Silver has some extraordinary qualities that make it shine in industries like electronics, medicine and jewelry; yet its true value lies in just how important it is to the global economy. Silver is so rare that people used it as a store of value for thousands of years, and became an essential trading commodity during the height of the Roman Empire. Whether seasoned or beginner, every investor should consider trading silver for increased opportunities. The online CFDs broker TradeFW provides everything needed to shine on the silver market.
The return to Silver
The rising prices of gold have determined many traders to spread their risk over other investments into precious metals. Silver is being used by traders as an investment, as hedge against inflation, or as a safety net against financial meltdowns. The three biggest factors that affect the price of silver are supply and demand, the US dollar, and the industrial use of silver in many technological sectors.
After a disappointing 2018, fortunately, this year there is a lot of optimism in the marketplace for this precious metal.
Unlike gold, silver sees heavy industrial use. That is why commodity analysts say that it was badly affected by weak base metals, like copper, which fell dramatically in June of 2018 after a three-year high1. The escalation of the global trade war between two of the world’s largest economies has also stalled economic growth expectations, forecasting a weaker demand for industrial metals.
Top analysts expect silver to be less industry influenced and vastly grow its role as a monetary metal, outperforming gold in 20192. The optimistic outlook on silver largely depends on the positive view on gold. With silver being more volatile, rising gold prices could mean that silver will outperform it.
Silver Trading – Advantages
Silver is an asset that possesses a lot of qualities which make it a great investment. As expected, trading it comes with many convincing advantages. The following list covers the major advantages of silver trading:
- Because of industrial expansion, there is a very high demand in the market for silver.
- Silver is a limited resource, which boosts its value significantly.
- Silver is a low-risk investment.
- Silver performs well even in turbulent economic or political times.
- Silver is highly liquid.
- Unlike other assets, silver and gold don’t depreciate in value.
- It can be very easy to sell silver to any part of the world because of its high liquidity.
- Silver investments can be done in a variety of different forms (physical form, ETFs, CFDs etc.)
How to invest in silver with an online broker
The possibility to buy bullion silver in coin and bar form is still out there, but the advantages are outnumbered by the disadvantages.
With an online brokerage firm you can trade this precious metal by investing in silver Exchange Traded Funds (ETFs), silver Contracts for Difference (CFDs), or by investing in silver mining stocks. Using the contracts for difference to trade silver is one of the most efficient methods. When you margin trade, the requirement can be as little as 0.5%, giving you the leverage of 200 to 1 on your money. In contrast, silver mining stocks are susceptible to a series of factors which make them a more complex investment.
Whichever option you choose, its efficiency and outcome depend on the online broker you pick to work with. TradeFW.com is a leading CFDs online broker and you can trust it with your investment plans for a myriad of reasons. The online firm is regulated and licensed to operate by CySEC. It enables you to trade in a secure and protected environment (negative balance protection, segregated accounts), to start from your current level of experience (standard or VIP account) and pushes you to evolve and pursue greater financial opportunities by offering you a stellar educational center and continuous assistance from a team of experts.
Choosing an online broker is an equally decision as any other you’ll make in your investing journey and every little detail counts. Look for more than just a platform where you place your trades, look for someone like TradeFw, a reliable financial partner!