Metals (Gold and Silver)
Gold and silver have been attracting more and more investors recently. In this era of financial uncertainty, when market collapses are looming large, people regard paper money as less valuable than before.
That’s why precious metals are gaining popularity. Gold and silver are the most in-demand metals but differ from each other in a couple of ways. Before investing, it is important for any investor to know a few things about these outstanding metals to find the right way of trading and to ensure profit.
Gold is widely considered to be the perfect investment to protect your funds against inflation during periods of financial turmoil and dollar weakening.
Gold is commonly used for hedging against all sorts of market calamity. While less tangible markets such as foreign exchange or shares can fall sharply on negative economic data, precious metals have intrinsic value and keep holding their value and even rise in price. Moreover, taking into account that gold is a limited natural resource which cannot be manufactured artificially, the demand for it keeps rising, especially in India which is the world’s biggest consumer of gold. Certain Indian festivals cause sky-rocketing demand and price growth every year.
In a situation of significant government debt and currency devaluation, demand for gold is stable and its price keeps growing. Gold is also a great way to hedge against inflation. It has a negative correlation with real interest rates. As inflation rises and real interest rates fall, the gold price is likely to keep rising as it attracts investors who are unable to extract a decent return from traditional asset investments.
Nevertheless, you must remember that even during economic boom times and a rising dollar, the price of gold can move in the opposite direction. Besides, even during periods of price growth, there is always the question of how far gold can rise beyond the $1000 per ounce mark . It is very important to learn about the nature of the gold market as well as trading in other instruments before risking large sums of money. Trader’s Way offers extensive educational materials and free demo accounts for all our clients to understand the market better and to ensure successful trading.
Silver has a lower price but a more speculative nature than gold. It is much more volatile; hence it is more risky and profitable, at least in the short run. Silver is used for industrial purposes, and with the rise of nanotechnologies its potential may be even greater. Since it has unique qualities and is useful for industrial processes, the price of silver increases during periods of economic prosperity while gold falls in price. Moreover, there are few silver mines left in the world and the availability of silver is very limited, putting more upward pressure on silver prices. Keep all that in mind and follow market developments to gain sufficient knowledge before making any investment.
The most flexible way to trade gold and silver is CFD (contract for difference) trading with its high liquidity and tight spreads. Your profit or loss is determined by the change in the value of the metal regardless of the contract size, so you do not need to worry about storing the actual metal.
Trader's Way offers you all the advantages of Gold and Silver CFD trading by whichever method you choose to trade – with fixed or variable spreads, on Micro, Standard or ECN accounts. Metals trading is also carried out via the most popular and user-friendly MT4 trading platform, available from any device anywhere due to our Trader's Way Web Trader. Its easy-to-use interface with detailed charts, indicators and programming options is very convenient, easy to understand intuitively, and is time-proven and appreciated by an overwhelming majority of traders. At the same time you can trade in all the other trading instruments we offer, enjoying the widest choice of trading opportunities under one broker.
In order to see the list of instruments available and trading conditions please choose an account type.