In this modern age, social media and online platforms affect just about everything. What began as an easy way to connect with friends has now become a treasure trove of data and information sharing. It is on our computers, tablets, phones and even watches. It is a mechanism that companies use to reach their consumers and a way for individuals to reach their peers. Have you ever thought of the power that social media could have over your investments in gold?
Free, Up to the Minute Information
Social media provides a wide variety of information, from articles in credible sources on live gold news, to your high school friend speculating about the market in his status update. You can get data from all over the world, 24 hours a day. With platforms like Twitter, users can follow hashtags and specific users to see how many people are talking about the economy, natural disasters and current events. You can even get real time tweets and status updates from government agencies from across the globe about interest rate changes and GDP growth results.
With social media, gold investors can get the news faster than everyone else. You no longer have to wait for the nightly news or the morning paper and this means that you can tap into potential market changes faster than ever.
Social media outlets can provide announcements from gold mining companies, breaking news regarding the economy and political situation of gold producing countries and can even provide trending opinions on what the gold market is doing and what changes are ahead. By harnessing that information investors can take advantage of online gold trading and make an easy trade at just about any time with just a few clicks of the mouse.
Avoiding the Pitfalls of Social Media
Access to instant news and trending social opinions does have advantages, but it also has several snags investors should avoid. Just like anything else on the internet, you can’t trust everything that you read, especially when it isn’t vetted in places like Twitter and Facebook. If you see a news article on a social media site that could influence a gold trading decision you should cross check it with other credible sites.
Furthermore, gold investors should be careful to know the difference between event detection and sentiment analysis:
Event detection is something like an important news story of a natural disaster or people “checking in” to a political protest on social media in a gold mining region. Sentiment analysis would show trending opinions and feelings toward gold production levels, the outlook of a specific mining company, or speculation on pending legislation that could alter the mining industry’s future.
Making It Work
The data that social media provides gold investors is only good if it is actually found and used. Gold investors should join investing think tank groups and follow influential players in the gold market online. This will allow gold traders to see the general feeling about how the market is doing and what gold investing decisions to make next.
Investors should also pay close attention to breaking news stories, especially as it relates to the gold market and economic changes around the world. Topics to pay close attention to should include:
- Earnings announcements from gold mining companies
- Changes in CAPEX projects in the mining industry
- Interest rate changes in the U.S.
- Mining accidents and natural disasters affecting gold production
- Political changes, both peaceful and non-peaceful, in mining countries
With all of these topics discussed frequently on social media, the ability to make informed online gold trades has never been easier.
How to Trade Gold Online
The Price of gold is constantly on the move. Take advantage of the daily price changes in gold with an online trading account. Some brokers offer bonuses of up to 30% on your first deposit (Terms and conditions apply). Open Gold Trading Account Here
The broker trading platform will also provide you with numerous charting tools and the ability to trade other commodities and currencies in addition to gold CFD’s. You might also want to begin trading with a demo account before attempting to risk any of your own money. That way you can practice trading with virtual money on the demo platform first.