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.

Why is trading gold popular?  

Gold trading is a stalwart of the trading market and has been for decades.  

Not too long ago, trading gold was difficult as you had to physically procure and sell the rare metal. Today, you gain exposure to the commodity markets and gain from movements in gold prices with CFDs (Contracts for Difference). This is a very convenient approach to gold trading as it’s a 24/7 market.   

Gold remains volatile as it’s heavily dependent on supply and demand. This means, however, that the potential growth is likewise high. Experts believe the production of gold is more or less at its limit, though many companies are seeking alternative locations for seams such as in the deep sea. It’s still considered safer than trading forex, which can be significantly more volatile and remains the instrument of choice during periods of high inflation.  

What influences Gold prices?  

Like any commodity, many factors can influence the gold trading price, the biggest of which is uncertainty. Investors turn to gold during times of high inflation and uncertainty, such as during the current global pandemic.  

Global monetary policy has a huge influence too as well as economic issues; Strong economies push the price of gold lower, while during a recession will raise it.  

The movement of certain currencies, such as the US dollar, will drive the price of the gold market. In 2020, the US economy faced collapse due to COVID19 and as a result, the dollar, already at a 22-month low, crumbled. This is one of the biggest contributors to the record gold price.  

 Top gold trading tips:  

  • Consider whether markets are at risk  
  • Review the performance of the US Dollar and the gold price  
  • Beware of the central bank buying or selling  
  • Research the demand for gold jewelry and cosmetics  
  • Research the current industrial demand for gold  
  • With global lockdown consider the supply position 

How to profit from movements in gold prices 

With a CMTrading account, you can speculate and profit from the rise and fall of gold prices during the trading session. 

As soon as your account is funded and active, you will be able to buy or sell gold (XAU/USD) contracts in order to start generating returns regardless if the market is trending upwards or downwards. This is possible because CFDs (Contracts for Difference) allow traders to open a sell position in order to profit from falling prices as well.  

The trading platform offers an easy and straightforward process to open and close your positions as well as the necessary risk management tools to protect your investments from unfavourable trades.  

With a minimum deposit requirement of $100, anyone can register and activate a trading account in a matter of minutes.  

Moreover, each client is assigned with personal Trading Specialist who can help them find a suitable trading strategy that aligns with their investment goals and risk tolerance. 

How to profit from movements in gold prices 

CMTrading provides clients with access to a wide range of tradable commodities with 50:1 leverage ratio (with the exception of gold and silver which offer 100:1).    

You can trade the following commodities with CMTrading:  

  • Gold, silver, platinum, copper and palladium  
  • Corn, wheat, coffee and sugar  
  • Gas, Crude and Brent oil  

We offer superior trading conditions available exclusively to CMTrading clients and we also provide comprehensive trading education for traders of all skill levels through weekly online webinars and workshops.

Each client receives a customized education package with learning resources covering the fundamentals of trading the markets as well as advanced tips and trading strategies.

For further information and guidance, clients can get to bear with their Trading Specialist to receive daily updates on the foremost favourable assets of the day and discuss risk appetite and profit targets.

Simply click the button below to open your account and we’ll facilitate your start within the exciting world of commodity trading today.