Trade and invest in silver

Everyone’s heard of the opportunities offered by gold trading, but what about silver? To answer this interesting question, we offer you the opportunity to learn here in this article how to invest in the precious metal silver and how to trade it online. With this information, you will be able to start accomplishing profits while buying and selling silver on the major markets.

Before continuing on the subject, it is important to understand how the majority of the silver production is used throughout the world. In fact, around 44% of the total production is used by the new technologies industry, in particular in the manufacture of laptops, digital cameras or MP3 players. On the contrary to what many think, the jewellery sector is not the largest consumer, it only uses 30% of the total silver production.

As with gold, silver is priced on the cash market and by mutual agreement. It is therefore the supply and demand which determines its value on the major financial markets.

Although it is possible of trade silver on the Forex, it can also be found in the form of futures and options on several international markets such as the NYMEX or New York Mercantile Exchange, as well as the TCE or Tokyo Commodity Exchange. With regard to the European Silver Exchange market, there exists the possibility of traditional trading, but also warrants, certificates and turbos are available on the Euronext market.

To understand how the silver price is fixed we need to study the various elements taken into account in the price calculation. They particularly relate to the industrial requirements and the production volume of the mine extractions. However the silver price is also in partial correlation with the price of gold, these two assets share the status of safe refuge values, especially during the more uncertain economical periods.

Although the historic silver price has marked a strong fall during the preceding years (since 2008), we are currently witnessing a return in strength of the precious metals on the markets. In fact, silver, just like gold, is currently beating records, benefitting from the uncertain climate of the world economy. It is therefore more than ever the moment to invest in this truly profitable asset so often forgotten by traders.

 

Investing in silver:

As with gold or platinum, silver is one of the commodities that can be profitable to trade using CFDs. By starting to speculate on this asset you can make short term profits by benefitting from its high volatility.

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