Trade Precious Metals with RedRock500
Before the invention of the stock market and before the era of cryptocurrency 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 value of the commodity market. Precious metals and other commodities like crude oil and copper, are traded on contract-based futures and can result in major profits for both long-term and day trade.
Nowadays, Asia is the most heavily- invested continent when it comes to purchasing precious metals, in general, the commodity market is mostly dominated by Europian and American investors. It doesn’t matter your location in the world, wherever you are, you have the potential to invest in precious metals and make money out of it.
The market where investors are able to 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 is not depended on the supply and demand for the asset, but from the asset properties itself. Let’s talk about gold, it is valued for centuries, it helped on producing high- end luxury products, and is immune to inflation, and you cannot just decide suddenly to print more gold. It is also especially convenient to get involved in, as it is “open” online 24 hours a day except on the weekends. This means that, no matter where you are located in the world, you can get involved in precious metal trading.
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 to 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. In this volatility, the ability to make or break a fortune is found.
What affects the values of precious metals?
To put it simply, not as other assets, the value of precious metals is not depended on a system of economic supply and demand. Instead, there are a number of outside factors that influence the value of precious metals, and which lead to a volatility market. The major influencers are:
Risk & Return
High profit is followed by the high risk. Based on traders and investor appetite to take the risk and his hope of return, he can get ready his portfolio. Commodity buying and selling is 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 the demand & supply is similar to equity as well as the commodity markets. However, demand & supply of all types of commodities vary during diverse time periods depending upon it’s seasons, domestic & global conditions and different other major factors changing its characteristics.
Global and Domestic Economy
Economic scenario considerably affects the prices of commodities. Demand & supply of any commodity have a direct relationship with the financial condition in the any state. Depending upon the behavior of the commodity global & domestic economic situations affects the commodity product prices. For e.g.; Steel prices, highly depend on worldwide economic factors as this is an internationally and the massively used commodity. However, as far as a commodity like Kapas (cotton) is concerned international factors affect less, when compared to nation 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.