Traders, investors, and bankers alike are drawn to the appeal of spot metals. Learn all you need to know about precious metals, including the numerous varieties and how you may take a position.
Investing in metals may be done in a variety of ways. These are typically labelled as ‘precious’ or ‘base’. The most well-known precious metals are gold, silver, platinum and palladium, whereas the most well-known base metals are copper, lead, nickel and zinc.
Precious metals are rare, organically occurring, metallic elementals that have an intrinsic worth. They don’t normally oxidise or corrode, and they don’t naturally tarnish. Gold, silver, palladium, and platinum are the principal precious metals, and they are all used in jewellery, but they also have a variety of other uses.
Precious metals have been used for cash and jewellery throughout human history, and more recently, metals like gold are employed in technology such iPhones and computer software. Some precious metals are viewed as solid reservoirs of wealth during times of market turmoil – known as safe havens.
Base metals are common metals that will naturally oxidise, corrode or tarnish. Examples include copper, lead, nickel and zinc. Copper pipes and nichrome, a nickel-chromium alloy, are both made from these metals, as are a variety of other items.
Copper is also a popular sculptural material, with icons such the Statue of Liberty deriving its green tint from oxidised copper.
Four precious metals are widely accepted for trading: gold, silver, platinum, and palladium. These items have a range of applications, not just as a historical deposit of money or for their usage in jewellery, but also in industry, electronics, pharmaceuticals and as alloys.
Gold has been utilised in the manufacturing of luxury products for millennia. Today gold is used in jewellery, ornamentation and – because to its conductivity – the cellphones and computers that we all use everyday. It’s also the safe-haven asset of choice for many investors during times of market instability.
Since it's conductive, anti-microbial, and malleable, silver is a common metal in the manufacturing business. These provide silver a range of uses, including in batteries, dentistry and water filtration.
Study silver trading and investment strategies.
Platinum Platinum is utilised in jewellery and dental work because of its purity. Platinum and cobalt are commonly used as an alloy to manufacture magnets, for example. It’s also utilised in various chemotherapy medications, including those that treat testicular and ovarian carcinoma, lung cancer and lymphomas.
As a congener of platinum, palladium has a similar chemical makeup and function to platinum. Catalytic converters, which transform toxic gases like carbon monoxide into less damaging nitrogen, carbon dioxide, or water vapour, account for more than half of palladium's use in automotive applications.
Trading precious metals involve using financial derivatives like spread bets and CFDs to speculate on price movements. Precious metal futures, spot prices, and options are all available to you when you trade with our firm to trade.
You’ll be trading on these prices with spread bets and CFDs, so you won’t ever need to take physical delivery of the underlying assets - such as gold or silver.
Precious metals as a form of investment
Investing in commodity stocks and exchange-traded funds is an alternative to spread betting and CFD speculating (ETFs).
Stocks help you obtain indirect exposure to precious metals by buying shares in the firms engaged in their production and consumption. You may trade a wide range of assets using an exchange-traded fund (ETF), and commodity ETFs, such as a gold ETF, are set up to closely track the price of that metal on the underlying market.
All precious metals, including gold, silver, platinum, and palladium, are highly sought for by dealers and investors alike.
They are used in a variety of ways, but are most frequently seen in high-end jewellery.
The price of precious metals is influenced by a variety of variables, including supply and demand, economic instability, and interest rates.
Numerous market participants view precious metals – notably gold, which is regarded as a safe haven – as an excellent investment.
Spread bets and CFDs allow you to speculate on precious metals prices, or you may invest directly in the metals.