Metals have historically been an instrument used to preserve wealth during times of high inflation and economic uncertainty. Many financial advisors consider them essential to any diversified financial portfolio. While they can be a powerful long-term asset, metals are becoming increasingly popular speculative instruments.

 

ForexTradingPro provides all clients with the opportunity to trade gold and silver spot metals at the lowest possible cost.

 

Gold is commonly used for hedging against all sorts of market calamity. While less tangible markets such as foreign exchange or shares can fall sharply on negative economic data, precious metals have intrinsic value. In a world with significantly rising government debt and currency devaluation, gold is also a great way to hedge against inflation. It has a negative correlation with real interest rates. As inflation rises and real interest rates fall, the gold price is likely to keep rising as it attracts investors who are unable to extract a decent return from traditional asset investments.

 

Silver is a bit more speculative in nature than gold thus making it more volatile. With its use for industrial purposes and with the rise of nanotechnologies, the potential uses for silver keep growing and thus its price often increases during periods of economic prosperity while gold is falling in price.