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The benefits of trading metals with Amelok

  • Online gold and silver trading without requotes
  • Interesting investment tool besides forex currencies
  • Premium market
  • Selection of a long/short position in the curve of the market conjuncture

Precious metals trading

Precious metals, as well as crude oil, copper and petroleum products are commodities in the extractive industry, which play an important role in the commodity and other commodity markets. The contracts for which precious metals are sold include futures, spot contracts and forwards (forwards).

The mediator that conducts transactions between buyers and sellers of futures contracts is the futures or commodities market. Investors around the world are provided with about 50 major commodity markets. On them the main assets traded are gold, silver, platinum and palladium. High demand for these metals is due to the high price of them and the resistance of these metals to chemical and atmospheric influences. Despite the fact that Asia is considered the largest precious metals market worldwide (the largest consumers of precious metals are China, India and Singapore), the main players in this market are European and American corporations, and the largest companies producing precious metals are located in Canada and Germany.

The futures market, where, in addition to currencies and stock indices, gold and other precious metals are also traded, operates around the clock, 5 days a week. As a rule, precious metals are traded in two ways: in the form of spot contracts and in the form of futures contracts. The conclusion of spot contracts involves the physical supply of these goods and their delivery on a certain day (usually on the second working day after the conclusion of the transaction). Futures are standardized contracts in which both counterparties - the seller and the buyer - agree to sell the precious metal in a certain quantity, of a certain quality and at a fixed price (futures price) with the delivery date and payment on the day in the future (delivery date). Futures trading doesn't involve physical possession of raw materials and is carried out online through a trading platform.

Trade in gold and precious metals

Gold, platinum, palladium and silver are among the most popular precious metals. A large volume of trading in these metals is explained by the constant demand for them, regardless of the state of the economy. Over the past few decades, the volume of online trading in precious metals and their physical possession as a long-term investment has increased significantly. Precious metals also provide an opportunity to make profits for short-term investors, because derivatives and exchange-traded contracts do not require large capital for trading, and they can be easily traded on the ups and downs of prices through online platforms.

Unlike other commodities, the prices of which depend on the volume of production and consumption, gold prices are subject to other laws: they are sensitive to political events, which makes gold a protective tool during market uncertainty. In addition to gold, platinum, palladium and silver are valuable metals. Investors endow them with the qualities of protection and saving money during monetary uncertainty.

There are several factors that influence price spikes and can cause an increase in volatility in the precious metals market. One of the main factors is global financial institutions, whose investments are speculative in nature and can lead to both an increase and a fall in prices. Another such factor is considered the behavior of end users, for the most part - jewelry buyers: the demand for jewelry leads to an increase in prices on the precious metals markets. The economy also affects market prices. In a steadily developing global economy, welfare is directly related to the demand for jewelry made of gold and other precious metals: if investors seek to “withdraw” from high-risk investments, the prices of some precious metals go down, and the rest go up. Last but not least, changes in demand for some other financial assets, other than precious metals, also contribute to price changes.