Analysts from many a Gold Trading Company have noted that the 200-day moving average of gold, at below $1,620, greatly supported gold prices. Gold prices have dwindled sharply, by over 4% this week, thus, proving suitable for those looking to invest in gold. However, prior to investment, there are certain points that need to be kept in mind regarding gold trading company, in order to ensure a fruitful purchase.
5 Qualities of a Respectable Gold Trading Company
Some gold trading companies are out to make quick profits, closing down when gold prices dip. However, there are a few dedicated ones which focus on customer service and are concerned about their market reputation. These are the ones that need to be chosen for business purpose. The following are some of the qualities that a gold trading company will possess:
- Member of the BBB
A reputable company will have an A+ score from the Better Business Bureau. This score testifies of the company’s reputation amongst its clientele. It is best to avoid a company that is not a member of the BBB.
- Field experience
Gold prices started its bullish trend only by the end of 2001. Therefore, several trading firms mushroomed quite recently. While some of them have a good “track record”, others can hardly boast of any experience. Doing business with a company that has been around for about a decade is recommended as they will have experience through the good and bad times. It is best to avoid companies that have been established one or two years ago.
- Focus on customer education
A client centric gold trading company will attempt to educate its customers about the current market scenario. The attempt at coaching clients can be through any means – website or telephone. Most customer focused companies will have a highly informative website, facilitating at least basic information about gold and gold ownership. They will also have representatives dedicated to answering customer queries regarding the same. Firms whose representatives seem impatient about spending time with clients should be omitted.
- Keeping abreast with market trends
It is best to conduct business with firms that keep abreast with the trends and latest developmentsin the industry. Learning about trends after they have occurred might prove shocking and monetarily disadvantageous. A dedicated gold trading company will be proactive in keeping clients informed about the latest market developments, via representatives, emails or newsletters.
The main source of market knowledge is usually a company representative, who is not only accessible on a daily basis but also takes the initiative to keep in touch, thus offering updates voluntarily. However, most companies believe in keeping in touch themselves via mails and newsletters, to ensure that customers have a good experience. It is best to steer clear of companies that do not offer the latter services and do not maintain a dynamic website.
- Up-front company disclosure
Reputable companies will be forthright in disclosing the percentage being made on the coins being sold.
In addition to these, checking the client testimonials and media coverage can prove helpful. Checking on online forums and ensuring that the firm has not received any complaints can also prove worthwhile.
Due to the US debt situation and Middle East instability, investors have been increasing their gold holdings. In fact, the dollar, euro and yen, are all facing debt crisis currently. The price of gold is high now, as it usually is in times of uncertainty. There is also a high probability that this trend continues in the next year. This may be a good time to call ITM TRading, Inc, a gold trading company.