Due to several extreme price movements, there is an increasing investor interest in trading precious metals. Gold and silver prices have undergone considerable fluctuations caused by political and market sentiment changes, along with the level of supply and demand for these metals.
Gold and silver are both considered to be an asset class, and a great number of investors regard them as stores of value in times of monetary uncertainty, with the anticipation that their price is more likely to withstand economic downturns or crises than any other asset class.
Unlike most commodities which are mainly dependent on production and consumption levels, gold prices are not. They follow the pulse of political changes and make it possible for gold to function as a hedge against other markets in times of uncertainty. Along with gold, silver is unique: due to its extensive use in various industries, it has a more dynamic price than any other metals.
The preference for the purchase and physical ownership of precious metals as long-term investment has increased in recent years. This also presents opportunities for those interested in short-term investment because derivatives and exchange-traded contracts are a less capital-intensive and simpler way to take a position on the price movements of gold and silver.