Precious Metals

If you’re looking for exciting new trading areas, metal commodities trading might be the right thing for you. Metal trading offers a variety of commodities – silver, gold, palladium, etc. – all of which are highly demanded in many industrial sectors. This makes the market really dynamic, which is why ECNpremium prepared some tips for the trader willing to break in there.

Basic principles in gold and silver trading

There is almost nothing complicated about silver and gold trading, and in general that applies to all metal markets.

Part of metals are united under the hat of “precious metal trading” which includes gold, silver, platinum and a few others. It is common mistake to consider only their application in jewellery. They have many rather unknown uses in different industrial sectors which is why their demand requires high pricing. The most popular listings are the London Bullion Market, the New York Mercantile Exchange and the Tokyo Mercantile Exchange.

In addition to precious metals, industrial metals can also be interesting addition to your portfolio -lead, copper, tin, etc., and if you’re in extravagant mood, take a look at the emerging scrap metal trading! For this type of commodities, top listings are the London Metal Exchange, the New York Mercantile Exchange and the Central Japan Commodities Exchange.

When trading you need to keep in mind the volatility of the market. This is a prerequisite for both big losses and spectacular profit. Factors that affect volatility include the political instability of the Middle East where many metals are mined. That is why staying informed with international developments can help you benefit from the volatility. Pay attention to markets in the Far East – since they open earlier, they can be your indicator for market movements.

Benefits of the metal trading

Here are the key advantages offered by the Metal commodity market.

Since it’s an independent market, metal can be a great addition to your portfolio

It has favorable inflation hedge

As opposed to other investments, in the case of metals you can physically own them (like gold bullions for example)

Wide range of investment types
Vast selection of metals to choose from
Metal is used all the time, everywhere – that makes it universal currency

We presented you with the opportunities of metal trading. Here at ECNpremium we can also offer you all benefits of our exclusive trading platform so that you can enjoy enhanced, stress free investment if you decide to enter on that market.

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