How to start trading Gold and Silver with OANDA? Table of Contents

How to start investing in Gold and Silver with OANDA?

  1. <Go to OANDA’s Official Website;
  2. Click on “Start Trading” button to open a live/demo trading account for free;
  3. Receive account information to log in to OANDA’s client portal;
  4. Make a deposit to your account and download OANDA’s trading platforms;
  5. Log in to OANDA’s trading platform and start trading “GOLD”.

Precious Metals offered by OANDA include Gold, Silver, and Copper.

Along with the above precious metals, you can also trade Forex currency pairs, Stocks, Stock Indices, Commodities, and also Cryptocurrencies in your trading account.

For more information about OANDA and the available financial markets, go to OANDA’s Official Website

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Why invest in Gold?

Individuals, private companies, and central banks of various countries all recognize the value of gold as an asset and buy it on a large scale.

In addition, gold jewelry, some industrial products, and dental treatment materials all require the use of gold.

In fact, there is a greater demand for gold in the above-mentioned processing fields, and producers will purchase in large quantities.

1. Assets and metals-double-sided gold

Gold can be bought and sold as an asset or used for processing as a metal.

When used as an asset, it is made into gold bars, etc., for various individuals or organizations to purchase.

As a raw material, it is most often processed into jewelry.

Now, in almost all countries, gold can be freely traded.

People from all walks of life buy and sell gold for various purposes. The game of demand and supply determines the price of gold.

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2. Gold quantity is limited

The surface gold reserves can fill about 3.5 50-meter standard swimming pools.

How much gold is there in the world? Throughout history, the total amount of gold that people have excavated and used is 171,300 tons.

The density of gold is 19.3 tons per cubic meter, so 171,300 tons ÷ 19.3 = 8,875 cubic meters.

If the volume is converted into a 50-meter-long, 25-meter-wide, and 2-meter-deep Olympic swimming pool (approximately 2500 cubic meters), about 3.5 can be filled.

These are called “surface gold stocks”.

Even if the world’s gold is collected, the total amount is no more than 3.5 swimming pools, which highlights the preciousness of gold over other materials! Have you ever seen such an advertising leaflet for the gold “recycled gold jewelry” used by the circle? When the price of gold rises, jewelry will be resold to cash.

There are also people who sell old models in exchange for other models of jewelry.

Gold bars or coins held as investments will be sold when funds are urgently needed or when other investments are desired.

That is, part of the total amount of gold on the surface will be sold by the holder due to various conditions and used for other purposes.

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3. The annual supply of gold is about 4,500 tons

Every year, people also extract new gold from mines.

In 2011 (old-time), the newly produced gold was about 2,800 tons.

At the same time, about 1,660 tons of gold were sold from surface reserves and supplied for new purposes.

Together, the annual supply of gold is about 4,500 tons.

By whom and for what purpose was the gold acquired?

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4. Today’s investment needs are attracting attention

In 2011, the demand for gold was 4,500 tons, most of which came from jewelry, about 1970 tons, accounting for 44%, and the main buying force was jewelry manufacturers.

The second is an investment, about 1,200 tons, accounting for 27%.

As the price of gold continues to rise, investment demand has also risen year by year, which is eye-catching.

The total demand for jewelry and investment accounts for 70%.

It is again the raw material for processed industrial products, about 800 tons, accounting for 18%.

What makes Gold different from other precious metals?

5. Nearly 80% of the demand for gold comes from jewelry and investment

The most important feature of the gold demand structure is: gold applied to the industrial sector only accounts for 20% of the total; jewelry, investment, etc., such “dispensable” demand But accounted for an overwhelming majority.

Unlike gold, platinum, palladium, and other platinum-based precious metals, as well as silver, account for 8% of the demand for industrial use.

Which country/industry has the biggest Gold demand?

Gold is priced in U.S. dollars

Commonly seen in newspapers and magazines, such as “the price of gold exceeds US$1,800”, they often refer to the price of London gold.

The price of London gold refers to the price of gold converted into US dollars, which is the standard for global gold trading.

The price of gold converted into U.S. dollars refers to the exchange rate between gold and U.S. dollars, that is, the exchange rate.

For example, the exchange rate of the U.S. dollar to the Japanese yen refers to how much Japanese yen is equivalent to one U.S. dollar. Then the exchange rate of gold to the US dollar refers to how many US dollars an ounce of gold is equivalent to.

An ounce is a unique unit for measuring precious metals, which is 31.1035 grams.

That is the exchange rate, or price, at which about 31 grams of gold can be converted into U.S. dollars.

For example, the current price of gold is $1,700, which means that to get 1 ounce of gold, you need to pay $1,700.

Usually, precious metals, led by gold, are priced at the price of 1 ounce against the US dollar.

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