Markets
Precious Metals
What are Precious Metals?
01
Globally Recognized Value Store
Among the most recognized and extensively traded high-value precious metals are silver, gold, platinum, and palladium. Yet, there are others, including beryllium, ruthenium, osmium, rhenium, iridium, and rhodium. GPC focuses solely on gold and silver trading, with this article spotlighting these two precious metals.
02
Scarcity Leads to Inflation Hedge
Scarcity and utility unite precious metals, rendering them exceptionally valuable. Their capacity to serve as a wealth reserve or for industrial uses underpins their significance. Notably, their value remains steady, in contrast to currencies prone to inflation.
03
Gold Through the Ages
For instance, gold has played roles as currency and jewellery crafting material for millennia. It retains its unchanging nature, is recyclable, and is held in the reserves of Central banks. Approximately 10% is employed in manufacturing, spanning electronics, aerospace circuitry, and medical applications.
Gold (XAU/USD)
Gold requires no formal introduction. Its significance has resonated in human lives for millennia, encompassing emotional, cultural, and economic dimensions. Notably, the Gold Standard functioned as a monetary system in Western countries before the Second World War, wherein nations linked their currency values to gold. Post the war, the Bretton Woods System emerged, setting a constant value of $35 for an ounce of gold. Other currencies adhered to fixed exchange rates with the dollar. However, the Gold Standard era concluded in 1971, rendering the dollar's value independent of gold.
- Globally Accepted Store of Value
- Effective Hedge Against Inflation
- Safe Haven Investment During Market Volatility
- High Liquidity, Easy to Buy and Sell
- Diversified Investment Asset Historical Tradition and Long-Term Stability
Silver (XAG/USD)
While frequently overshadowed by gold, silver boasts a range of applications beyond adornments and currency. Its exceptional thermal and electrical conduction attributes generate substantial demand in the technology sector. Notably, silver ions exhibit antimicrobial qualities, finding utility in medical contexts. Additionally, silver contributes to crafting mirrors in advanced telescopes and solar panels. Surprisingly, it's scarcer than gold, often sourced as a by-product during the production of other foundational metals.
- Critical Raw Material for Industrial and Technological Demands
- Hedge Against Inflation and Economic Fluctuations
- Gold/Silver Ratio Points to Potential Value
- High Liquidity, Short-Term Investment Opportunities
- Diverse Investment Strategy, Complementing Gold
- Potential for Growth Aligned with Industrial Demand
Cryptocurrency
Crypto Trading Dynamics: Profiting Amidst Market Volatility and Technological Innovation
Profit Generation
The volatile nature of the cryptocurrency market provides opportunities for traders to buy low and sell high, potentially generating substantial returns on their investments.
Speculation
Cryptocurrencies are known for their price volatility. Traders often speculate on the future price movements of cryptocurrencies, aiming to profit from short-term price fluctuations.
Hedging
Cryptocurrencies can serve as a hedge against certain risks in the financial system. For example, during times of economic uncertainty or currency devaluation, some individuals and businesses may turn to cryptocurrencies as a way to preserve their wealth.
Arbitrage
Cryptocurrency markets can sometimes have price discrepancies between different exchanges due to their decentralized and fragmented nature. Traders engage in arbitrage by buying a cryptocurrency on one exchange where the price is lower and selling it on another exchange where the price is higher, thereby profiting from the price difference.