How to Make Money Trading Gold in 2019

Gold is usually used by investors who are worried. The yellow metal shows a clear-cut pattern of fear-based price gains, benefiting from bad news on the stock markets and geopolitical uncertainty. There’s a confidence that your money is safe in gold, but can gold ever become a money-maker?

Since 2018 turned into a wash for stock market investors (in fact, it was the worst year since 2008, with the S&P 500, Nasdaq, and Dow all falling between 4 to 6%), some are looking for other avenues to earn money on their investments. With volatility back on the table for stocks, some are pitting their hopes on gold.

Trading gold

But it’s not enough to buy gold bars and hope for the best. You need to know what you’re doing. In order to flip the script on gold and turn it into money-maker, there are a few things you need to know about gold.

Volatility, interest rates, and inflation are all factors that can push the price of gold up or down a few hundred dollars an ounce. Reading these signs and taking appropriate action on gold can be a great strategy for active investors. But if you want to see the kinds of gains gold saw in the 2000s, gaining 300% and higher in value, you have to look toward the commodities supercycle.

Gold, like oil, copper, zinc, coffee, and wheat, is a commodity: a raw material or agricultural product.

Some economists believe that there is a commodities supercycle – periods of global growth when demand for raw goods is huge and the effect is high prices for everything from wheat to gold bullion. They also believe that the world was in a commodities supercycle until about 2013, when China’s explosive economic growth dropped from the double digits to a more modest 6-7%. That slowed global hunger for commodities and spelled the end of a decade-long bull run that saw gold prices multiply.

When will the next supercycle start? Supercycles tend to last for 8-10 years, preceded by several years of strong economic growth across the globe. As many worry a recession is about to begin, now may be a good time to invest in gold due to fear-based price movements, but instead of cashing out completely as the economy recovers, consider holding onto gold as global growth driven by India, China, and other rapidly developing economies spur global appetite for metals and more.

To begin investing in gold, you need to find a reliable source. You may want to start by looking online. With lower overhead than brick-and-mortar stores, you can may be able to save on premiums over spot from gold sellers like Silver Gold Bull. They may also provide easy storage solutions if you’re uncomfortable with keeping gold at home or investing in large sums. If you’re interested in buying gold coins or bars, see what Silver Gold Bull has to offer and find out how a great online gold dealer can help you with your investments.

You can start making money with gold today. Buy at the right prices and sell when global demand for commodities reaches it peak.