Earning From Gold With A Spread Bet
In recent months the US dollar has been on an intrepid journey and as a rule this journey has headed south. As the value of the dollar has declined the value of gold has rocketed, surpassing its record-high price but the number one downside to investing in gold is that gold itself is priced in US dollars, therefore wiping out your profits. However there is a way of earning from gold, with a spread bet at a spread betting firm such as CMC Markets.
With spread betting your trades are all made in your own currency so if you deposit sterling into your spread betting account you will receive sterling profits back, avoiding losing your profits to the very thing that gave you them. For example, if you make a trade for gold at $1,250, wagering £5 per point your position would be worth 1,250 x £5 = £6,250. If the dollar dropped and the price of gold rose to $1,350 your new position would be $6,750 and you would have made a profit of £500. However, if you had traded for stock you would lose the majority, if not all of your profit through the devaluation of the dollar.
Another advantage to spread betting on the value or strength of gold in the UK is that your profits don’t fall victim to the dreaded tax man. Unlike forex or market trading you don’t have to pay capital gains or income tax on spread betting earnings as you’re technically betting, which is free of taxation in the UK.
If you’re looking to take advantage of the ever-increasing price of gold there’s no better way than spread betting. And there’s no better spread betting company than CMC Markets. Open a spread betting account at www.cmcmarkets.com today.
