Trading Gold Success

Since the ancient times, gold is a safe-haven investment for wealth retention, especially when there are inflation fears. Gold futures are formal contracts to buy or make delivery of physical gold bars in a future date. The price in the contract is determined when the contract is written.  As prices change, the value of the gold in the contract also goes up and down.

How To Succeed In Trading

Anyone who wants to make a success in gold futures trading would need two things. One, he must learn how to analyze the price charts and decide where the price would go next. How right is the decision would need the reading of the market conditions. Then, he must pull the trigger and commit placing the buying or selling transaction in the market.

Understand The Price History

From the Middle Ages until 1931 gold prices have been fairly stagnant. In 1931 the british dropped the gold standard. These causes wild fluctuations. 4 years later, United States officially set the price at $35 an ounce. Another six years later, the British start to devalue the pound, and causes gold to rise from 8.66 pounds per ounce to 12.50 pounds per ounce. Another 30 years later, United States start to devalue the dollar, and causes gold to rise $42.22 per ounce. Dollar floated and gold rose greatly to $850 or just a little under 400 British pounds per ounce.

What Really Determine Prices?

Gold future prices are based on the current spot gold prices and public's perception of its value. It is hard to tell which direction prices are heading and how much of a movement there will be. Today, gold future prices generally have a weekly volatility of $100 and are relatively high compared before 1931. Taking inflation into consideration, gold price is relatively low compared to the early 1970s.

In the past ten years, many central banks have reduced their gold holdings, flooding the supply in the open market. Some experts has stated that this trend will reverse in the next couple of years causing gold prices to go up again.

Other reasons for gold price to increase is that worldwide demand remains high as governments use it to combat inflation. It is also regarded as the international medium of exchange. Gold mines and depositories decide the supply of gold on the market. If holdings in depositories increased and mines are not able to keep up with demand, prices will rise.

Register Your Small Business

Find out how to register a small business

The process of registering a small business ranges from easy to difficult depending on what business entity the business wants to create.

Sole Proprietorship

The Sole Proprietorship entity is the easiest entity type to register.  All a sole proprietor has to do is start trying to make a profit.  The government and the IRS will assume the sole proprietorship is in business if the owner is acting like he or she is in business.

Partnership

The partnership is also easy to register.  Like the sole proprietorship, a partnership simply has to start trying to make a profit.  T government and the IRS will assume the partnership is in business if the owner is acting like he or she is in business.  Because a partnership, by definition, is two or more people involved in a business, it is wise to create a partnership agreement just so everything about the partnership is clear and in writing.  Having a partnership agreement avoids many conflicts.

LLC

The limited liability company, or LLC, is more difficult to register than the sole proprietorship or partnership business entities.  To register a LLC small business, the business owner needs a Federal Tax ID.  The IRS will give the business a Federal Tax ID online.  It only takes about 15 minutes to fill out the application.  Once the business has a Federal Tax ID, the business owner has to register with the secretary of state for the state where the business operates.  So, if the place of business is in Colorado, go to the Colorado Secretary of State's website. Here is a list of all fifty secretary of state websites.

The business owner will have to file a new entity form and pay a fee. For example, in Colorado, to register a LLC costs $50.

Corporation

Like the LLC, the corporation is more difficult to register.  The business owner needs a Federal Tax ID for a corporation, just like a LLC.  The business owner will also have to register with the secretary of state for the state where the business operates.  So, if the place of business is in Colorado, go to the Colorado Secretary of State's website. Here is a list of all fifty secretary of state websites.

The corporation also has to file a new entity form and pay a fee.  However, the fee is usually higher for corporations then a LLC.

These four types of business entities are not the only business entities out there, but they are the most common.  It is also good to note that a sole proprietorship and partnership can register as a corporation or LLC, but are not required to do so by law.  If you have any further questions, please seek the help of a competent lawyer.