Precious Metals

Precious metals provide an attractive investment opportunity for international investors as they are the only financial instrument that has intrinsic value. This means regardless of what happens in the global economy, the value will remain relatively stable.

Currencies may be depressed because of a lack of credibility fuelled by an international financial crisis. We experienced this in 2008, with the collapse of the housing bubble that triggered a chain reaction of crisis around the world. Metals provide a safety net for investors, since these events do not impact the real-world value of the instrument.

The most common precious metals in the market are gold and silver. They are considered “assets of refuge” or “safe havens”, during intervals of high volatility across the financial markets. Interestingly, because metals react like any other physical good, their prices tend to increase as volatility increases.

Metals are an exceptional asset class that you can use to diversify a trading portfolio and constantly provide attractive opportunities for traders.