Trading gold and betting markets; not particularly two things that you would really associate with each other. They operate in different markets and the profiles of the people who do each often differ vastly; however despite these differences, there are actually some trends and patterns that run true in both.
The prospect of financial gain
As with any investment or money staked on a certain event or circumstance, the main motivation for both trading gold and betting is often financial gain. With gold there are a huge number of people and businesses who are there to offer you advice when it comes to trading. These companies provide tips and assistance when it comes to trading in return for you using their platform; this is how they make their money.
This is similar in betting where there is a plethora of websites with tipsters who offer their views on the Champions League and other major sporting markets. They do this in order to attract people to certain platforms from which they generate revenue.
The risk factor
Whenever you place a stake on anything with the prospect of getting a larger return it’s a form of gambling. Even if like some you believe there’s no way your investment can fail, there is always a chance that it will; (in betting the chance of failure is reflected in the odds).
In both gold trading and the vetting markets it’s imperative to fully understand how the market works, otherwise you risk wasting money. Another thing that’s key to understand is the functionality of the platforms used to invest/gamble. This is especially true in betting as there are so many different vendors, each with their own platform.
With all types of trading and betting it’s also important to know when it’s time to get out. There have been many cases across multiple markets where people have gone overboard with their ‘investing’ and ended up with a seriously negative outcome.
Solid Gold markets
Due to its rarity and how difficult it is to fake, gold tends to hold its value even when the financial markets crash. As gold is a physical substance is holds value because it doesn’t rely on third party performance in the same way that the value of stocks and shares do. In fact, even some longer term investments such as property don’t hold their value in the same way that gold does.
The solidity of the gold market is evident in the fact that you still hear about companies (mainly central banks) holding gold reserves. The reason that they do this is to protect themselves in the case of a financial meltdown.
Former UK Chancellor Gordon Brown rather infamously sold off a large proportion of the UK’s gold reserves in 1999 for between $256 – $296 per ounce. This proved a disastrous decision as shortly after he did this the price of gold then rose and at one point was worth over $1800.
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