If you’re reading this, no doubt you’re somewhat familiar with precious metals trading, which unlike paper currency hold intrinsic value. An ounce of gold remains an ounce of gold, and that fact is not dependent on geographic location.
While the focus of this article is the international markets of gold and silver (which is by and far the most active part of the market), the number of precious metals traded include: Platinum, Rhodium, Gold, Iridium, Osmium, Palladium, Rhenium, Ruthenium, Germanium, Beryllium, Silver, Gallium, Indium, Tellurium, Mercury, Bismuth.
Many are aware of the substantial speculative nature of this market, and how the price can experience extreme highs and lows in a short period of time. Based on these fluctuations, it’s possible for the savvy international precious metals trader to profit, since this market does not require physical possession of the precious metals, they can exist completely as numbers on a balance sheet, in this case a digital balance sheet.
Reasons the International Precious Metals Market Is Exploding
Unlike like paper currency, precious metals have an intrinsic value and can be used as protection against depreciation and political turmoil. Gold and silver, not being directly linked to any specific world currency, can be traded globally quickly and easily. Gold has proven it has the strength to rise above political turmoil, natural disasters, and weak central banks; because of this it has become more and more valuable over the past decade.
International precious metals maintain their value without dependence on the fiscal profits or lack thereof, of a particular company, country, or regime. While a company, or government could be here today and vanish tomorrow, those who own international precious metals won’t have the worry of catastrophic financial loss since their metals have always had and will always retain an intrinsic value that is respected worldwide.
International precious metals, because they have intrinsic value, allow a gold and silver market to exist globally, thus allowing the liquidation or acquisition of the metal (on paper) to occur almost instantly.
This is not to say precious metals don’t have inherent disadvantages, i.e., low rate of return. As compared to penny stocks or Forex (which come with associated risks), international precious metals fluctuate in price over longer periods of time; thus resulting in lower rates of return, but an established protection against inflation.
The astute observer of precious metals will notice cycles of appreciation often associated with the depreciation of paper money/currency. However during those turbulent trading sessions, the astute investor should be aware that both gold and silver may experience price corrections. For this reason it is never prudent to place all your investment dollars into one financial medium, rather to spread the risk across multiple areas for maximum protection.
Gold and silver, or any international precious metal, are key players in the world’s financial markets. Since these metals can be traded without physical possession, the past several decades have allowed the trading of gold and silver to blossom. If you’re someone who appreciates a fast-paced trading session similar to Forex in speed and implementation, then the international precious metals market deserves a closer look.