Currency | Gold | Silver | CFD | Oil
Investment of currency, gold, silver and oil can be one of the best ways to diversify your portfolio. This value of currency, gold, silver and oil doesn’t move in the same directions as compared to other assets such as property or equities. The foreign exchange market which is commonly known as Forex is the world largest marketplace where currency, gold, silver, CFD and oil is traded 24 hours a day. Precious metals like gold and silver are executed just like the foreign currency pairs.
1. Investment of Currency
Forex is one of the best marketplaces where different currencies are traded 24 hours a day. Simply it is the phenomena of changing one currency into another. Here I am going to share with you how to invest in currency.
Standard Trading Account
You can open an account very easily with Forex broker and traded different currencies from all over the world. Here are some differences that how this market is operated when it is compared with the United States stock exchanges
- Currencies are traded in pairs you are betting that one currency will go up and other will down
- NO central clearing house for trades and no regulated currency exchanges
- No upper limit on the size of your position in this market
Foreign Bond Funds
There is some mutual fund that invests in foreign government bonds, and after all these bonds earn interest denominated in the foreign currency. The earned interest increases if there is an increase in value relative to your local currency.
2. Investment in Gold
Gold is the most effective way to diversify your portfolio. As it is relatively rare, so the value of the gold often doesn’t move in the line as compared to other assets. So here I am going to discuss how to invest in gold?
Investing in physical Gold
Because of its universal finite currency, physical gold is worth holding and it is held by most central banks. Once some gold bullion included in your portfolio, then other investments such as investment funds, mining shares, and other speculative gold investments can be considered.
Modern Bullion Coins and Bars
Modern bullion coins and bars allow investors to own investment grade legal coins at a very small to the spot price of gold as quoted on the markets. Buying modern gold bullion for investment is tax-free and stamp duty-free in the EU and UK due to EU gold directive of 2000.
3. Investment in Silver
As silver is the precious metal so it can be used as an investment. For more than thousand years ago it has been regarded as one of the best forms of money and store of value. Like most other precious metals the price of silver can easily be driven by supply and speculation and demand. The price of silver is notoriously volatile as compared to gold. This is because of demand fluctuations and lower market liquidity between industrial and stores of value uses.
4. Investment in Oil
You can approach oil investing in a number of different ways. For example, you can consider the collection of companies as an industry providing services or products to customers, and other players in the oil industry itself. You are also able to access the industry as a commodity, and seek the profit changes in the prices of the oil.
Type of Oil Investment
There are 4 types of invest of oil which are as follows
- Exploration
- Developing
- Income
- Services and Support
5. Investment of CFD
CFD is also called Contract for difference. It is an agreement between two parties to exchange the difference between the opening price and closing price of the contract. CFDs are the best derivatives products that allow you to trade on the internet without actually owning the underlying instrument.