- Online trading in gold and silver without requotes
- Interesting investment tool besides forex currencies
- Highly liquid markets
- Selection of a long / short position in the curve from the market conjuncture
Trading in precious metals
Precious metals, oil, copper and refined petroleum products are commodities that play a crucial role in the modern commodity market, as well as the markets for contracts for these assets. Among the contracts for precious metals, futures, spot contracts and forwards are the most popular.
The mediator conducting the transaction is the futures market or commodities. Traders can operate in about fifty major commodity markets, with gold and silver as key assets. In addition, platinum and palladium are in high demand. The increased liquidity of these precious metals is due to their high cost and constant demand for them, regardless of the state of the economy. The largest market for precious metals is Asia, since the largest consumers of these raw materials are China, India, and also Singapore. But at the same time the key players in the market in question are the leading corporations in North America and Europe. We add that the largest producers of valuable metals operate in Canada and Germany.
The futures market, where precious metals are traded in addition to currencies and indices, operates day and night from Monday to Friday. Most often, precious metals are traded in the form of spot or futures contracts. In the first case, the actual delivery of the transaction object on a specific pre-agreed day is implied. Futures in turn are standard contracts, where the seller, together with the buyer, comes to an agreement on the sale of the precious metal in a specific volume, quality and at an agreed price with the delivery date, as well as payment on a specific day in the future (in fact, this day is the delivery date ). Please note that futures trading does not provide for actual ownership of assets and is performed online through a trading terminal.
Precious metals trading features
Recently, the volume of trading in precious metals over the Internet has increased significantly. In addition, physical possession of these assets in the form of long-term investments is also more popular. However, precious metals make it possible to earn income for short-term traders, as derivatives, as well as contracts represented on trading floors, do not need large capital for trading. Plus, they can be easily traded via online terminals.
Quotes most types of raw materials are influenced by the scale of production as well as consumption. The movement of precious metals prices is subject to slightly different principles. Considered assets instantly react to political upheavals. That is why gold and other precious metals are deservedly considered to be a protective tool in an uncertain market situation.
There are several key factors that affect the jumps of quotations and cause a rise in volatility in the market for precious metals. The main among them can be called with complete confidence the international financial institutions, whose investments have a speculative focus and can become the cause of the rise / fall in the value of assets. Another important factor is the behavior of end users. Mostly these are buyers of jewelry, the demand for which stimulates the rise in prices of precious metals. It is worth remembering about the global economy. With its stable development, the level of welfare is directly related to the demand for jewelry made of precious metals. For example, if traders want to make high-risk investments, then prices for some precious metals are falling. Plus, fluctuations in demand for a number of other assets also affect the change in prices for precious metals.