Which physical investment refers to investors in the precious metals market is optimistic about the situation, the low buy high sell earn the difference. It can also be taken as a hedging instrument not optimistic about the economic prospects in order to achieve the preservation and appreciation of assets.
Electronic trading refers to the trading of gold, silver and other precious metals market fluctuations, to determine the buy or sell, such transactions are generally leveraged, you can use a smaller cost to take a larger return.
With the aggravating threat of inflation, the turmoil in the global economic situation and the outbreak of the global financial crisis, the investment demand for precious metals with hedging function shows a trend of explosive growth. Due to the high cash value and hedging of precious metals, it is able to withstand the currency fluctuations and rising prices brought by inflation.
Gold is a kind of precious metal, which is not only an important raw material for making jewelry and coins, but also an important way for the country to reserve important reserves. As an investment product, the value of gold is relatively stable, so it is often used as a tool for hedging.It is reflected in the market as the gold price is always opposite to the stock market.When faced with huge economic fluctuations, the stock market and so on When the investment market is in a landslide, people tend to buy gold to avoid financial risks, so gold prices rise.
As a kind of precious metal, silver has irreplaceable characteristics in large-scale industrial application and production of jewelry and silver products. Being widely used in the electronics industry and as a photographic photosensitive material, its price is much more volatile than many other metals.
Gold purchasers, sellers, sell and repurchase the same number of contracts as the previous contract by the expiration of the contract, ie liquidate without actually paying real money. The profit or loss per transaction equals two opposite directions Contracts trading margin. Gold contract transactions only 1% of the transaction amount of the deposit as an investment cost, with greater leverage, a small amount of funds to promote large transactions.
Precious metals investment characteristics
- No matter how the price of gold changes, because of its high intrinsic value, there is always a certain degree of hedging and liquidity. In the long run, gold has the function of resisting inflation.
- Any regional stock market may be manipulated, but the gold market will not happen. The gold market is a global investment market where global investors trade in a single product at the same price. Gold trading volume is huge, the daily trading volume of more than 20 trillion US dollars, there is no consortium has the power to manipulate the gold market, the transaction is more standardized, gold investors equivalent to access to huge investment protection. For each stock and futures, there are one or a few bookmakers who stop there. The price trend mainly depends on the bookmakers. Small and medium-sized investors are in a weak and passive position in the competition with the bookmakers.
- Seventy-five percent of the world's silver supply is derived from copper, lead and zinc mining. Because of this characteristic, the silver mineral will not be affected by the price change of silver, but will be affected by the price of other industrial metals. Historically, silver will perform much better than gold when it performs well.
- One of the most important factors in the silver market is individual investors. This major buyer group estimates 73 million ounces of silver are needed in 2005. Obviously, some people think the outlook for silver is very bullish.