Precious Metals Trading Chooses Gold or Silver

2022-01-17 18:02:41

As precious metals, gold and silver have a lot in common. As a flexible investment product, precious metal trading can ensure the relative safety of investors' funds, so they are loved by the majority of investors, but there are also many investors who do not know whether to trade precious metals. Which one is better to invest in gold or silver?

The sensitivity of precious metal transactions. Silver investment is more sensitive to economic changes, while gold investment is more sensitive to currency changes. A large part of the demand for silver comes from industry, accounting for about 40% of the total. The demand for gold is basically listed as pure investment or jewelry. Due to the close relationship between silver and industry, silver is very sensitive to changes in economic factors, such as industrial productivity and manufacturing demand.

The daily fluctuations of silver and gold in precious metal trading are different. The daily performance of gold prices is relatively stable, while the fluctuations of silver prices are relatively large. The small size and low liquidity of the silver investment market, coupled with fluctuating demand across industries and stored-value uses, have resulted in more volatile silver trading.

Precious metals trade different product resources. Silver is mainly used for the production of metal ancillary products such as lead, zinc, copper and gold. The price of silver is not closely related to its output. The price of gold trading depends on the relationship between supply and demand. If the supply exceeds demand, the price of gold will be affected and fall back. If the supply is insufficient, the price of gold will rise again.

If the currency depreciates, gold is the best investment product. Gold is a safe-haven property. With the weakening of the economy and the depreciation of the currency, the price of gold may rise due to the economic downturn, thus being sought after by investors.

When the national economy recovers, the best precious metal transaction is to speculate on silver. Silver has stronger industrial properties than gold. China as a big country in the use of silver. International silver prices rose on the back of favorable manufacturing data. In addition, the recovery of important products and manufacturing in the global economy will further increase the price of silver.

To sum up, in precious metal trading, both gold investment and silver trading have their own advantages and disadvantages. Gold and silver have different market trends in different orders. For transaction costs, gold investment The cost is higher because gold is scarcer, but in terms of returns, silver's returns are more objective than gold.

Risk Warning: The above content is for reference only, and does not represent JRFX’s position. JRFX does not assume any form of loss caused by any trading carried out in accordance with this article. Please consult your financial planner for your investment portfolios and manage your own risk.

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