Almost everyone who has been following the financial news in recent months has heard of the Gold price’s incredible ascent in wake of the US and EU debt crises. But, for those who have yet to invest in Gold, is it too late to jump on the bandwagon, invest in gold and and profit from the crescendo?
No, it’s not. Many financial analysts believe Gold has not yet reached its peak price in this current round of economic turmoil since the other “safe-haven” assets are still not considered very safe at this point in time.
One way to take advantage of the current Gold craze is to invest in online binary options on gold which pay out up to an 80% return on investment and have expiry times of 30 minutes to 3 weeks following their purchase. In this article, we will discuss how gold binary options can be traded and why they may be present a lucrative opportunity to invest in gold.
Looking around the world, it’s easy to see that the traditional “safe haven” financial assets are currently less stable than many would like. The US economy is far from a recovery with last month’s job numbers showing that the American labor market had not created a single job, and as a result the value of the US dollar remains highly volatile.
The Swiss National Bank (SNB) is desperately trying to weaken the Swiss Franc – another safe haven – which global investors flocked to sending its value down to a record low of 1.03 against the Euro last month. The SNB issued a statement saying it would take the necessary steps to keep the CHF/EUR rate at a minimum of 1.20. The USD/CHF opened at 0.7870 yesterday, following the news, and gained 746 pips in one day to close at 0.8616. Clearly, there may be some rough seas ahead for the CHF.
The price of gold continues to increase with some analysts predicting the price of an ounce of gold will cross the $2000 threshold in the near future.
In a recent interview with Banc de Binary CEO, Oren Laurent, he expounded on his view of the current price of Gold saying:
“Gold’s remarkable rise in price is being caused by fears of the US and Europe’s inability to cope with their debts and until the debt crises in the US and Europe are resolved, there is no reason for Gold to go down.”
As one can see in the graph below, the price of Gold has been trending up since last September, however the rise in value has become increasingly acute since July.
One way to invest in a “medium-term” financial instrument based on gold’s value is to execute a binary option trade on gold. Binary options on gold are available with expiry times of as little as a few minutes from execution to as long as 3 weeks from order execution.
If one is of the opinion that gold will continue its upward trajectory over the next two weeks, it may be possible to profit from investing in a call on a gold binary option with a one week expiry from the time of investment.
Below, we have included a screenshot of the BinaryMETA binary options trading platform available at Banc de Binary (Click here for a full review of the BinaryMETA platform), showing a gold binary option available for investment.
Click to expand image
As you can see, binary options on gold are available for investment with expiry times as soon as 20 minutes to as long as 3 weeks from order execution.
Today, US President Barack Obama is set to deliver a speech to the US Congress in which he will purportedly unveil new plans to energize the sagging US economy. If his proposals fail to convince the markets that the US economy is on the right track, we may see an even steeper rise in the price of gold as investors prepare to wait out another recession.
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Remember, the financial markets are constantly being influenced by myriad factors so there is no guarantee that any strategy will always work in your favor. However, when used appropriately, binary options may help increase a trader’s profit margins.