Precious Metal Investment: International Traders Await Fresh Momentum From Markets

CapitalTrustMarkets

Active Trader
According to HSBC, the soaring demand in investment had stimulated the rally in gold prices during the last decade but this investment demand has dried up mostly and is no longer defining the gold price movements. This rising demand for physical gold out of emerging economies and China has significantly become the primary driver of bullion prices in the year 2014.

Precious Metals are valued by investors from all over the world not only for their splendor but also for their ability to perform in uncertain or unpredictable economic times. Owing to this reason, many financial experts consider silver and gold to be primary elements in a well diversified portfolio.

In recent years, precious metal investment has performed significantly well in comparison to the traditional safe havens. While on one hand, these investments require investors to redefine their risk appetite, they offer them a chance to earn better returns on the other.

In the current low yield environment, steady returns on investments in advanced economies can be attained by obtaining extra yield by either going out of your risk curve or by achieving a well diversified portfolio of assets in emerging marketplace.

Investing in Precious Metals – a Wise Investment Strategy for Today’s Market

Owing to the tough economic conditions, investors today find it difficult to choose between investment products that are worth their investments. The recent financial landscape has promoted the concept of investing in savings account and 401 K investments to play a safe game. These investment products are mostly preferred by investors owing to the fact that these are considered as low risk investments.

The depressing financial landscape of today has forced investors to think longer and harder about their investment decisions. Their concerns are justified. They are worried about their retirement, they are worried if they will be able to pay for their kids’ education, and they are worried if they have enough money in their savings account to enjoy their retired lives – the concerns are unlimited.

But the good news is that we still have answers to all these questions. While the tough financial climate of today’s market has posed challenges for investors, these challenges also present opportunities.

It is an undisputed fact that the tough economic reality of the new millennium has affected the growth oriented investors in a very negative manner. They have become more conscious than ever about their investment decisions. The investing landscape is in the middle of dramatic shifts, nevertheless, there are investors that even in today’s challenging market environment are seeking solutions that offer the potential for yield.

Precious Metal Investment – The Gold and Silver Returns

As the worries of the American economy continue to weigh on the dollar and boosted prices for precious metals, the prices of Gold and Silver reached their highest levels in three months (as of February 2014).

Gold for April delivery climbed consecutively for the eighth time and settled at $1,318.60 an ounce on the Comex division of the New York Mercantile Exchange up $18.50 or 1.4 %. Since November 6, this was the highest close for the most actively traded contract. Gold for February delivery also rose to 1.4% and closed at $1,319 an ounce.

The prices of Silver showed even greater gains. The contract for March delivery rose $1.02 to $21.42 an ounce. The 5% rise was the biggest one day percentage gain since September 19. In addition, the Silver for February delivery rose to $21.411 an ounce.

The performance of these precious metals highlights how the weak economic data of the US have ignited an enthusiasm for precious metal investment among investors who had given the asset class a pounding in 2013.

This steady performance of precious metals in the Intentional market has compelled investors expecting a decline in precious metals in order to hedge their bets by buying contracts, thus causing prices to rise even more – a phenomenon called short squeeze.

As an investor you need to bear this fact in mind that your traditional portfolio mix of stocks, bonds and fixed income investments is no longer capable of delivering what you need. It needs to be more dynamic to help you deal with the rapidly challenging financial market and more diverse than ever to minimize the impact of turbulence in global markets.

The American government has taken a dramatic action in order to combat a very serious economic downturn. The results so far have been mixed; nevertheless, the overall effect on the national debt is pretty obvious.

The Money supply has been rapidly inflated by the Federal Reserve, but the record low interest rates will have to increase at some point in order to stave off inflation. But how successful this strategy will be and how it will affect future economic growth are some questions that still need to be answered. To many investors this uncertain environment represents a safe haven approach to diversification and a partial hedge against equities.

To keep yourself updated with the latest financial news, visit the official website of Capital Trust Markets

Capital Trust Markets is an online Forex brokerage firm, headquartered in New Zealand. It was established in 2013, with an emphasis on providing the most excellent customer services in the industry. The trading environment offered to investors and traders is unparalleled - devoid of all common mistakes usually prevalent in the financial trading industry. The focused determination to provide the highest quality products, services, and support to clients and customers is what truly sets Capital Trust Markets apart from every other major brokerage firm.
 

syai77

Active Trader
May 18, 2013
37
0
27
tuban
The Gold is moving down after reach its highest point in some week ago.
Perhaps, its caused by the decrease of russian military from border of ukraina..