How to trade and invest in Silver?
Everyone now knows the opportunities presented by the trading of gold, but what about the Silver?
To answer this very interesting question, we
invite you to discover through this article how to invest
in the precious metal silver and how to trade it online.
With this information, you can begin to make a profit by buying and selling silver on the major markets.
How to convert the Silver prices and why?
First of all, it is important to understand where to use the most silver production. Indeed, nearly half of this production, 44% of the total production is used by the industrial technology, particularly in laptops, digital cameras or MP3 players.
And In contrast to what many people assume, the jewelry sector is the largest consumer of Silver with only 30% of production.
Like gold, silver is traded on the cash market and OTC. So supply and demand determine the value of silver on the major financial markets.
What you should know before you start trading the Silver?
To understand how to fix the Silver prices, you should focus on the different elements that will be considered in the calculation, especially, the needs of the industry, and the volume of mineral extractions production. But the price of silver is partially correlated with the price of gold, the two active sharing a safe haven status, especially in the most uncertain economic periods.
Although historical silver prices have marked a sharp decline during the previous years (since 2008), we are witnessing a rebound of precious metal markets. Indeed, silver, like gold recently have reached highest levels, taking advantage of the climate of uncertainty surrounding the global economy. So this period really is the most convenient time to invest in this asset as it is really very profitable for traders.
.
With this information, you can begin to make a profit by buying and selling silver on the major markets.
How to convert the Silver prices and why?
First of all, it is important to understand where to use the most silver production. Indeed, nearly half of this production, 44% of the total production is used by the industrial technology, particularly in laptops, digital cameras or MP3 players.
And In contrast to what many people assume, the jewelry sector is the largest consumer of Silver with only 30% of production.
Like gold, silver is traded on the cash market and OTC. So supply and demand determine the value of silver on the major financial markets.
What you should know before you start trading the Silver?
To understand how to fix the Silver prices, you should focus on the different elements that will be considered in the calculation, especially, the needs of the industry, and the volume of mineral extractions production. But the price of silver is partially correlated with the price of gold, the two active sharing a safe haven status, especially in the most uncertain economic periods.
Although historical silver prices have marked a sharp decline during the previous years (since 2008), we are witnessing a rebound of precious metal markets. Indeed, silver, like gold recently have reached highest levels, taking advantage of the climate of uncertainty surrounding the global economy. So this period really is the most convenient time to invest in this asset as it is really very profitable for traders.
.
Trading Silver with CFDs:
If it is possible to
invest money in Forex, we can also invest in futures and options on several international
markets such as NYMEX and New York Mercantile
Exchange, but also TCE or Tokyo
Commodity Exchange. Concerning the
French money exchange;
market;
there are opportunities
for traditional trading.
But the easiest and most effective way to make money is to trade silver without the benefit of great experience in this market is the use of CFD, these contracts for differences is offered by Forex brokers.
But the easiest and most effective way to make money is to trade silver without the benefit of great experience in this market is the use of CFD, these contracts for differences is offered by Forex brokers.
In fact, thanks to CFD, registering a Forex trading platform, you will have the opportunity to speculate on different types of assets such as commodities, equities and equity indices in the same way like to speculate in a cross currency.
Absolutely, this is
equivalent to open a position at a
certain level of price and consider a decline or a significant increase in the
price to earn the difference between the time of purchase of your CFD and the
time of t its closure.
Taking the following simple example:
Taking the following simple example:
You expect a rise of silver prices, and you decide to buy CFDs on Silver .
You open a position at $ 31.00. When the price of silver hit $ 32.00, you close your position. You will earn $ 1 per contract.
