Trade Metals on SuperForex

SuperForex provides traders with easy cash CFD trading of crude oil, gold, silver and other commodities. Energy, precious metals and agricultural products are three major categories of commodities, and they are an important part of the global economy.

Trade gold with a very low margin of 500:1
You only need to pay a small part of the cost of physical gold or futures contracts, and you can trade at real-time gold prices.
Trade silver with a very low margin of 500:1
You can add silver to your trading watch list to observe its volatility; the leverage ratio is as high as 500:1.

Metal trading is said to have started around 43 AD, when the Romans invaded Britain and helped themselves obtain large amounts of copper and tin.
To this day, London is still considered the center of metal trading, and the London Metal Exchange (LME) has been its location since 1877.

Although metals are traded on exchanges around the world, the New York Mercantile Exchange (COMEX) is considered the main market for gold and silver futures.
Gold is the ultimate precious metal and has been used in jewelry and payment methods for thousands of years. Silver is also considered a precious metal, but its value is much cheaper, which makes it more useful as an industrial metal than as a store of wealth.

Since gold and silver are denominated in U.S. dollars, traders will also analyze the strength of the dollar’s weakness to help their metal trading. However, other factors are also at play. Historically, gold has been used as a hedge against inflation. This means that investors will buy gold when they are worried about rising inflation. With many central banks offering or considering negative interest rates, gold has once again attracted the attention of investors as a hedge against NIRP (Negative Interest Rate Policy).

Gold also attracts safe-haven capital flows, which means traders buy gold during periods of uncertainty.
For example, as the stock market began to roll back from historical highs, the price of gold rose in early 2020, and other safe-haven markets such as the yen and the Swiss franc also appreciated.

Although silver is often associated with gold, this is not always the case, and the two prices may be different. The volatility of silver prices is usually much greater than that of gold, which is why people say “gold is a holding and silver is a transaction”.

Invest in Gold and Silver through SuperForex

Why invest in Gold and Silver?

Gold is a rare metal and is often used as currency. Therefore, gold trading is very popular in history.

Trading gold is usually regarded as a hedging tool to hedge against economic, political or social legal currency crises, such as investment market decline, inflation, currency failure, war and social unrest.

Throughout history, gold is considered to be older than silver because of its scarcity, which also makes it more valuable.

The average price of gold in 2019 is approximately US$1,392.60, while the average price of silver in the same period is approximately US$16.19. In fact, the highest transaction price of silver was $117 in 1980, and it has been below $20 for most of the time since 1950, which pales in comparison with the all-time high of $1,920 set by gold in 2011. Since silver is lighter in volume, the demand in industry is also much greater.

As a wealth storage method, it is not as attractive as gold because of its higher storage cost relative to its price. Over time, investors prefer gold as a tool for wealth to fight inflation.
Although the trading price of silver is much lower, it is much more volatile in terms of percentages, so it is very attractive to traders. This is not to say that gold is not highly volatile, but of the two, silver It has a very big advantage in terms of volatility.

During turbulent times, both gold and silver will attract inflows of safe-haven funds, which will inevitably make them vulnerable to selling pressure when the market recovers. Therefore, investors should carefully analyze the supply and demand of metals to better assess their long-term trends.

Overall, gold and silver are positively correlated, partly because they are negatively correlated with the U.S. dollar. In other words, they will not always be positively correlated, and precious metals may sometimes diverge, so it is not an unresolved relationship.

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Advantage of trading Gold and Silver

Long and short trading:
CFDs do not define your transaction as a direct transaction, because they allow traders to freely place bullish (long) and bearish (short) bets, which are limited to gold or silver in the real market The way of trading is different. Physical metals need time to buy and store. If the market reaches the “up limit” or “down limit”, the futures market can restrict traders from entering the market or prevent them from ending their transactions.
Margin trading:
Lower margin requirements mean that you hold less principal as collateral for opening trades, which in turn allows traders to further diversify their investment portfolios and seek more trading profit opportunities.
Ability to hedge risk:
Hedging is the process of reducing transaction risk, opening a transaction in the opposite direction to the first transaction. For example, if investors are long in gold futures contracts or ETFs and are worried that the price of gold may fluctuate, they can short (sell) the equivalent gold CFDs to lock in profits. In this way, if the price of gold falls, gold CFD trading will make money and is expected to offset the loss of futures contracts.
Diversify your investment portfolio:
Gold and silver can be regarded as a form of currency and a commodity. Because they have higher volatility when trading with the U.S. dollar, this means that all traders should pay more attention to metals.

Invest in Gold and Silver through SuperForex

Why choose SuperForex to invest in Gold and Silver?

Competitive spreads:
Use SuperForex to trade gold with the lowest spreads in the industry.
Low margin requirements:
The large leverage of up to 500:1 means that the margin requirements are very low, allowing traders of all levels to trade gold.
The original zero account with low handling fee:
On the original zero account, each complete contract only charges a handling fee of $4, which allows SuperForex to provide smaller spreads.
This is especially useful for day traders who want to stop losses away from price action.
Pure spread account without commission:
In the Pure Spread account, there is no additional commission in the transaction, which means you only need to pay a relatively small spread to enter the transaction, which helps to keep it low for day traders the cost of.
Trading mini-hands and micro-hands:
By allowing SuperForex’s traders to enter the market with mini-hands (0.1) and micro-hands (0.01), traders of all levels can trade metals more easily. It also allows better control of risk management.

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