Silver is a precious metal commodity that is widely used as a hedge against inflation or as a safe haven. Discover how to start silver trading, including what moves the value of silver in silver market and how to trade silver futures, spot prices and stocks.
WHAT IS SILVER TRADING?
Silver trading is the method of speculating on the price of silver to profit from any movement in its value. While traditional silver investing would involve buying and holding silver bars and coins, silver trading enables you to gain exposure to the market price without taking ownership of the physical metal.
Most silver trading takes place via futures, spot prices, shares and ETFs. You can take advantage of rising and falling silver prices using these instruments – the further the market moves in the direction you’ve predicted, the more you’d profit and the more it moves against you, the greater your losses.
The gold-silver ratio typically raises during bear markets and falls during bull markets. Gold becomes more expensive than silver in economic downturns, as although both are safe-haven assets, gold experiences significantly more attention than silver. Once the economy begins to recover, gold’s value falls back and trades nearer silver’s value again.
SILVER PRICES IN INTERNATIONAL MARKET:Silver is most commonly discovered through the process of mining for other metals. So, any increase in demand for metals such as copper and lead can cause a rise in silver supply. In international market silver is at 26.13 dollars per ounce.
Read more: Cornering the Silver Market