Since the beginning of time gold and silver have been well known as valuable, the reason for their high value due to their rarity, with copper, platinum and palladium following close behind. These metals are expensive, difficult to mine, and appreciated by industries and investors alike.
In today’s trading world, it is possible to gain profits from a commodity, such as gold, without having to physically own the metal.
At Friedberg Direct you can easily trade gold, platinum and other precious metals online. Try metals trading with your leading regulated broker and enjoy the following benefits.
- Trade gold, platinum, palladium, silver and copper with competitive spreads
- Make bigger trades with leverage
- Trade on the popular MetaTrader 4 or MetaTrader 5 platforms
- Or trade vanilla options on AvaOptions
- Trade whichever way you think the market will go – long or short
- Get 24/5 live client support in your language
Start trading the dynamic precious metal markets with Friedberg Direct and enjoy competitive spreads and leverage as well as the benefits of trading with a regulated, Canadian broker!
Trade Precious Metals with Friedberg Direct
Which precious metals are best suited for your trading style and market knowledge? Why are they so volatile? Click on any of our links to read more on how they work and change in the markets.
Advantages of Trading Precious Metals with Friedberg Direct
Trading precious metals with Friedberg Direct can be beneficial in several ways:
- Short selling, or “going short” is a way for a trader to profit on decreasing prices. This process allows one to trade and benefit when the markets are down. Contrary to physical metals trading, trading them as CFDs, provides greater flexibility and liquidity, which allows the trader to go short with less risks compared to trading the actual metals.
- Leverage allows a trader to open a larger position with minimal investment, meaning the trader can build up and control larger sums of money. Leverage can magnify your potential profits and at the same time can magnify your losses.
Friedberg Direct’s SSL secured online trading platform helps prevent potential hackers and theft.
What are Precious Metals
Precious metals are defined by their rarity, and their use as an investment instrument (refers to any manner in which a person or business can invest with the intention to ultimately grow their equity). The term ‘precious metals’ refer to the group of metals that are known to be unique and highly valuable.
Factors which have historically affected the price of gold and other precious metals have been economic and financial; and with drastic world events taking place, their quality as a safe-haven and an asset for retaining wealth.
Precious metals are rare metals that have desired characteristics of unique beauty and are used commonly in jewellery pieces. These metals do not rust or decay; therefore, they can last for many years.
Some unique uses for silver, for example, include the manufacturing of solar energy panels, medical and surgical equipment, everyday electronics, cell phones, cameras, mirrors and many other items. Gold is often desired for jewellery, electronics and orthodontal items, since it is pliable and conducts electricity and can merge well with other metals. Popular items such as awards and medals are also made of gold.
Factors Influencing Precious Metal Trading
Several distinct factors come into play when analyzing the prices of precious metals:
- Supply – can be affected by a decline in production and political instability.
- Demand – mainly comes from jewellery, use in everyday technological products, and for investment purposes
- Market Volatility – Precious metals have often been used as a safe haven investment when markets are unpredictable
- Currency strength – Most precious metals are priced in USD, and thus it would be wise to monitor the dollar index in order to better forecast the price dynamics.
Investing in precious metals is a popular way of portfolio diversification. There are several options when looking to invest starting with coins and bullions. These usually have a very low margin and trade close to the metal’s current market price.
Mining stocks belonging to publicly traded companies give an investor the opportunity to buy them at the production level.
As global economies improve, precious metal prices seem to have taken a hit since fewer investors feel the need to look for a safe haven. However, when times are tough people globally go looking for the safe bet of a precious metal bar.
As a client of Friedberg Direct you will receive regular market reports and live streaming news updates as well as all the analysis of the latest moves in the metals markets. Don’t forget to check out the CFD Rollover dates to know when the current precious metals contracts expire.
How Friedberg Direct Can Help
Join Friedberg Direct for as little as $250 and start trading gold and other metals today. You’ll get access to a range of advantages and benefits that are exclusive to Friedberg Direct clients.
We offer a range of intuitive and customizable platforms, so you are guaranteed to find a trading environment that suits your style. You can trade gold and other commodities on the same screen as your forex trades, buy and sell directly from live charts, and set stops and limits in order to protect your capital.
Friedberg Direct also offers award-winning customer support, in more than 15 languages, whenever the markets are open.
The best way to trade precious metals in 4 easy steps
- Open a trading account with Friedberg Direct
- Fund your account
- Choose precious metals to trade
- Start Trading
Metals Trading and Forex
Metals trading at Friedberg Direct is easy to understand, especially if you have already gained some experience with the forex market. Adding forex to your portfolio diversifies it and allows you to build strategies based on the correlation between assets (e.g. precious metals and currencies). You can even hedge you precious metals positions with FX options trading.
Get started with gold and metals trading with Friedberg Direct, and enjoy competitive spreads and leverage, as well as the benefits of trading with a regulated, award-winning broker!
Main Precious metals FAQ
What are the advantages of trading precious metals?
One of the top advantages is the easy liquidity provided by precious metals. This keeps the market healthy. Another reason is the ever increasing demand for precious metals. As demand continues to increase it supports gains in price as well. Of course trading in precious metals is a good way to diversify if you typically trade in stocks or currencies. Perhaps the greatest advantage of trading in precious metals though is the profit potential they offer traders of all experience levels.
Which precious metal is the best to trade?
Gold, silver, platinum, palladium. Which of these precious metals is the best to trade? There are advantages to each. Of course gold is the most popular of the precious metals, but its sister metal silver is close in popularity and often performs better than gold thanks to its dual nature as a store of value and an industrial metal. Platinum isn’t considered in the same class as gold and silver for investing, but it can be a good choice for traders, especially when it begins to trend. Finally there is palladium, which actually tracks platinum prices quite well, so traders can simply choose one or the other in most cases.
What factors influence precious metal prices?
There are two factors that are the primary drivers in the prices of all precious metals. Those two factors are supply and demand. In many cases new traders only consider the demand side of this equation, but that can definitely lead to some unexpected price moves when supplies are either cut short suddenly or increased rapidly. In the case of silver, platinum, and palladium there can also be changes in industrial demand that will impact price. Any change in automobile production is likely to see all three of these industrial precious metals change price dramatically.
These FAQs, comments/analysis do not take into consideration your individual personal circumstances and trading objectives. Therefore, they should not be considered as a personal recommendation or investment advice. They are intended for educational purposes only. Past performance is not indicative of future results. There is no guarantee that the contents or instructions will result in profits or not result in losses.