
In addition to the gold trading platforms above, there are also gold marketplaces such as Logam Mulia and Antam Pegadaian that offer online buying and selling of gold. You can also buy physical gold through this marketplace. Be sure to check the marketplace's reputation and the transaction fees charged before making a transaction.
 

Futures Exchange

 
The Jakarta Futures Exchange (BBJ) and the Indonesia Commodity and Derivatives Exchange (ICDX) are futures exchanges that allow trading gold futures. Trading gold futures requires greater capital and a deeper knowledge of the commodity market. Before you start trading gold futures, be sure to study the risks and potential profits involved.
 

Trade Gold at Global Investa Capital

 
Global Investa Capital (GIC) is a company engaged in gold investment. As an experienced company in the field of gold investment, GIC offers an online gold trading platform that is safe, easy, and convenient to use. With this platform, you can buy and sell gold online at competitive prices and fast transactions.
 
GIC also offers a variety of gold investment options that can be tailored to your investment needs and goals. In addition, GIC also provides up-to-date information on gold market developments and fundamental analysis to help you make informed investment decisions.
 
As a company registered and supervised by the Jakarta Futures Exchange, GIC provides security and trust guarantees to investors. With its experience, GIC can be a trusted gold investment partner for you.
 

Tips for Beginner Gold Trading

 
Do market research and analysis: Before you start trading gold, make sure to do some market research and analysis first. Learn what factors affect the price of gold, such as politics, economics, and global conditions. That way, you can make smarter trading decisions.
 
Set profit and risk targets: It is important to have profit and risk goals in gold trading. Create a clear trading plan and make sure to set a limit on losses that you can accept. That way, you will be able to avoid rushing trading decisions.
 
Choose a trusted trading platform: There are many gold trading platforms available, but be sure to choose a trusted and safe platform. Find out about the platform's reputation, the safety of funds, and the features it offers before deciding to join.
 
Learn different trading strategies: There are a wide variety of trading strategies that you can use, such as scalping, day trading, or swing trading. Learn the strategy that best suits your trading style and practice it with a demo account before starting trading with real money.
 
Manage risk wisely: Managing risk wisely is key in gold trading. Always remember to place a stop-loss order and don't let emotions influence your trading decisions.
 
Learn more about gold: Learn more about gold investing, including the types of investments and the factors that affect the price of gold. By increasing your knowledge, you will be able to make smarter trading decisions and optimize profits.
 

Conclusion 

 
In gold investment, keep in mind that gold is an investment instrument whose value can go up and down. However, with the right understanding of gold investment and the right use of trading platforms, the chances of making a profit are considerable.
 
Some things to keep in mind when trading gold include knowing market trends, having a clear trading strategy, and choosing a reliable and easy-to-use trading platform. In that case, GIC Trade can be a great choice for beginners.
 
Investing in gold does have risks that need to be taken into account, but if done wisely and with the right understanding, investing in gold can provide significant returns in the long run. As an investor, you need to always monitor market developments and update your trading strategies according to market changes.
 
Thus the review of gold trading and the GIC Trade gold trading platform. Hopefully this information can help you start investing in gold and achieve maximum profits. Thanks for reading.


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reference : 
 
"Investing in Gold." The Balance, www.thebalance.com/investing-in-gold-4073265 (accessed on February 20, 2023)
"Gold Trading Strategies." Investopedia, Nov. 19, 2021, www.investopedia.com/articles/trading/09/trading-gold.asp. (accessed on February 20, 2023)
"Gold Trading Tips." FXCM, www.fxcm.com/insights/gold-trading-tips/. (accessed on February 20, 2023)