Investing in precious metals has always been considered by most traders as an extremely effective defense against any market crisis or inflation.
CFDs on XAUEUR (Gold vs EUR)
By virtue of this Trader Trust adds to its wide range of trading tools the new investment option that gives traders the possibility of being able to trade gold vs EUR.
From now on it will be possible to implement extremely advantageous trading strategies thanks to this brand new tool offered by Trader Trust, decide which type of operation can be more suited to your trading style and Open short or long positions of gold against the Euro based on the fluctuations of the price.
Characteristics of gold on the market
Being considered by investors the precious metal par excellence, gold turns out to be an investment whose objective is a concrete protection of assets being able to withstand any type of crisis without suffering significant fluctuations in the price.
Although classified as a “commodity”, gold has market properties that are more common to currencies.
As gold does not have a considerable use in the metal industry, it is not considered as a common raw material, but unlike currencies it is not influenced by the country of origin.
The fluctuation in the price of gold is in close correlation with the macroeconomic conditions present in the United States of America which depend on the purchasing power of the US dollar, changes in interest rates, high levels of risk aversion.
Other factors that could cause changes (albeit not substantial) in the price of gold may include the demand for gold in the technology sector, luxury goods and production volume resulting from mining.
In addition to the investments inherent in the purchase and sale of gold, with Trader Trust it is also possible to opt for the use of the remaining Precious Metals existing on the market.
Precious metals with Trader Tust
The metal having various uses in the field of technology, medicine and electrical appliances of common and industrial use, silver considered both an industrial metal and an excellent store of value, present a fluctuation in prices deriving from the supply and demand of the sectors just listed.
Its price is higher than gold and silver, being a much rarer metal in nature.
Its extraction is constantly decreasing and its price varies according to its use in the production of catalysts, jewelry, information technology, etc.
Metal used in many production processes, including solar panels, electronics, medicine.
Market characteristics of Precious Metals
The main characteristics that distinguish them from other types of investments are:
- Extreme liquidity.
They can be sold and traded quickly when immediate liquidity is needed.
- Resistance to market changes.
Although market crises, inflation or geopolitical crises may occur, the price of precious metals remains virtually unchanged.
- Fund safe.
Investing in precious metals by diversifying the portfolio turns out to be a more than valid strategy to preserve one’s wealth, a sort of insurance against possible market crises.