Invest in Silver with SuperForex
Use SuperForex to get real-time silver prices, and trade CFDs, low spreads, and fast execution through SuperForex’s MetaTrader 4 platform.
Among all metals, silver may be the most versatile of its kind. As a precious metal, it has been a storehouse of currency and wealth for thousands of years, although its historically lower price has made it easier to obtain than gold (and therefore in greater demand); at the same time, it is also reflective of all metals The strongest one can reflect 95% of the light back, so it is very suitable as a backing for mirrors.
Silver is an excellent conductor of heat and electricity and has many uses in many industries. Example: Silver is widely used in electronic components such as automobiles, microwave ovens, TVs and circuit boards, and silver salts are also used to capture images in photography and X-rays. As a highly resonant material, it is also very suitable for making high-quality bells; American coins minted before 1965 were made of 90% silver at that time. You can try tapping to hear it yourself.
Invest in Silver with SuperForex
What drives the price of Silver market?
Silver investors need to pay close attention to a variety of driving factors, such as mining and production costs, investment, demand, industrial demand, energy costs and even jewelry demand. However, for traders with much shorter time periods, here are some of the most common topics that require attention.
- Supply and demand:
- It is estimated that industrial production accounts for more than 50% of silver demand, and it is still a popular choice for jewelry and silverware; due to the limited supply of silver, demand continues to increase, silver is bullish and there are good reasons to increase prices in the next few years; for destruction In this case, a large amount of silver supply is needed to enter the market to absorb this growing demand, but the current market seems unlikely. In addition, the impact of supply and demand also exists in a shorter time frame. If the strike temporarily suspends production of silver mines, the price of silver may soar. The announcement that silver has found another industrial use will also further increase the demand for silver.
- U.S. Dollar:
- Since XAGUSD is priced in U.S. dollars, the U.S. dollar is an important factor to consider behind the price of silver. Most of them have inverse correlations. Although it is not one of the cleanest correlations, it is certain that if the demand for silver falls, a surge in the dollar may put pressure on silver prices and cause silver prices to fall sharply; or , If the demand for silver is also rising, a fall in the dollar can support the price of silver or push it up.
- Economic data:
- A series of weak data in China may indicate that the total demand for industrial products is declining, thereby suppressing silver demand and prices; but the situation may be the opposite. If the global economy grows and consumption rises, the demand for industrial products and the price of silver may rise. Therefore, traders pay close attention to the macroeconomic data sets that can affect the price of silver.
Silver CFDs allow traders to speculate on markets that are bullish (up) or bearish (down). This is not easy to achieve for physical metals, because the transaction costs and time of physical metals are much higher.
Since CFDs originate from the underlying market (making them a form of derivatives), traders can use high leverage to reduce margin requirements and trade real-time market prices without owning the underlying market.
Why people prefer to invest in Silver?
- Long or short:
- Trading through long or short trading, traders are better able to trade according to potential trends, regardless of the direction, which is not common in the potential market for luxury goods.
- Hedging market risk:
- “Hedging” market risk means reducing its value. If traders want to temporarily reduce the risk without closing their positions, they can hedge. For example, investors hold physical silver and they intend to keep it for a few years, but they are worried that the price may be revised in the short term. In order to protect their profits, they decide to short the silver CFD that is equivalent to the physical silver they hold. In this way, if the price of silver falls, the profit of the silver CFD can offset the decline of physical silver during the same period, and the profit may be generated. The same technique can be used to hedge a silver ETF or a group of silver stocks whose prices are correlated to spot silver.
Another use is to hedge the silver CFD itself. For example, traders may be long 5 silver contracts, but want to reduce the risk during the weekend, so they short 5 silver contracts. By doing so, they effectively reduced the margin requirement to $0 and completely locked in the floating profit and loss of the transaction.
Invest in Silver with SuperForex
Why choose SuperForex to invest in Silver?
- Competitive spreads:
- Trading with low spreads from top liquidity providers.
- Trading with Expert Advisors:
- Use EA to trade silver with the power of automation.
- No dealing desk intervention:
- SuperForex does not provide requotes that interfere with your trading. SuperForex is here to facilitate your trading, not to hinder your trading.
- Multiple deposit currencies:
- Overseas investors can still use their domestic currency to trade with ASIC-regulated brokers.
Go to SuperForex Official Website
Please check SuperForex official website or contact the customer support with regard to the latest information and more accurate details.
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Please click "Introduction of SuperForex", if you want to know the details and the company information of SuperForex.
(Forex Broker)
Comment by Diletta
March 26, 2024
Awesome bonuses, good leverage. A few hiccups, but support rocks!