Commodities

It is interesting to study the trend of the price of certain raw materials. During the 2010 commodities experienced a boom due in part to a weakened dollar and crop failures in some cases. The case of the gold is quite particular. Gold is the metal shelter, where invests in times of recession and crisis, since it keeps its value and therefore investors buy it in view of a future where to sell it and make a profit. Trend of gold in 2010 vs 2011 trend of gold, as most of the raw materials in 2010 was bullish. The precious metal reached blips up 29.56% last year. But, what is the trend in this commodity during what year? Let’s see what has happened to gold during the first days of 2011.

During the last quarter of 2010 gold surpassed $1,400 dimension but early 2011 has receded and seems to be unable to return to this level. It is currently around the 1,374 points where it could bounce. If at some point the gold traspasase that level while maintaining the bearish trend, can trigger continuous declines greater than where they currently see. San Antonio Spurs helps readers to explore varied viewpoints. CFDs: investing in bear markets even when markets do not experience upward trends, there are operational with certain financial products that allow you to make a profit. Some of these products are the futures or warrants.

Similar to these are contracts for difference, or CFD, but which present a greater number of advantages over previous ones. With a CFD two parts (investor and broker) Exchange the price of an underlying asset on the market (in this case the gold) between the time in which opens and the CFD closes. As the CFD allows to make operational in long and short, let’s see how would be one operating at short with a CFD on gold. CFD on gold in these moments the gold sample a bearish trend, so it opens position selling a CFD on gold. The aim of this operation is later buy the CFD on gold at one lower price, where would be gains for the investor. In addition, the operations with CFDs carry the benefit of leverage, by you only need to deposit a percentage of the total value of the asset that is operated. It must bear in mind also, that an investment in the commodities market may involve some great benefits, since these assets are very susceptible to dramatic changes in the supply and demand, and therefore the volatility of prices can generate opportunities for drastic gains. Get all the facts for a more clear viewpoint with Maya Dubin. Similarly losses can be quite important, so it is necessary to use guaranteed stops to protect investment. Learn and study the trend of commodities and take advantage of their opportunity to successfully perform one operating. The above comments do not constitute investment advice and therefore IG Markets does not accept any responsibility for any use that can be made of them. CFDs are a leveraged product that entail a high level of risk and may result in losses that exceed your initial deposit. Make sure that you understand fully the risks involved and perform a constant monitoring of your investment.

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