A commodity is defined as a raw material or primary agricultural product that can be bought and sold, such as copper or coffee.
Although there are many commodities for a trader to buy and sell nothing quite grabs the attention of a trader than precious metals. There are many factors that influence the price of a precious metal. These can range from rarity, its application in electronics and jewellery and most importantly how the metals value has been viewed historically.
For example during times of market instability everyone rushes to Gold. Historically gold has always been seen a safe haven and generally holds its value or even rises when other markets fall.
There are 4 main precious metals available to for the retail trader which are listed below.
For thousands of years gold has been a symbol of wealth and this is no different today. Gold is seen as safe haven commodity during financial instability. Gold is bought and sold by investors but also presents many opportunities for medium to short term traders. It is used in electronics as well as its traditional use as jewellery. The main gold producing countries are Indonesia, China, the U.S, South Africa, Australia, Russia and Canada.
Trade gold with Plus500 and receive £20 with no deposit required.
As with Gold, Silver has been mined and traded for thousands of years. Initially it was used primarily as a means of making coins, but now it is used in such things as electronics, jewellery and photography. It is the most conductive of the precious metals on this list and therefore its value is likely to increase in the long term. This is due to the increase in demand for electronics and the worlds becomes more connected. The main silver producing countries are Mexico, China and Peru.
Trade silver with Plus500 and receive £20 with no deposit required.
Platinum was first discovered in South Africa in 1924. It is is used in electronics, cars and jewellery. Over half of all platinum is used in catalytic converters for diesel engines. It is sought after in the jewellery industry due to its similarity in look to silver but does not tarnish as easily. Platinum is highly sought after due to its rarity. The main platinum producing countries are South Africa, Russia and Zimbabwe.
Trade platinum with Plus500 and receive £20 with no deposit required.
Palladium is one of the most rarest metals in the world and is currently only found in South Africa and Russia. It has similar properties to Platinum but has a lower melting point due to it being less dense. The properties of Palladium make it ideal for the use in fuel cells. As the world starts to move away from petrol to electric powered vehicles the scarcity of Palladium makes it an attractive investment over the next 10-20 years.
Trade Palladium with Plus500 and receive £20 with no deposit required.