Precious metals trading on long / short-term:
Precious metals trading is attracting more and more investors because of an almost always rising change in these commodities. Indeed, these raw materials, used in manufacture for many products and industrial components are in great demand. Their volatility is also an explanation for why they are so attractive.
It is possible to take a position on precious metals by means of CFD, binary options or integrating them into investment banking products.
The on line trading platforms on CFD allow you to speculate on a certain number of precious metals such as gold, silver, nickel, palladium and zinc. Quantities of other commodities are offered on some other platforms but are not necessarily interesting from a trading point of view.
Long-term trading on precious metals:
This means that the investor purchases precious metals today without setting the short-term date for reselling them. Only the prospect of capital gains taken by a stronger demand will guide the investor in choosing commodities and the length of time they are held. Indeed, their exhaustible nature and intensive use mainly due to the extremely strong Asian demand, explain their still runaway price. On the other hand, you can see that the global demand for precious metals is growing in recent years.
Short-term trading on precious metals:
On line trading platforms allow you to speculate on increasing short-term CFDs but also decreasing ones by offering a leverage effect.
It should also follow two other trends in order to anticipate changes in precious metals prices:
1. The value of the US Dollar due to trading precious metals in Dollars. So a drop in the dollar makes it more attractive for investors purchasing in other currencies.
2. The world economic situation as, the better the economy is, more the demand increases for precious metals along with their prices.