As someone who prides himself on making smart financial decisions and investments, the commodities market has made for an interesting read this year. In search of new income streams, I happened to stumble across trading and spread betting, courtesy of a review site I found – reviews.spreadbetting – and having been attentive to the market changes over the past few months, decided to try a fun account to see just how right my instincts were.
There are two major commodities this year that have peaked my interest in terms of a money-making opportunities. The first is Oil which has seen a torrid decline from over $100 per barrel in 2014 to a sub-$27 level in February, finally start to claw back some of its’ losses to the $43 mark currently. While Petroleum is the most traded commodity on the market, it wasn’t this one that caught my eye the most, it was the price of Gold.
At the start of this year the price of Gold was sitting around the $1060 mark having fallen over $100 since the start of November. But since the start of 2016, the price of the commodity has increased by a remarkable $200 to over $1260 meaning nearly a 19% increase in the price in just under 4 months. This may tie in with the decision by the FED to postpone further rate rises or just that with Oil being such an undependable alternative at the second and currencies being harder to predict thanks to shock events like Brexit, that Gold is a stable longer-term investment that acts as a safe haven for those looking for low yield options. Certainly in the short-term, this week has seen the price of Gold jump yet again as people have retreated from the cancelled Oil strike in Kuwait and the waning Dollar which is almost directly tied to the price of the commodity.
Is it too late to get involved I can hear some of you asking already? Well the reality is no – there is plenty of volatility to come and as long as you are patient enough to learn the basics of trading and spread betting, then opportunity is rife. Setting correct stop losses in place means that you can never lose more than you can afford to, and if you stick to your original script and place small bets, then you should optimistically be walking away with a profit rather than a negative bill. Just remember to try it out first for free and negotiate everything including a great bonus before you invest your own money on the markets.