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  • Precious Metals

    What Are Precious Metals?

    Metals in trading are categorised into two groups; ferrous and non-ferrous. Ferrous metals are those that contain iron, have magnetic properties and are typically subject to corrosion. Ferrous metals include stainless and carbon steel as well as cast and wrought iron. Non-ferrous metals on the other hand, do not contain iron, have no magnetic properties and don’t corrode as quickly or easily as ferrous metals. Non-ferrous metals include tin, aluminium, lead, zinc and copper. Precious metals are also non-ferrous, and consist of gold, silver, platinum and palladium.

    How do you trade metals?

    In general, metals tend to be the subject of long-term trades, meaning they typically serve better as investments rather than day trading assets. In times of economic instability, some metals are looked on favourably by traders as a ‘safe haven’ asset, but they can also traded in much the same way as any other asset class during times of market volatility.

    What is gold?

    Gold is one of the most commonly-traded precious metals, and with good reason; gold has a number of applications in the electronics industry and continues to be a staple in luxury jewellery. Gold has garnered a ‘safe investment’ reputation, with prices typically maintaining a relative constancy through times of instability in other asset classes. As a result, new investors may steer towards gold as a secure investment, but it’s worth bearing in mind that gold prices are subject to the same economic influences, market sentiment and supply and demand as any other asset. So, if you’re looking into gold as an investment, make sure to first do your own research and analysis.

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