Metals
Trading precious metals such as gold in particular has been related to economic wealth and has therefore been highly valued for long times. In the financial markets, metal investments tend to maintain their value over long periods of time. Thus they offer a long-term secure haven for commodity investors.
Factors affecting valuable metals’ prices
Supply and demand
With the increase of demand, the metal price will increase whereas when the demand is vulnerable the cost of valuable metals declines.
Inflation
Inflation has an immediate impact on the price of valuable metals. Generally, the growing rate of inflation has a tendency to raise the price of valuable metals.
Value of the U.S Dollar and other economical events.
The price and value of precious metal can be affected by several economic factors such as value of the US dollar, economic and political events, and natural events.
Business demands
Commercial uses for gold, like the increasing demand for gold in the jewelry and electronics business, could make the price of precious metals to rise. Investing in valuable metals can assist investors to hedge towards market volatility, political uncertainty, and financial collapse. It also can be an essential part of a diversified long-term portfolio.