We had talked at some length about crypto-monnaies which are currently among the most volatile securities in finance. These are investments that allow rapid gains but also among the riskiest. What about, in mid-2018, more traditional investments like those in precious metals? It is also possible to invest in it on the internet with good responsiveness and without high bank fees. What should you know before you start investing in precious metals? Decryption ...
The Forex market is first and foremost the world currency market. However, in addition to currencies in the Forex market and precious metals - gold, silver, platinum and palladium. And that greatly increases your earning potential.
Trading gold in Forex is not a job for newcomers to the market. In order to build a clear strategy and have a full understanding of how to trade gold on for example online forex trading, you have to spend time in the forex market. This will provide you with the trading experience and skills necessary for the effective conclusion of transactions with gold in Forex.
First of all, the important advantage of Forex gold trading is the 24 hour work of the market. However, the trader should remember that the gold fixing quotes occurs several times a day: at 24:10 am and 30:15 pm London. Therefore, the best time to be successful in forex gold trading will be a gap of between ten and a half and three hours.
The two most important markets for precious metals are London and New York. Trades in London - is one of the oldest and most important in terms of trading volume of the physical sale of precious metals market in the world.
Since 1919, the “London Fix” price has been the main point of reference for traders worldwide and is used in all contracts entered into for the physical supply of precious metals. It is indeed in London that the price of gold and silver is determined.
World Precious Metal Trade Centers
Currently, the price of metals ("London fixing") is set daily at 10:30 am and 15:00 pm, and the price is determined in US dollars per troy ounce. These prices are official, used by all players in the precious metals market - mining companies, consumers, central banks, etc. And in the time interval between the announcement of the London fix, precious metal prices move freely, determined by demand and supply.
The New York market is known for its volume of futures traded on the New York Mercantile Exchange NYMEX. Currently, metal futures traded on the COMEX Exchange (a branch of the New York Mercantile Exchange NYMEX) is the only real way to trade precious metals at world prices, available to all citizens.
Other important centers of the precious metals trade are in Zurich, Tokyo, Sydney, Hong Kong and other places. Thus, the trading of precious metals, as well as currencies, continues around the clock.
How to make a deal with gold or silver?
Technically, transactions with gold (XAU designation) or silver (XAG designation) are concluded like transactions with any pair of currencies, with the only difference that one of the currencies in these transactions is metal. precious.
There is no trading strategy for precious metals: any trading strategy, For example cfd trading, is applicable to precious metals trading, because all components of trading strategies: technical indicators, linear technical analysis tools, moving averages react to price change.
What should I consider when working with precious metals?
When working with precious metals in the Forex market, you should be guided by their place in the economic system. In particular, the price of gold depends on the world economic situation.
Gold has always been an indicator of the efficiency of the global economy. In the period of its growth, when consumption increases and, after it, all sectors of the economy increase, the price of gold decreases. Conversely, during economic stagnation, downturn or recession, gold is seen by investors as the most stable and liquid way to save capital.
In addition, the price of gold is affected by other factors. For example, the value of the dollar. When the dollar rate falls chronically, gold acts as a reliable alternative - a temporary shelter in which you can "wait" for a period of high volatility in the forex market. Second, the cost of oil. The price of oil is rising - the prices of gold are also rising.
Gold always comes at a high price
The price of gold is of particular importance to the Forex market. This is one of the indicators of the behavior of the dollar in the Forex market: the higher the price of gold, the lower the dollar rate.
And since the dollar is the world's first reserve currency used to determine cross rates of other currencies, and ranks first in terms of Forex trading volume, the price of gold becomes an important factor for the entire market. Forex market.
Money takes second place in the ranking
The second place in terms of trading volume in the Forex market among precious metals is silver. Aggressive investors may be interested in silver because the price of silver often fluctuates under the impact of global political and economic conditions.
Sometimes there is a sharp increase in the price of silver, on which traders can set a decent profit.
In comparison with gold and silver, the trading volumes with platinum and palladium in the Forex market are insignificant.
The price of gold and silver is relatively constant, but sometimes it has the property of fluctuating
According to MaxiMarkets, the historical decline in metal prices was noted:
at the price of gold - in 1999 ($ 251 per troy ounce);
at the price of silver - in 1991 ($ 3,5 per ounce).
Since 2003, precious metal prices have risen steadily, reaching their highest levels last year: gold prices on world markets have passed the $ 1 mark ($ 000 per ounce). The prices of other precious metals in recent years are also near the maximum. In particular, for the first time in the past 1 years, the price of silver has approached $ 032 per ounce. Platinum and palladium also rose to $ 30 and $ 21, respectively.