Precious Metals

Precious metals refer to metals with high economic value and are considered rare items. Due to their rarity and the fact that they can be used as raw materials for many industrial productions, precious metals, including gold and silver, are recognized as the items with the highest investment value. The spot market precious metal transactions provided by AB to investors do not require the actual holding of items for delivery. Just like the spot foreign exchange over-the-counter market transactions, precious metals can be bought or sold in the form of relative quotes in US dollars or euros through margin.

Trade precious metals at UACTCTK

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Gold and precious metals trading market

Gold and other precious metals, crude oil, copper, gasoline and other commodities occupy an important position in the commodity market. They are all contract-traded commodities. Precious metal contracts include futures, spot, forward and options. The intermediary for trading futures contracts is a futures exchange or futures market. Asia is the world's largest precious metal trading market (China, India and Singapore are the main traders of these commodities), and commodity trading is mainly dominated by European and American companies. The largest precious metal companies are in Canada and Germany. In addition to currency pairs, indices, gold and other commodities, other precious metals are also active in the futures trading market. Trading is available 24 hours a day except weekends. Generally speaking, there are two ways to trade precious metals: spot contracts and futures contracts. Spot contracts involve spot buying and selling, payment and delivery, and futures are standard contracts, where both parties agree to a certain amount of precious metals at a price agreed upon by the buyer and seller (called the futures price) for delivery and payment on a future date (called the delivery date). Futures trading refers to the actual ownership of the goods bought and sold without online trading.

Trade Gold and Precious Metals

The most frequently traded precious metals are gold, platinum, palladium and silver, and the high trading volume of these commodities is due to their inherent value that they retain regardless of economic conditions. In recent decades, the preference for online purchases and even physical ownership of precious metals as long-term investment commodities has increased significantly. Trading precious metals also provides opportunities for those interested in short-term investments, as derivatives and exchange-traded contracts are a capital-intensive and simple way to profit from price movements. Unlike most commodities that are mainly dependent on production and consumption levels, gold trading prices are not: they fluctuate with political changes, allowing gold to play a role as a hedge against other market risks in uncertain times. Similar to gold, platinum, palladium and silver are also valuable assets and are seen by investors as an important means of preserving value in times of monetary uncertainty. There are several factors that influence price fluctuations and can cause fluctuations in the precious metals market. One of the most important factors is global financial institutions, whose investments are speculative in nature and can cause upward or downward price movements. Another factor that affects the market is the end-user trend, mainly triggered by jewelry buyers: the demand for jewelry drives up the precious metals market prices. The economy also has an impact on market prices. In the world's well-performing economies, wealth levels are directly correlated to demand for gold and other precious metal jewelry: When investors look for riskier investment options, the prices of some precious metals fall, while others rise. And changes in demand for financial assets other than precious metals also contribute to price fluctuations.

Gold and precious metals trading today

Since the 1970s, in addition to currency pairs (forex) trading, precious metals have become the most popular investment commodity, which is a good commodity for portfolio risk management in times of inflation or economic/political uncertainty. Long-term investment in gold and other precious metals is a popular investment method all over the world. Futures contracts are so-called derivative contracts, meaning that their value is derived from the performance of the underlying asset. One of the main purposes of investing in precious metal futures is risk mitigation: given the ability of the contract buyer and seller to fix a price or interest rate in advance for future transactions, they can both insure against drastic or sudden price movements that could lead to increased losses. Trading in precious metals can be said to be two-way: if the market is expected to rise (uptrend) trading can be done by buying a futures contract (long) and exiting the trade by selling it; while if there is an expectation of a downward movement (downtrend), trading can be done by selling a futures contract (short) and exiting the trade by buying the contract. It is also possible to trade multiple futures contracts, which includes making several separate entries and exits, i.e., entering the contract at different prices and exiting at one price, or vice versa. The ability to trade on both sides allows investors to make profits regardless of whether the market moves upward or downward.

Advantages of precious metals trading