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Gold & Silver2019-01-23T08:41:19+00:00

GOLD AND SILVER

One of the most interesting commodities to break into is metal trading. Metal is a material that’s in demand across many industries: from silver and gold trading through palladium and many more. Still, it can be a very volatile marketplace to trade in. If you wonder where to start, here are MT4Quotes’s top tips to guide you.

How do I start gold and silver trading?

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

In the commodity market silver trading, along with gold, platinum, and a few others, is known as ‘precious metal trading’. However, many of these metals aren’t used in jewellery only. There are various industrial applications for them, like circuit board components. That is why precious metals trade so highly. You’ll find listings everywhere, but the New York Mercantile Exchange, the Tokyo Mercantile Exchange and the London Bullion Market should be your top choices for variety.

You may also explore possibilities with the ‘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, together with the NYMEX and the Central Japan Commodities Exchange.

There is one thing every commodity trader should not forget, namely that the metal market can be extremely volatile. But this also means that immense profit can be made. Volatility is primarily caused by the fact that many of the geo-political areas metals are harvested in, like the Middle East, can be politically unstable. Don’t let that stop you exploring these lucrative markets yet remember that responsible trading should always include doing your homework. Pay attention to international events so you may be able to predict market movements. Far Eastern markets are usually good indicators for the current trading prices, as they open relatively earlier than the rest of the world.

What advantages does metal trading hold?

There are a few distinct advantages to the Metal commodity market.

  • Metal is a good diversifying tool, whose market is completely independent of other markets
  • Metal may be used as a great inflation hedge
  • Unlike other investments, physical possession of metal is possible (e.g. Gold bullions)
  • There are many investment types to choose from
  • A Wide variety of metals
  • Metal is an essential, global currency as it is always in use

As you can see, there are some high-potential possibilities with metal trading. When you trade with MT4Quotes, you get the advantage of our unique platform tools to help guide you through the process, too, so it’s well worth considering investing in this crucial resource.

One of the most popular commodities to trade on the market is gold. Yet, many traders seem unable to distinguish between the various gold shares and gold stocks offered and don’t know much about the gold market in general. We at MT4Quotes can help!

Why is trading gold popular?

Gold is a highly volatile market that has an especially high growth potential. This market is no longer as safe as it used to be, but still gold is the investment instrument of choice for periods of high inflation.

Gold production of has more or less reached its limit, while at the same time gold is a supply and demand influenced product.

What influences Gold prices?

Many factors have influence on gold trading prices. Perhaps the most well-known is uncertainty. People turn to gold as a hedge product in times of high inflation and uncertainty. But we at MT4Quotes consider this not 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 issue is economic data. Jobs reports, wage and manufacturing data, GDP growth influence greatly how and where the gold price moves. Strong economies determine low gold prices, while weak economies lift gold price up.

As we already mentioned, supply and demand also have a big influence. Inflation, or the rising cost of goods, pushes gold prices higher. Inflation usually means economic growth and expansion. The push-pull between interest rates and inflation creates a market viable to gold trading.

The movement of certain currencies may also have some effect on the gold market. This mainly applies to the US dollar, as that’s how gold is listed. Falling dollar values usually push gold prices up.

Remember that these sorts of moves are primarily fear based, and so they are hard to predict.

Gold trading is an interesting stalwart of the trading market. With MT4Quotes you can easily access the gold market, as well as detailed information to help you make the right trade.

Begin trading gold with MT4Quotes now!

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