Precious metals trading refers to the activity of buying and selling gold, silver, and other rare metals in the financial market. These precious metals are often seen as a hedge investment and can also be a part of an investment portfolio.

Gold Investing

Gold has long been regarded as a symbol of wealth and power. In modern times, gold is not only a luxury product, but also an important industrial raw material, and gold reserves support the modern monetary system, and the demand is increasing. Since the beginning of 2006, the price of gold has climbed from US$517/oz to nearly US$2,600/oz*, demonstrating its growing value.

Gold Supply and Demand

Gold is often seen as a hedge against inflation. When inflation rises, the purchasing power of money decreases, and the value of gold is likely to increase because it is viewed as a real asset with a limited supply. Gold resources are not inexhaustible. In addition, in recent years, central banks of various countries have also intended to adjust the structure of foreign exchange reserves and increase gold reserves. In addition, people in some major gold-consuming countries such as China and India love to buy gold, driving up the price of gold.

Why invest in gold

In the trading market, spot gold is the most popular among investors. The spot gold market is extremely liquid and is conducted through contract trading. As the price of gold rises or falls, profit margins can be earned. Two-way investment opportunities allow investors to make profits in both rising and falling markets. The 24-hour trading method has attracted many investors around the world. The global daily trading volume of approximately US$2 trillion is enough to show the activity of gold trading. Gold is indispensable in the world's monetary system and is also very popular in the consumer market. It is also a traditional "safe haven" for funds. It has a special function of preserving value in times of inflation, currency depreciation and political instability. It has always been regarded as an excellent investment products and safe-haven assets.

For retail investors, there is no need to worry about storing funds in low-yielding deposit accounts and damaging the long-term value of capital. Therefore, gold has always been favored by investors. In Hong Kong and Singapore, Asia's trading hubs, gold is even more popular with professional investors and retail investors.