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Tuesday, August 4, 2009

Gold is A Hedge Against Inflation

By Michael Swanson

The precious metal gold has always been a commodity, and believe it or not, there are people who invest in gold to make profits on a regular basis. Whether it's short-term gold investing, or long-term there is a chance to make profits.

The market for special metals is a bit different from other commodity markets, but it still rises and falls, and can stay steady. For those who enjoy short-term trading they are looking for small profits that they make rather quickly.

They may hold onto the gold for just a few moments or they may hold onto it for a day, a week or a month. This is all considered short term gold trading. And while profits are made, it's a small amount at any one time.

Those who are looking for larger profits often will be long term gold traders. They may hold onto their precious metal for anywhere from six months to a year before they trade it off.

The whole point is to make a profit by either selling or buying gold at the right time. You can invest in gold just like you do other commodities, through a broker of one sort or another.

You can now look to different types of Internet trading platforms in order to trade gold. This means you do not have to go to a broker's office, and don't have to make quick phone calls in order to make your trades. In this way, the gold market has opened up to everyone, and it's very possible that everyone can make profits. It is important that you to remember that anytime you're trading on commodities that not only do you have an opportunity to make profits, but you can also lose your money.

Therefore, understand your trading platform and your broker contract completely before investing any type of money. It's important to keep an eye on what gold is doing so that you know whether it's rising or falling and can make your profits when the price is more than when you bought it. - 23212

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