IRL:Gold
Gold, the Value of Metal, and the Modern Trading Landscape: A Money Game
Gold, with its timeless allure and inherent value, has played a significant role in human civilization for centuries. As a precious metal, gold has been a symbol of wealth, power, and prestige. In modern times, gold continues to hold a special place in the trading landscape, and trading itself can sometimes feel like a money game.
The Value of Gold:
Gold's value is derived from a combination of factors. Its scarcity, durability, and intrinsic beauty contribute to its desirability and worth. Throughout history, gold has been used as a medium of exchange, a store of value, and a hedge against economic uncertainty. Its stability and perceived safe-haven status make it an attractive asset for investors during times of market volatility or inflation.
In the modern trading world, gold is traded in various forms, including futures contracts, exchange-traded funds (ETFs), and physical bullion. Trading gold allows investors and traders to participate in price movements and profit from fluctuations in its value.
The Money Game (Forex & Gold Futures):
Trading, whether it involves gold or other financial instruments, can indeed feel like a money game. The financial markets are dynamic and constantly evolving, driven by factors such as economic data, geopolitical events, and investor sentiment. Traders attempt to navigate this ever-changing landscape, seeking opportunities to generate profits.
Trading involves making decisions based on analysis, timing, and risk management. Traders study charts, utilize technical indicators, and analyze fundamental factors to anticipate market movements. They enter and exit positions with the objective of buying low and selling high or vice versa, aiming to profit from price differentials.
However, the money game aspect of trading can be both enticing and challenging. The allure of quick profits, the thrill of making successful trades, and the potential rewards can create an atmosphere that resembles a game. But it is important to remember that trading is not merely a game of chance. It requires knowledge, skill, discipline, and a deep understanding of the market dynamics.
Managing Risk:
While trading can feel like a money game, it is crucial to approach it with caution and proper risk management. Just like any game, there are winners and losers, and the potential for losses is ever-present. Traders must develop robust risk management strategies, including setting stop-loss orders, diversifying their portfolios, and adhering to disciplined trading plans.
Additionally, traders should approach trading with a long-term perspective. Consistency and patience are key attributes of successful traders. It is essential to understand that trading is not about making money overnight, but rather about building sustainable profitability over time.
Conclusion:
Gold, with its enduring value, holds a special place in the trading landscape. Trading, while it may feel like a money game, requires careful analysis, risk management, and discipline. It offers opportunities for profit but also carries inherent risks. By approaching trading with knowledge, skill, and a long-term mindset, traders can navigate the money game and potentially achieve their financial goals. Remember, success in trading is not solely about making money, but also about managing risk and continuously learning and adapting to the ever-changing market conditions.
Spot Gold vs Leveraged Gold
Comparison: Gold Traded on Spot Platform vs. Leveraged Products (Forex)
| Aspect | Spot Platform (MTS Gold Futures) | Leveraged Products (Forex) |
|---|---|---|
| Trading Instrument | Gold | Currency pairs |
| Spot Price vs. Derivative Contracts | Trades based on spot price | Trades based on derivatives |
| Leverage Available | 1x | Significant leverage |
| Risk Exposure | Direct exposure to gold price | Exposure to currency price |
| Risk Management Options | Limited risk management tools | Wide range of risk management tools |
| Shorting Positions | Not available | Short positions available |
| Hedging Capabilities | Limited | Hedging options available |
| Market Liquidity | High liquidity | High liquidity |
| Market Volatility | Moderate volatility | High volatility |
| Trading Hours | Limited trading hours | 24-hour trading |
| Transaction Costs | Generally low | Variable transaction costs |
| Regulatory Oversight | Regulated by relevant authorities | Regulated by relevant authorities |
| Market Participants | Institutions and retail investors | Institutions and retail investors |
Key Points:
- Trading Instrument: MTS Gold Futures focuses solely on trading gold, while leveraged products in forex involve trading currency pairs.
- Spot Price vs. Derivative Contracts: MTS Gold Futures trades are based on the spot price of gold, while forex leveraged products are derived from derivative contracts based on currency pairs.
- Leverage Available: Leveraged forex products offer significant leverage, enabling traders to control larger positions with smaller investments. MTS Gold Futures typically offers limited leverage.
- Risk Exposure: Spot platform trading directly exposes investors to fluctuations in the price of gold, while leveraged forex trading exposes investors to currency price movements.
- Risk Management Options: Leveraged forex products offer a wide range of risk management tools, including stop-loss orders, take-profit orders, and limit orders. Spot platform trading may have limited risk management tools available.
- Shorting Positions: Short selling, or taking a position to profit from a decline in price, is not typically available on spot platforms like MTS Gold Futures. In leveraged forex trading, short positions can be taken.
- Hedging Capabilities: Spot platform trading may have limited options for hedging against positions. Leveraged forex trading provides various hedging strategies to manage risk.
- Market Liquidity: Both MTS Gold Futures and leveraged forex products generally have high liquidity, allowing for ease of buying and selling positions.
- Market Volatility: Forex markets are known for their high volatility due to numerous economic, political, and global factors. MTS Gold Futures may experience moderate volatility in comparison.
- Trading Hours: Spot platforms like MTS Gold Futures may have limited trading hours, while leveraged forex trading operates 24 hours a day, five days a week.
- Transaction Costs: Transaction costs on MTS Gold Futures are generally low. In leveraged forex trading, transaction costs can vary, including spreads, commissions, and swap fees.
- Regulatory Oversight: Both spot platform trading and leveraged forex trading are subject to regulatory oversight by relevant authorities.
- Market Participants: Both MTS Gold Futures and leveraged forex trading attract a mix of institutional and retail investors.
It is important for investors to understand the specific features and risks associated with each trading option and choose the one that aligns with their investment objectives, risk tolerance, and trading preferences.
Reasons for Gold to Breakout
| ⚠️ Disclaimer: | The information provided in this text is for educational and informational purposes only. These writings are my own opinion, provided as-is, and has no warranty expressed or implied. None of it is financial, legal, or other professional advice. The author encourages readers to use discretion and make informed decisions regarding their own practices while seeking professional advice if necessary. |
|---|
here is an English translation of the article about gold price analysis for April 2024:
20 Reasons for Gold Price Breakout
Jim Willie, April 18, 2024
The gold price is breaking out, but not for any single reason. It's a combination of factors.
- Default of US government bonds
- Debt creation is becoming a cost, and there are no more buyers of bonds. In fact, bonds are being bought back.
- Supply chain inflation is still unresolved.
- Many countries are dumping US bonds and converting to gold.
- A large number of depositors are withdrawing their money from banks and buying gold.
- The BRICS countries are creating a currency system that is not tied to the dollar at all, to be used for debt settlement between them. And all of these countries are dumping US bonds.
- There is dissatisfaction with the use of the dollar as a weapon, so many countries are dumping what the US uses as a weapon - the dollar - and buying gold.
- There is a hidden agenda of the Fed that was exposed in the 1990s by former BIS President Jelle Zijlstra. He revealed that in about two decades from then, the Rothschild central banks would face a severe bankruptcy. The only way to survive would be to secretly load up on gold and push the gold price to $10,000 per ounce. The central banks would have to do this to survive bankruptcy.
- The situation of inflationary depression in the US is becoming increasingly clear, but there is deception in the official inflation figures. There is no way out of this situation, so interest rates cannot be lowered or raised.
- The big banks are in a similar situation. They have been sweeping up gold from the GLD gold fund vaults, making it impossible for the banks to short sell the futures market again. In addition, these banks have unrealized losses on bonds of $1 trillion on their books. They can't sell them, and they're becoming a snowball. All the banks on Wall Street are now holding twice as much gold as they used to.
- China and Japan both have currency problems, which they are solving by buying more gold.
- There is a geopolitical shift from the West to the East, meaning that Western bankers in the US, UK, and Switzerland have less control, and power is shifting to China and Russia.
- The Austrian School of Economics has been saying for a long time that when paper money loses its value, it will be time for precious metals, namely gold, to take over.
- The American system is collapsing in all aspects, including finance, markets, and politics. It is becoming a corrupt nation.
- Silver mines in the Andes have been closing down one by one over the past 3-4 years, citing Covid among workers. But the truth is that the miners are unhappy with the suppressed silver price. They are ready to reopen the mines in the next few months when the silver price reaches $50 per ounce, or they will not be able to meet demand.
- The world is now 330% in debt to GDP, and the US alone is over 130%-140%. Normally, if it exceeds 100%, the country will go into depression.
- The advent of digital currencies around the world, including the Digital Ruble, Digital Yuan, and many more to come.
- XRP will become more in demand as the BRICS countries announce the use of blockchain platforms in their financial systems.
- War is the answer, no matter who you ask why the gold price is rising.
- This is a long story, but it has to do with dark money. About 7-8 years ago, I learned about Langley (or CIA) having over twenty standard-sized containers at a major Greek port, Port Piraeus. Each container was packed with $3-7 billion in $100 shrink-wrapped banknotes.
This is money from the drug trade that will be used to buy entire foreign banking systems. I believe that Papa Bush (the elder Bush) has already used dark money to buy the entire country of Colombia for almost $1 trillion. He had already bought the banking system before that.
And he still has $7 trillion left. Where else will he buy it?
Years ago, the president of this country, who was the head of the Medellin Cartel drug cartel, Papa Bush had already bought the entire healthcare system and banking system. It's not hard to buy the rest. This country is a major producer of cocaine. The low-level war between the Medellin and Cali Cartels was over.
Now the dark money is coming for gold. We've heard many people say that Bitcoin will prevent money from going to gold. That's not true. Where do you think the dark money from Mexico is going? To buy oil companies or major ports in the world? The Chinese have already bought them all. There's nothing left but gold.
We are now about to see the longest gold bull market ever. If you sell for profit when the price reaches $2,500, you will regret it when it reaches $3,000.
Fibonacci is working, especially in the price of silver.
Additional Notes:
- The author, Jim Willie, is a financial analyst and gold advocate.
- The article is based on his personal opinions and observations.
- The article was published on April 18, 2024.
- The gold price has been on an upward trend in recent months.
- The article provides some possible reasons for the gold price breakout.
Please note that this is just a translation of the article and does not constitute financial advice. You should always do your own research before making any investment decisions.
