How To Trade Gold and Silver?

How To Trade Gold and Silver?

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From the Incas until the time of King Midas, from despotic rulers to the notorious pirates - silver and gold have been considered precious by humans for thousands of years. The first use of gold in coins was recorded in a period dating back to 600 BC, and over the years these precious metals have become increasingly important as investments. In this article, we will explain how you can invest in gold and silver prices through CFD trading and discuss some of the factors that affect the market. are you ready? Let's get started.

In the past, if you want to invest in precious metals, you have already purchased and stored. If you want to make big investments, you need a big and safe place to store them. However, these days, many people from all over the world are investing in gold and silver prices through CFDs, from anywhere and anytime they choose. How does this work? Well, CFD means CFD, and this type of trading enables you to invest in the price of a certain precious metal without actually owning it. In trading CFDs, you buy "contracts". For example, when currencies trade against gold, one "contract" is the price of one ounce of gold. 

Remember: When you trade gold or silver in iFOREX in the form of CFDs, you can benefit from any price change - rise or fall. If you think the precious metal price will go up, choose 'Buy' (Buy Deal). If you think prices will go down, choose 'Sell'.

Trading with leverage

This is a convenient time to discuss leverage - a wonderful tool that enables you to maximize your investment potential by maximizing your buying power. Are you confused? Here's a quick example. The maximum leverage for gold and silver is 1: 400, so if you invest an actual $ 200 in gold, with a leverage of 1: 400, it will be $ 80,000 as a buying power.

Factors affecting gold prices and other precious metals

There are many factors that affect gold and silver prices. As with any tradable financial instrument, supply and demand in the market is the basis, but there are also several other factors. Here are some possible examples:

  • Use in reserves of central banks to be used in reserves of central banks
  • The level of confidence in global markets is the level of confidence in global markets
  • Geopolitical factors geopolitical factors
  • The value of the US dollar The value of the US dollar
  • Change in the demand for jewels and jewelry
  • Use in industry and technology Use in industry and technology
  • Discovering New Mining Mines Discovering new mining mines

It is important to remember that, unlike other commodities, gold is often used by central banks to diversify their reserves. So, when a big country like China decides to increase its gold reserves, it is likely to affect the market.

Trading of precious metals contracts against differences in other financial instruments

At iFOREX, you can invest in a wide range of CFD tools including stocks, indices, currencies, and commodities. So, what is the difference between trading precious metals and other CFDs? The following is a quick comparison between gold and silver versus CFDs.