In many Asian countries, Gold Traders buy for gifting purposes during weddings and festive occasions. This is particularly true for India, which alone accounts for 20% of global demand for gold. As the price of gold is currently very high, there has been a decline in its demand. Till now, gold traders have been piling up this yellow metal, taking advantage of the price trough in November and December 2010. These traders are looking forward to making profits, as they are anticipating an improvement in demand during the year.

Another factor that is making gold traders more hopeful of a rise in gold demand is the upcoming winter harvesting season in India. Thus, rural households are expected to be left with more disposable income in their hands, which in turn will boost gold demand significantly. With this, the price of gold in the global market will receive a fillip.

Gold Traders: Facts about Gold Trading

Gold traders buy gold in large quantities and hold until its price goes up considerably. Trading of gold futures is generally undertaken by experienced investors and those who are able to do enough research in this field.

Gold prices are subject to wide fluctuations. Therefore, it is very important for gold traders (when trading the digital marktet) to understand when it is the best time to trade. Carefully planned strategies are needed in this business to make attractive profits.

Most individuals deal in bars and coins. Gold bars and coins are considered precious for their intrinsic gold content and purity of the metal. Their value increases with any rise in gold prices. Gold coins have the added advantage of easy storage. Some gold coins are worth much more than their gold content due to the value associated with rarity and historical significance.

Gold Traders: Reason for Investing in Gold

Many believe that gold is a good form of saftey and growth potential. Although the price of gold is volatile, there is the possibility of good returns in the long-term. Over the past few years, gold prices have increased at an impressive rate. At the turn of the twentieth century, the price of gold was $300 an ounce. It has now risen above $1,300. This hike represents an annual return of 18%.

Another reason that many people state in favour of gold is that the value of a country’s currency may decline due to several reasons, but the value of gold is stable in this respect.

“Some may reason that as terrorist attacks and global instability continue, gold is a safe haven. Others are more concerned that the federal government is running record deficits with the national debt recently passing $14 trillion. The Fed continues to print money with no signs of abating, even as our economy begins to heat up. You can debase our currency, but you can’t devalue gold,” says Dave Gardner, a certified financial planner with a practice in Boulder, in his article for Daily Camera.

The business of gold trading is more prone to scams than any other financial business. However, if one adheres to certain guidelines and takes adequate precautions, one can prevent any serious risk. Therefore, understanding all aspects of the trade is as critical for an individual as for gold traders.