Boston, Massachusetts (PRWEB) January 28, 2013
Forex trading signals provider ITM Financial advised investors to add gold into their portfolio, citing the commodity's strong performance in the last five years.
In a recent blog post, the company pointed out that the price of the commodity has consistently increased by as much as 150% despite the global financial crisis which occurred concurrently.
"As the NASDAQ Stock Market bust has painfully taught us all, any stock, no matter how mighty it seems at the time, always has the potential to plunge to zero. This will never, ever happen with gold, which has timeless self-intrinsic value not contingent on someone else’s mere promise to pay," ITM Financial CEO Curt Dalton said.
The demand for gold has been propped up by the strong appetite for gold jewelry in Asian countries like India, China, Hong Kong and Taiwan. The industry accounted for about 29% of the demand for the precious metal from 2007 to 2011. However, the medical, industrial and electronic sectors are steadily increasing their demand for gold, accounting for 12% of the demand for the same period. Because of gold's thermal and electrical conductivity, it has become the preferred electrical component of many industries. In the field of medicine, researchers are looking into gold's biocompatibility and the use of the precious metal as medical material.
The precious metal has never been out of the radar of private and institutional investors. Savvy investors have tapped into the market to protect themselves against the risk of volatile markets.
Unlike other commodities like oil which can be severely influenced by political and economic factors, gold mining operates on a global scale, buffering against any adverse effects that turmoil in a particular region may cause. Additionally, central banks sell their gold reserves from time to time, boosting the supply for the precious metal. Also, about a third of the supply of gold comes from recycling.
However, the forex signals service provider cautioned rookie investors from rushing into the gold market.
"Before you invest in gold, you should carefully consider what percentage of your overall portfolio you wish to risk in gold-related investments," Dalton said.
In testing the waters of gold investment, ITM Financial advised prospective investors to allocate an amount that is less than 5% of their capital until they get a better feel of the market.
"It is hard to argue against what gold has shown so far. There is no mistaking the profitability of gold; the only question is, are you prepared to take advantage of it today?" Dalton concluded.
For reliable day trading signal and investment information, visit ITM Financial’s website.