Precious Metals Trading

One of the most interesting commodities to break into is metal trading. Metal is in demand across many industries. From silver and gold trading through palladium, it can be a very volatile marketplace to trade in. Where should one start? Here are the HighFxMarkets’s top tips to help you get started.

How do I start gold and silver trading?

Silver and gold trading, or any other metal you might prefer, is a simple market to understand.

In the commodity market, the term ‘precious metal trading’ includes silver trading, along with gold, platinum, and a few other metals. Do not forget that many of these metals aren’t only used in jewellery, but have many other industrial applications as well, such as circuit boards, and that is why they trade so highly. Amongst the listings worldwide, the New York Mercantile Exchange, the Tokyo Mercantile Exchange, and the London Bullion Market are the top picks for variety.

You should familiarize yourself with the ‘Industrial’ metals, like lead, tin, and copper. There is even a burgeoning commodities market for scrap metal trading! The London Metal Exchange acts as a hub for them, along with the NYMEX and the Central Japan Commodities Exchange.

This market can be very volatile. Every commodity trader should know this. That also means that an immense profit can be made. Many of the geo-political areas where metals are harvested in, like the Middle East, can be politically unstable and this is the reason for that volatility. This, however, should not deter you from these lucrative markets. You should only remember that responsible trading includes doing your homework beforehand. A great way to predict the market movement is to pay attention to international events. Good indicators for the current trading prices often are the far Eastern markets as they open relatively earlier than the rest of the world.

What advantages does metal trading hold?

Metal commodity market has a few distinct advantages:

Metal makes is completely independent of other markets and it can be a great diversifying tool,

Great inflation hedge

Unlike other investments, physical possession is possible (e.g. Gold bullions)

There are many investment types to choose from
A Wide variety of metals
Essential, global currency- metal is always in use

Metal trading provides a few distinct possibilities. It is well worth considering investing in this critical resource when you trade with HighFxMarkets. With us, you get the advantage of our unique platform tools to help you buoy through the process.

Gold trading is one of the most popular commodities on the market and yet many users can't distinguish between the various gold shares and gold stocks offered and don’t know much about the gold market in general. We at HighFxMarkets are here to help!

Why is trading gold popular?

Gold is a highly volatile market and the potential growth is especially high. Although no longer a safe haven as it was traditionally, gold is still the preferred investment instrument for periods of high inflation.

The quantity of the gold is more or less fixed worldwide, but at the same time it is a supply and demand influenced product.

What influences Gold prices?

There are many factors that influence gold trading prices. In times of high inflation and uncertainty people usually tend to run to gold as a hedge product. And perhaps the most well-known factor is uncertainty. But we at HighFxMarkets believe it’s far from being the only factor.

Monetary policy has a profound influence too. When the opportunity cost of forgoing interest-based assets gets low, gold trading becomes attractive.

Economic data is another big factor. Strong economies tend to push the gold price lower, while weak ones lift it up. The movement of the gold price is highly influenced by jobs reports, wage and manufacturing data and GDP growth.

Supply and demand have a big influence too as mentioned above. Gold prices are also pushed higher by the rising cost of goods – inflation. But inflation usually means economic growth and expansion. The push-pull between interest rates and inflation creates a market conducive to gold trading.

The movement of certain currencies can also have an effect on the gold market. As gold is listed to the US dollar, falling dollar values tend to push gold prices up.

Remember that these sorts of moves are primarily based on fear and that’s what makes them hard to predict.

Gold trading is an interesting stalwart of the trading market. With HighFxMarkets you get an easy access to the gold market, as well as detailed information to help you make the right trade.

Nevertheless, gold trading is an interesting stalwart of the trading market. And we, at HighFxMarkets, offer you an easy access to the gold market and detailed information to help you make the right trade.

Start trading gold with HighFxMarkets today!