Gold has long been seen as a sign of wealth. In previous years, European countries and the United States had currencies that were backed by gold. This means that they had to keep gold in a bank vault to the value of the currency they issued.
With the discovery of gold in South Africa, in 1886, this effectively made the country the largest producer of gold in the world.
In the 1930s, many countries abandoned the gold standard. The movement nowadays is done purely on an electric network.
It has also become the most widespread form of investment over the years.
What you need to know about gold trading in South Africa:
Gold is traded as a commodity on the gold market. It isn’t actual gold that’s traded, but contracts or options to buy and sell specific amounts of precious metals are.
Funds traded on the gold market are just as vulnerable to market forces, but trading gold is regarded as less volatile and more stable. The highs and lows in the financial market rarely have an effect on gold.
It also often runs in the opposite direction to the stock market and the rest of the economy and there is a lower risk of price inflation.
As an individual trading gold in South Africa, you can be assured that it won’t be demanding of your time and presence. Trading gold operates in the same way that currency trading does and the gold market operates 24 hours a day.
Changes in legislation have created opportunities for individuals. People can invest in gold by buying shares in gold companies or even by investing in gold exchange-traded funds. Investing in gold bars is also a popular form of investment.
As a gold trader, the biggest risk you’re likely to face a collapse in the gold price.