Technology has brought impactful changes to various sectors, including the gold market. The present era has paved the way for innovations and advanced technology to be applied not just in the process of exploring, mining, and producing, but even in how people use gold today. Now more than ever, there are more ways than one that technology is changing the gold market.
By definition, the gold market is the buying and selling of the major precious metal gold. Gold is considered to be a sound investment because its value doesn’t change during inflation bouts. Buying gold is a good investment when the inflation rate is accelerating, while it’s best to sell gold if disinflation is most likely to occur.
How does technology affect the gold market? Just like any other market in the world, the gold market is constantly changing and it can be attributed to several significant factors including technology.
Gold In A Changing Trading Environment
Gold is said to be a very luxurious investment. The traditional gold investment costs relatively high especially if your only perception of investing in gold is through hefty gold bars. Thanks to the advent of technology today, the presence of a digital marketplace makes it possible for anyone to invest in gold using a variety of platforms and options.
Aside from gold bars and gold coins, you can now invest in gold through the following methods:
- Gold Exchange-Traded Funds (ETF)
Gold-based ETFs or exchange-traded funds are commodity funds that can be traded like stocks without having to own any physical or actual gold. If you plan on investing in gold ETFs, you can check out gold IRA as an opportunity to diversify your investment portfolio. IRAs or Individual Retirement Accounts are a good option to consider if you’re looking for a sound retirement investment.
Since gold IRAs aren’t the same as other retirement accounts that are provided by employers or private companies, you can freely start and manage one on your own. Just remember to not hold it together with your regular retirement account. You need to open a separate investment account for your gold IRA and other gold ETFs.
- Gold CFDs
Gold CFDs or Contracts for Difference will let you trade on gold prices without actually owning any mining shares or other financial instruments such as options, futures, or electronic fund transfers or ETFs. To start a CFD account, you’ll need to get in contact with a broker. You’ll also need to set up a deposit fund which will serve as a margin in case the value of the CFD changes.
You won’t be trading physically so there’ll be no storage costs involved. However, it’s still a high-risk financial instrument and if you’re not experienced enough, you could lose your capital in a blink of an eye. For your best interests, you can look for a broker that can give you a demo account so you can get a feel of how it is, while also allowing you to develop your knowledge in gold CFDs.
Gold As A Precious Metal In The Jewelry Industry
Aside from the various ways that technology has changed the price of gold in the investment market, there have also been progressive changes in the jewelry industry. With the increasing demand for gold jewelry products worldwide, it’s safe to say that it’s indeed the perfect time to invest more in gold jewelry.
The said increase can be attributed to how technology is believed to help shape up the way consumers shop different products, including gold jewelry. With e-commerce gaining more and more momentum, buying things has been made easier, faster, and more advanced than ever. Even with a pandemic happening, the supply and demand for gold jewelry remain strong and are predicted to stay stronger in the years ahead.
Gold And Its Diverse Industrial Applications
In case you haven’t noticed, almost every piece of consumer electronic device you own contains trace amounts of gold. Being it a corrosion-resistant and highly conductive material, gold is highly in demand in most modern technological trends and innovations such as mobile phones, electric vehicles, and even solar panels.
There’s also the rising popularity of wearable techs that use gold as one of their major components. With the help of cutting-edge technology, consumers can now avail themselves of electronic accessories that can easily be connected to their handheld devices. This helps in allowing them to multitask anytime and anywhere.
Gold is undoubtedly one of the most useful metals in the world. With the help of technology, its uses can be even more diversified and utilized by many consumers. It’s exciting to imagine what else awaits the gold market in the future. These modern times are definitely changing and shaping the way people look at the mentality of gold investment.
Technology is making gold more accessible and easier to invest in. With just a simple click of a button, you can trade, buy, sell, and own gold in different forms. The demand for gold is most likely to stay on track so you better plan and start setting up your gold investment soon.