Precious metals mainly refer to eight metal elements such as gold, silver and platinum group metals (ruthenium, rhodium, palladium, osmium, iridium and platinum). Most of these metals have beautiful colors and strong chemical stability, and are not easy to react with other chemicals under general conditions.
precious metals investment is divided into physical investment and electronic trading investment. Among them, physical investment refers to the process that investors earn the difference by buying low and selling high when they are optimistic about the precious metal market. It can also be a means of avoiding risks when the economic prospects are not optimistic, so as to maintain and increase the value of assets.
Electronic trading refers to the determination of buying or selling according to the fluctuation of the market prices of precious metals such as gold and silver. Generally, there is leverage in this kind of trading, which can get a larger return at a lower cost.
With the aggravation of the threat of inflation, the turmoil of the global economic situation and the outbreak of the world financial crisis, the demand of precious metals investment, which has the function of hedging, has shown an explosive growth trend. Because of its high liquidity and value preservation, precious metals can resist currency changes and price increases caused by inflation.
Extended information:
Policies and regulations of precious metals investment:
The Regular Precious Metals Trading Center pointed out that due to the No.38 document issued by the State Council earlier to rectify the trading market, the central bank and other five ministries jointly issued a document, strictly prohibiting any institution or individual from setting up a gold exchange or a gold trading platform except the Shanghai Gold Exchange and the Shanghai Futures Exchange.
according to relevant documents, in 211, the State Council issued document No.38, "the State Council's decision on cleaning up and rectifying all kinds of trading places to effectively prevent financial risks", which pointed out that no unit is allowed to conduct standardized contract trading by centralized bidding, electronic matchmaking, anonymous trading, market maker and other centralized trading methods, except for the establishment of futures trading places approved by the State Council or the State Council futures regulatory agencies according to law. Trading places engaged in the trading of insurance, credit, gold and other financial products must be approved by the relevant financial management departments of the State Council.
At present, precious metals investment is dominated by spot silver and some physical gold that can be traded on trading platforms, among which there are many illegal platforms, such as London gold and London silver, which are quoted in US dollars. Over the years, there have been many fraud cases, which require investors to be cautious.
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