Metal trading is an attractive commodity to begin with. From silver and gold through palladium, metals are always in demand in various industries. The market can be very volatile, so here is our advice on where to start.
How do I start gold and silver trading?
Trading in silver, gold or any other metal is pretty straightforward.
Silver, gold, platinum, and some others, comprise the ‘precious metal trading’ in the commodity market. Gone are the times when these metals were used mainly in jewellery – they have broad industrial applications due to their conductive properties. Starting from circuit boards onwards, these applications only add to their value. You’ll find listings everywhere, but the New York Mercantile Exchange, the Tokyo Mercantile Exchange and the London Bullion Market is the top picks for variety.
Another interesting option are ‘Industrial’ metals, like lead, tin, and copper. There’s even a burgeoning commodities market for scrap metal trading! The London Metal Exchange acts as a hub here, along with the NYMEX again and the Central Japan Commodities Exchange.
You should bear in mind that this market can be very volatile. However, that means that huge profit can be made as well. Volatility is influenced mainly by political instability in the geo-political areas metals are harvested in, like the Middle East. This should not discourage you; however, remember that responsible trading means doing research. Keeping an eye on international events is a great way to predict the market movement. Far Eastern markets will often be good indicators for the current trading prices, as they open relatively earlier than the rest of the world.
What are the benefits of metal trading?
There are some benefits specific to the Metal commodity market.
•Metal commodities are good for diversifying your portfolio, as they are completely independent of other markets
•Great inflation hedge
•Physical possession is possible unlike other investments (e.g. Gold bullions)
•There are many types of investment to select
•A broad variety of metals
•Essential, global currency- metal is always in use
As you can see, there are some opportunities specific to metal trading. When you trade with DeltaFXMarkets, you get the advantage of our unique platform tools to help you through the process, too, so it’s well worth considering investing in this important resource.
Gold has always been a very popular commodity. However, many investors get lost and confused between the various shares and stocks on the market, and are not well informed about the gold market in general. We at DeltaFXMarkets are here to help!
Why is trading gold popular?
The gold market is very volatile, with a high potential for growth. While it is not as safe as it used to be, gold is still considered the investment of choice for periods of high inflation.
Gold production is mostly at its limit, while at the same time it is a supply and demand influenced product.
What impacts Gold prices?
The gold market is influenced by a variety of markets. One of the most important is uncertainty, because gold is very much used for hedging risk when there is high inflation and uncertainty in the economic situation. Still, we at DeltaFXMarkets believe it’s far from being the only factor.
Monetary policy has a profound influence too. Gold trading becomes attractive when the opportunity cost of forgoing interest-based assets gets low.
Another big factor is economic information. Jobs reports, wage and manufacturing data and GDP growth have a significant influence on the movements of the gold price. Strong economies tend to push gold lower, while weak ones lift it up.
We must not forget the issue of supply and demand. Inflation is also one of the major factors which increases the price of gold. Inflation usually means economic growth and expansion. The flux in interest rates and inflation creates a market conducive to gold trading.
The fluctuations in the price of some currencies also affect the gold market, mainly the US dollar, as that’s how gold is listed. If the dollar drops, usually gold prices increase.
Bear in mind that such movements are mainly based on fear and are not easily predicted.
Gold trading is a curious fixture of the trading market. We at DeltaFXMarkets provide you with an easy access to the gold market, as well as detailed information to help you make the right trade.
Begin trading gold with DeltaFXMarkets today!