Gold Silver Trading

Last Updated on Monday, 06 April 2009 19:21 Written by Sunny John Monday, 06 April 2009 19:20

Precious Metals Trading:
 

As metals trading has become more widespread, some investors are moving away from the more traditional trading to precious metals and onto commodities such as Gold, Silver, Platinum, Copper, Lead, tin, aluminum, nickel etc.. There is increasing demand for them in the economy as they are becoming more widely used in sectors.

Since the turn of the twentieth century when gold was pegged to currencies as a standard of foreign exchange dealing, traders have been fascinated by the precious metals.

Gold has traditionally tended to move in the opposite direction to the dollar, but is this still the case in today′s volatile market? What affect does this have on silver, platinum and palladium.

The price of gold refers to its price per ounce in USD. For example, if the price is 612.97, it means that an ounce of gold is traded for USD 612.97. Similarly, the price of silver as well refers to its price per ounce in USD. For example, if the price is 11.853, it means that an ounce of silver is traded for USD 11.853. There are several weighing methods in the precious metals and stones markets, where the most common is TROY (a TROY ounce equals approximately 31.10 grams; where an AV ounce equals approximately 28.35 grams).
 

The trading with gold and silver rates is performed as it is done same with foreign currencies, by the OTC method (over the counter method). That means that the trading is performed directly between the two involved parties, and not via a third party which consolidates the trade (such as an exchange market).

Gold Trading and Silver trading is becoming popular now a days because trading with gold or silver rates or in commodities futures trading, as with foreign currency rates, is non-delivery trading, which does not require the "physical" purchase or sale of the "commodity".

 

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