Trade Precious Metals with RedRock500
Before the stock market was invented and before the cryptocurrency era came, precious metals like gold, silver, and platinum were being used as currencies and trading commodities. Trading technology has advanced, but precious metals are still one of the most appealing assets that raise the commodity market’s value. Precious metals and other commodities like crude oil and copper are traded on contract-based futures and can result in major profits for long-term and day trade.
Nowadays, Asia is the most heavily-invested continent for purchasing precious metals; in general, European and American investors mostly dominate the commodity market. Regardless of your location, you have the potential to invest in precious metals and make money from it.
The market where investors can invest their money in goods is called the futures market, or the commodity market. Investors have access to over 50 commodities, which help them invest their money in precious metals, oils, and other valuable metals that act as building materials like copper.
The most famous benefit when it comes to investing your money in precious metals is their quality “intrinsic value.” This means that its market value depends not on the asset’s supply and demand but on the asset properties themselves. Let’s talk about gold; it has been valued for centuries, it helped produce high-end luxury products and is immune to inflation, and you cannot just decide suddenly to print more gold. It is also exceptionally convenient to get involved in, as it is “open” online 24 hours a day except for the weekends. It means that you can get involved in precious metal trading regardless of your location.
Precious metals have been valued for centuries and hold a unique place in the current-day market. Their value will not be going away any time soon and may be especially beneficial as a portfolio diversifier for traders who prefer long-term trading strategies. However, the trick for making money buying and selling precious metals is knowing and understanding both the risks and rewards involved. The volatility of the precious metal market should not be underestimated, but this should also not scare away traders. The volatility is where the ability to make or break a fortune is found.
What affects the values of precious metals?
Unlike other assets, precious metals’ value does not depend on a system of economic supply and demand. Instead, there are many outside factors that influence the value of precious metals, which lead to a volatile market. The significant influencers are:
Risk & Return
The high risk follows a high profit. Based on traders and investor appetite to take the risk and hope of return, he can get ready his portfolio. Commodity buying and selling are not like trading stocks at the spot prices. It is like a futures trading process.
Demand & Supply
Demand & supply are the basic factors that influence the movement of any commodity product prices. The law of demand & supply is similar to equity as well as the commodity markets. However, all commodities' demand & supply vary during diverse periods depending upon their seasons, domestic & global conditions, and other major factors changing their characteristics.
Global and Domestic Economy
The economic scenario considerably affects the prices of commodities. Demand & supply of any commodity has a direct relationship with the financial condition in any state. Depending upon the behavior of the commodity, global & domestic economic situations affect the commodity product prices. E.g., Steel prices highly depend on worldwide economic factors as this is an internationally and massively used commodity. However, as far as a commodity like Kapas (cotton) is concerned, international factors affect less than national factors.
Choose your platform
During our 10 years of experience, we have noticed the needs and preferenced of our customers, so we are offering them all the versions of available platforms. You can choose between RedRock500 Webtrader for PC, RedRock500 Webtrader for Android devices, RedRock500 WebTrader for iOS devices and Webtrader which is a web-based trading platform, created by our team of software developers, financial analysts and marketing department.