Precious Metals CFD Trading

CWG provides 3 precious metal pairs including gold, silver, and platinum traded in USD or EUR. Precious metals can be a significant asset of diversified trading strategy.

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Why trade precious metals CFD with CWG?

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Long and short

Trading gold and silver online, in a risk-controlled environment, practice high-quality investment products other than foreign exchange on a simulated account.

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Metals on margin

Gain full exposure to precious metals, such as gold, with only a small deposit.

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Risk management tools

Make sure you have complete control over every trade with stops, alerts, and more.

Precious and Industrial Metals

Metals are commodity assets which are mined from the earth. For hundreds of years, governments have been using metals as indicators of value and mediums of exchange, making them an ideal trading instrument. Precious metals such as platinum, silver, gold, and industrial metals such as copper are listed for trading based on price movements for each metal. Moreover, these metals have everyday applications ranging from jewelry to electronics.

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Metal CFD Trading with CWG Trading

Metal trading is one of the most interesting commodities to break into. From silver and gold trading through palladium, metal is a material that’s in demand across many industries. It can be a very volatile marketplace to trade-in. So, where to start? Here are CWG trading’s top tips to help you get started.

How do I start gold and silver CFD trading?

Silver and gold trading, or any other metal you prefer, is a fairly simple market to understand.

Silver trading, along with gold, platinum, and a few others, is termed ‘precious metal trading“ in the commodity market. Remember- many of these metals aren’t only used in jewelry. However, there are many industrial applications for them. Starting from circuit boards onwards, that is why they trade so highly. You’ll find listings everywhere, but the New York Mercantile Exchange, the Tokyo Mercantile Exchange, and the London Bullion Market are the top picks for variety.

There is one thing every commodity trader should know- this market can be very volatile. However, that means that immense profit or losses can be made as well. Volatility is primarily driven by the fact that many of the geopolitical areas metals are harvested in, like the Middle East, can be politically unstable. Don’t let that deter you from these lucrative markets, however, remember that responsible trading should include doing your homework beforehand. Paying attention to international events is a great way to predict market movement. Far Eastern markets will often be good indicators for the current trading prices, as they open relatively earlier than the rest of the world.

What advantages does metal trading hold?

There are a few distinct advantages to the Metal commodity market.

√ Metal makes a great diversifying tool, completely independent of other markets

√ Great inflation hedge

√ Physical possession is possible unlike other investments (e.g. Gold bullions)

√ There are many investment types to choose from

√ A wide variety of metals

√ Essential, global currency- metal is always in use

As you can see, there are a few distinct possibilities with metal trading. When you trade with CWG Trading, you get the advantage of our unique platform tools to help buoy you through the process, too, so it’s well worth considering investing in this critical resource.

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  • Rapid operation on a huge range of markets.
  • Enjoy flexible access to more than 500 global markets with reliable operation
  • Deal seamlessly wherever you are
  • Trade on the go with our originally designed trading application
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FACTORS AFFECTING PRECIOUS METAL PRICES

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Supply and demand

Like any product or service, a shortage of precious metals, or an increased need for them, makes them more valuable. For example, if a strike at a major silver mine interrupts production, silver prices may see an uplift over the short term. An improvement in mining equipment, meanwhile, could have the opposite effect, speeding up production and saturating the market.

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Strength of the dollar

Given that the precious metals are dollar-denominated, they are particularly susceptible to the value of the greenback. When the dollar falls, precious metals are both a good place to store its value and less costly for other countries to purchase – meaning it is likely to push the price of precious metals higher.

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Economic uncertainty

In times of economic and political instability, precious metals are traditionally viewed as safe havens due to their lasting value. We saw this theory in action when Donald Trump’s election caused gold to rally, as nervous investors flocked towards its market security.

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Interest rates

Precious metals offer a desirable alternative for fixed-income investors, whose investments offer a lower yield when rates are slashed. As such, Fed decision-making may guide investors towards these safe-haven opportunities, but the Fed’s impact on precious metals shouldn’t be overstated. Of more importance is how to rate announcements affect the dollar.

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Industrial output

Precious metals have a huge range of industrial uses, including in the manufacture of automotive parts, medical devices, precision electronics, and jewelry. What’s more, new applications are continuously being developed. As demand for these goods grows, so does the demand for precious metals.

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Quantitative easing

Precious metals generally perform better in a rising- inflation environment. This is because quantitative easing, or money-printing, dilutes the value of the currency in circulation, and makes it more expensive to buy assets which are viewed as a reliable store of value.

Spreads and Swap fee

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CFDs (Contract For Difference) are complex instruments and come with a high risk of losing money rapidly due to leverage. Please ensure you fully understand the risks and take appropriate care to manage your own risk. Please read our Risk Disclosure carefully.