TRADING PRECIOUS METALS
Stockholder purchase gold for the variety of reasons but the most important reasons are:
- Barrier against Inflation
- Barrier against global instability
- Figure out demand growth
- Portfolio Diversification
How to invest in gold?
Most popular ways to invest in gold are:
- Gold Exchange Traded Funds(ETF)
- Mining stocks
- Physical Gold(ex. Gold coins)
Gold ETFs: By purchasing Gold ETFs, you don’t have to worry about anything, it’s so simple to purchase and sell ETFs by using any financial broker. There are majorly two gold ETFs options available one is Street Track Gold Shares, which is traded on the New York Stock Exchange and iShares- Comex Gold Trust, which is traded on American Stock Exchange.
Mining Stocks: It is one of the indirect ways to invest in gold. You can easily buy mining company stocks.
Physical Gold: It is simply for those who want a distinct type of investing experience. You can easily purchase real gold in the form of gold coins
Silver trading: Silver is one of the shiny metal with unique characteristics. Stockholder purchase silver for the variety of reasons but the most important reasons are:
- Risk Mitigation
- Industrial strength in the global economy
- Speculate on Diminishing supply
- Speculate on Investment demand
Risk Mitigation: most investors like to invest in Silver as it provides protection during the time of economic crisis.
Silver is a very important industrial metal. Thus an increase in the strength of the global economy will lead to a sharp rise in the prices of Silver.
There are two different ways of investing in Silver:
- Silver Bullion: It is one of the direct ways of investing in silver, silver bullion is normally bars or silver coins. The physical Silver requires a secure storage facility.
2. Silver Futures: Futures are the derivative contracts that are traded on an exchange. The futures contracts provide several benefits, such as higher leverage and lower margin requirements.
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