PRECIOUS METAL

Why trade precious metals with Hereford

  ♦  Spot and futures
      Speculate on futures markets, or take a short-term view with expiry-free products.

  ♦  Metals on margin
      Gain full exposure to precious metals, such as gold, with only a small deposit.

  ♦  Risk management tools
      Make sure you have complete control over every trade with stops, alerts and more.

Trading precious metals with Hereford

With Hereford, you can trade CFDs on gold and silver.
You'll find quotes for all our precious metals on our trading platform. When you take a position, you're speculating on the metal's rise or fall in value, rather than taking actual ownership. If your prediction is correct, you'll make a profit. If not, you'll make a loss.
As CFDs are leveraged products, you'll only ever need to put down a small deposit to gain exposure to the full value of your trade. Keep in mind that while this helps your capital to go further, it also means you stand to lose more than your initial outlay.

Factors affecting precious metal prices

Supply and demand

Like any product or service, a shortage of precious metals, or an increased need for them, makes them more valuable. For example, if a strike at a major silver mine interrupts production, silver prices may see an uplift over the short term.
An improvement in mining equipment, meanwhile, could have the opposite effect, speeding up production and saturating the market.

Economic uncertainty

In times of economic and political instability, precious metals are traditionally viewed as safe havens due to their lasting value.
We saw this theory in action when Donald Trump's election caused gold to rally, as nervous investors flocked towards its market security.

Strength of the dollar

Given that the precious metals are dollar-denominated, they are particularly susceptible to the value of the greenback. When the dollar falls, precious metals are both a good place to store its value and less costly for other countries to purchase - meaning it is likely to push the price of precious metals higher.

Industrial output

Precious metals have a huge range of industrial uses, including in the manufacture of automotive parts, medical devices, precision electronics and jewellery.
What's more, new applications are continuously being developed. As demand for these goods grows, so does the demand for precious metals.

Precious metals: trading vs investing

Trading

  ♦  Gain exposure to the full value of your position with only a small deposit, via leverage
  ♦  Speculate on short and medium-term price moves
  ♦  Take a position on a fall in value as well as a rise
  ♦  CFDs are traded over the counter

Investing

  ♦  Put up the full value of the investment
  ♦  Speculate on short, medium and long-term price moves
  ♦  Profit only when your investment rises in value.
  ♦  ETFs, stocks, futures and options are traded on exchanges; bullion requires a specialist