We had talked at some length about crypto-monnaies currently one of the most volatile securities in finance. These are investments that allow rapid gains but also among the riskiest. What about mid 2018, more traditional investments like those in precious metals? It is also possible to invest on the internet with good responsiveness and without high bank fees. What do you need to know before you start investing in precious metals? Decryption ...
The Forex market is above all the world currency market. However, in addition to currencies on the Forex market and precious metals - gold, silver, platinum and palladium. And this greatly increases your earning potential.
Negotiating gold on the Forex is not a job for newcomers to the market. In order to build a clear strategy and to have a complete understanding of how to trade gold on online forex tradingyou have to spend time on the foreign exchange market. This will provide you with the trading experience and skills necessary for the effective completion of gold trading on Forex.
First of all, the important advantage of gold trading on Forex is the 24 24 work hours of the market. However, the trader should remember that gold fixing quotes occur several times a day: at 10: 30 and 15: 00 London. Therefore, the best time to succeed gold trading on the forex will be a gap between ten and a half to fifteen hours.
The two largest precious metals markets are London and New York. Trades in London - is one of the oldest and most important in terms of trading volume of the market for the physical sale of precious metals in the world.
Since 1919, the "London Fixing" price is the main point of reference for traders worldwide and is used in all contracts concluded 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 10h30 and 15h00, 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, prices of precious metals 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, trading in precious metals, as well as currencies, continues 24 hours on 24.
How to make a deal with gold or silver?
Technically, transactions with gold (XAU designation) or silver (XAG designation) are concluded as transactions with any currency pair, with the only difference that one of the currencies in these transactions is the metal precious.
There is no trading strategy for precious metals: any trading strategy is applicable to trading precious metals, because all components of trading strategies: technical indicators, linear technical analysis tools, moving averages react to change of price.
What should I consider when working with precious metals?
When working with precious metals in the Forex market, one must be guided by their place in the economic system. In particular, the price of gold depends on the global 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, in the event of economic stagnation, recession or recession, gold is perceived 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 declines chronically, gold acts as a reliable alternative - a temporary shelter in which you can "wait" for a period of high volatility on the foreign exchange market. Second, the cost of oil. The price of oil is rising - gold prices are also rising.
Gold always has a high price
The price of gold is of particular importance for the Forex market. This is one of the indicators of the dollar's behavior 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 trading volume on the Forex, the price of gold becomes an important factor for the whole of the world. Forex market.
Money takes second place in the ranking
Second place in terms of trading volume in the Forex market among precious metals is silver. Money may be of interest to aggressive investors because the price of money often fluctuates under the impact of the global political and economic climate.
Sometimes there is a sharp increase in the price of money, on which traders can set a decent profit.
In comparison with gold and silver, 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 dollars per troy ounce);
at the price of money - in 1991 (3,5 $ an ounce).
Since 2003, precious metal prices have risen steadily, reaching the highest levels last year: gold prices in global markets have surpassed 1 000 $ (1 032 $ an ounce). Prices of other precious metals in recent years are also near the maximum. In particular, for the first time during the last 30 years, the price of silver has approached 21 $ an ounce. Platinum and palladium also increased to 2 373 $ and 582 $, respectively.