Metals

Precious and Industrial Metals

Metals are commodity assets which are mined from the earth. For hundreds of years, governments have been using metals as indicators of value and mediums of exchange, making an ideal trading instrument. Precious metals such as platinum, silver, gold, and industrial metals such as copper are listed for trading based on price movements for each metal. Moreover, these metals have everyday applications ranging from jewelry to electronics.

Metal Trading with CMTrading

Metals are some of the most interesting commodities to break into. From silver and gold trading through palladium, these precious metals are in high demand across many industries. It can be a very volatile marketplace to trade in. So, where to start? Here are CMTrading’s top tips to help you get started.

HOW DO I START TRADING GOLD AND SILVER

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

Silver trading, along with gold, platinum and a few others, is termed ‘precious metal trading’ in the commodity market. Remember, many of these metals aren’t only used in jewellery, however, there are many industrial applications for them. Starting from circuit boards onwards, that is why they trade so highly. You’ll find listings everywhere, but the New York Mercantile Exchange, the Tokyo Mercantile Exchange and the London Bullion Market are the top picks for variety.

You may also want to look at 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, along with the NYMEX again and the Central Japan Commodities Exchange.

There is one thing every commodity trader should know; this market can be very volatile. However, that means that immense profit can be made as well. Volatility is primarily driven 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 deter you from these lucrative markets, however, remember that responsible trading involves doing your research and applying risk management techniques to minimize potential losses. Paying attention to international events is a great way to predict the market direction. Far Eastern markets will often be good indicators for the current trading prices, as they open relatively earlier than the rest of the world.

WHAT ADVANTAGES DOES METAL TRADING offer?

There are a few distinct advantages to trading metals on the commodity market.

  • Precious metals make for a great diversifying tool especially during times of economic crisis
  • Great inflation hedge
  • Physical ownership, such as gold bullion, is also possible unlike other assets
  • There are many investment types to choose from
  • A wide variety of metals are available
  • Essential, global currency – metals are always in demand

As you can see, there are a few distinct possibilities with metal trading. When you trade with CMTrading, you also get the advantage of our unique platform tools to help you through the process, so it’s well worth considering investing in this exciting market.

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