Everything You Need To Know About Precious Metals

Precious metals have seen a large amount of attention in the previous year, due to economic changes in several countries, such as China, and the U.S.A. election which led to President Donald Trump’s victory. All of the events led ted tantamount of money flooding into the precious metals exchange-traded funds (ETFs).

First and foremost, Precious Metals are a classification of metals that are considered rare, and highly coveted for their economic value. Some metals that are included in the list are; the most famous one, gold, which is made famous with its dabbled history and rarity, the next one is silver, which is less rare than gold, but a notable agent in affecting currencies, and platinum, which is rarer than gold , but its price is more volatile than gold’s. Some types of precious metals are common on industrial schemes, metals such as iridium, which is commonly seen on satellite communication networks, and palladium, which is a big hit on electronics and chemical applications.

Metal ore
Close up of the shiny metal ore crystal structures.

How Can You Trade Precious Metals?

If you’re interested in precious metals, you can participate in its trading by buying the physical asset: What physical asset is the term used when referring to things that can be liquidated from a business in the event of default in order to pay off debts, purchasing future contracts, this refers to essentially the same thing as physical assets but in the future, or you can directly purchase shares from a company that is involved in the exploration and production of precious metals.

More Specific Ways on Purchasing Precious Metals

You can purchase precious metal in the form of bars and coins; this method is called Holding Bullion. This is most common with gold, traders can purchase a substantial amount of gold bars and coins that are typical carries a very low margin over spot prices but can be very difficult. Public mining companies are open to the thought of trading but are underperformed by several challenges such as high company debt, rising labor costs, and the pronounced environmental issues. The last and the most diverse on is the Exchange-Traded Funds or ETF, this option gives daily liquidity and low transaction costs.

The previous year has been a series of twists and turns for the precious metals, from the scandal regarding the manipulation of the gold market, the proposed rate hike by the Fed, and the new US administration under President Donald Trump. A lot of the same events are expected to run a modifying year, the administration of Trump proves that it can sway the market to its feet and not stop there, while the Fed’s hike is yet to be felt. But even with the bombardment of news that can potentially tarnish the precious metals, but they still have provided a better 2016, they also closed at substantially smooth figures providing a tailwind for this year.

 

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