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Precious Metals

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Precious Metals

Trading Precious Metals

Since the beginning of time, gold, silver, copper, platinum and palladium have been considered as highly valuable and sought after. Their high value comes as a result of their rarity. They are expensive, difficult to mine, and appreciated by industries and investors alike.

In today’s trading world, it is possible to invest in a commodity, such as gold without actually having to physically own the metal.

At Today Markets you can easily trade gold, platinum and other precious metals online. Try metals trading with your leading regulated broker and enjoy the following benefits.

Trade gold, platinum, palladium, silver and copper with competitive spreads
Make bigger with leverage of up to 10:1
Trade on the powerful cTrader or metatrader 5 platform
Trade whichever way you think the market will go – long or short
Get live client support in your language
Copy trading platforms include Today Markets social

Advantages of Trading Precious Metals with Today Markets

Trading precious metals with Today Markets can be beneficial in a variety of ways:

Short selling
Short trading or “going short” is a way for a trader to profit when the prices of an asset are falling. This process allows you to trade and benefit when the markets are bearish (trending down). Contrary to physical metals trading, trading them as CFDs provides greater flexibility and liquidity which allows the trader to go short with fewer risks than when compared to trading the actual metals themselves.

Leveraged trading
Leveraged trading allows a trader to open a much larger position with minimum investment, meaning the trader can build up and control larger sums of money. Leverage can magnify your potential profits, and at the same time, can magnify your losses.

Auto Trading
Auto trading is a method of trading with a computer programme which helps determine if a trader should buy or sell at any given time. The trader sets up the software to make certain decisions based on technical rules that it implements.

What are Precious Metals

Precious metals are defined by their rarity, and their use as an investment vehicle (refers to any way a person or business can invest with the intention to ultimately grow their money). The term precious metals refers to the group of metals that are known to be unique and highly valuable. A mixture of economic and financial factors have historically affected the price of gold and other precious metals. When the markets are extremely volatile or bearish due to external drivers, precious metals have often been seen as a safe haven and an asset for retaining and storing wealth.

Precious metals also known as rare metals that have desired characteristics with unique beauty, are used commonly in jewellery pieces. These metals do not rust or decay, therefore, they can last for many years, often gaining in value. Some incredible uses for precious metals, for example where silver is incorporated in manufacturing are; Solar energy panels, medical and surgical equipment, everyday electronics, cell phones, cameras, mirrors and many other items. Gold is often desired for jewellery, electronics, orthodontics items since it is pliable and conducts electricity and can merge well with other metals. Popular items such as awards and medals are also made of gold.

Factors Influencing Precious Metal Trading

Several distinct factors come into play when analysing the prices of precious metals:

Supply - Can be affected by decline in production and political instability.
Demand - Mainly comes from jewellery, use in everyday technological products, and for investment purposes
Market Volalatility - Precious metals have often been used as a safe haven investment when markets are unpredictable
Currency Strenght - Most precious metals are priced in USD, and thus it would be wise to monitor the dollar index in order to better forecast the price dynamics.

Investing in precious metals is a popular way of portfolio diversification. There are several options when looking to invest, starting with coins and bullions. These usually have a very low margin and trade close to the metal’s current market price.
Mining stocks belonging to publicly traded companies give an investor the opportunity to buy them at the production level, eg. Gold mining companies.

ETFs serve the purpose for investors looking to have a mixture of exposure to precious metals and mining companies. There is a range of choices like funds in specific areas, or globally, large mining producers or smaller ones. As global economies improve, precious metal prices seem to have taken a hit since fewer investors feel the need to look for a safe haven. However, when times are tough people globally go looking for the safe bet of a precious metal bar. As a client of Today Markets you will receive regular market reports and live, streaming news updates as well as all the analysis of the latest moves in the metals markets.