Is It Still Worth Selling Gold Coins and Currency Online for Profit in 2019?
Precious metals have long been a highly popular method of investing in physical assets and gold and silver coins are an established way of acquiring some financial exposure in this investment area.
Trading online through someone like Hong Kong coins can be easy and convenient and will give you access to many of the world-renowned mints, so you have plenty of choices with regard to what coins you might want to buy and sell. A similar business model exists online for selling gold jewelry, led by a few industry leaders such as SellYourGold.com
The main question is whether the market conditions for gold coins and currencies online offer an opportunity to create some profits.
Here is a look a whether current market sentiment should give you cause for encouragement or sound a note of caution.
The safe-haven appeal of bullion and coins
One of the fundamental factors that tend to drive the gold price, in particular, is whether there is a bullish or bearish outlook with regard to the global economy.
Geopolitical tensions around the world and economic uncertainty have always had the effect of seeing investors hedge their bets on the stock market and seek a safer alternative for their cash.
There are plenty of political issues in different parts of the globe that could easily have a detrimental impact on stock markets in general and it is this safe-haven mentality that might well see gold prices enjoy a good year by rising above current levels.
One cause for optimism in this area, for example, would be the prospect of a weaker US dollar as a result of the Federal Reserve’s rate-hike cycle reaching a plateau.
The US dollar has enjoyed a rise in five of the last six years but if that trend has reached a peak it does create better conditions for the prospect of gold to trend upward.
Emerging markets are highly relevant
It is a salient point to note that eight of the ten top countries for gold consumption are also classed as emerging market nations.
The reason why this is significant is that countries that are on the rise in economic terms are also highly likely to be witnessing a growth in their middle-class ranks.
As personal wealth amongst the middle-classes in these countries grows it stands to reason that these consumers will seek out some of the traditional trappings and symbols of wealth, which means gold is going to be on their shopping list.
It is this potential emerging-market demand that could help fuel a rise in gold prices, which should also translate into a potential rise in the value of assets such as gold coins.
Traders data can point the way
If you are looking for another clue as to where the gold price might be headed in 2019 and beyond it can pay to read the Commitment of Traders report (COT).
What the numbers seem to be saying is that the number of long contracts of non-commercials is at a historically low point, suggesting that any downside in the gold price is considered to be limited.
The COT report appears to be indicating that the price of gold may have bottomed out and there is a bullish market sentiment trending toward an upward movement of the gold price in the year to come.
It is up to you to make your own interpretation of where the gold price is heading in 2019, especially as it will be your cash that you are putting down, but at least you can use this information to maybe point you in the right direction.
Where is the dollar headed?
Moving on to currencies, there has been plenty of interest in the price of the US dollar in view of the stream of economic and political news that is keeping journalists and traders busier than ever.
The US dollar has enjoyed a decent run against its peers in recent times but there are questions to answer in 2019 as to whether the American economy might run out of steam and there is also the Federal Reserve’s interest rate policy that could have a significant impact on valuations.
When FX traders and market analysts make their forecasts and bet their cash in a certain direction it will often prove to be a useful pointer for your own online currency trades and the drums seem to be beating with the message that the dollar could end up performing weakly against the other major currencies in the year ahead.
If some of the forecasts and indicators prove to be accurate there is a prospect of the US dollar losing ground against major currency rivals in 2019 and giving back some the gains made before.
Making a profit
There are a multitude of ways to try and generate a profit by trading coins and currencies online, and the key point to remember, especially when it comes to currency trades, is that you can make money when the price falls as well as when it rises, provided your trade has been placed in the same direction.
Currency markets or Forex (FX) is the biggest investment market in the world so there will always be good liquidity if your chosen currency pairs are in the mainstream.
There are eighteen major currency pairs to trade and you won’t be stuck for choice if you decide to trade FX this year.
If you are interested in buying coins online in the near future it would may well be a decision that is influenced by your own view on where precious metal prices are right now and where they will be in the months and years ahead.
Understanding what influences the price of coins and what drives market sentiment and fear could help you get your timing just right, which is always good news when you are trying to generate a profit.
Alternatively, it could be that you want to have some coin holdings as a safe-haven option if it turns out that we are all swimming against the tide and the global economy is going to come under pressure at some in the year ahead.