Rare and uncommon with a high economic value, a Precious Metal is considered valuable. Metals are a physical commodity that has always been valuable and may continue to be so in the future.
Precious metals are popular trading instruments. Gold and silver have been exchanged for goods and currencies throughout history. Metals are seen in general as an important way to diversify one’s portfolio, with gold being particularly popular because of its status as a reliable metal to hedge against inflation and market volatility.
When you trade CFDs on Precious Metals, it means you speculate where the price of the selected Metal will move. If you believe that the price will rise then you BUY. If your prediction is that the price will fall, then you SELL.
Traders tend to use precious metals as ‘safe-haven assets which see increased demand flow as economic developments and political unrest increase volatility across other markets.