We all know that currencies are an integral part of the global financial system, and that trillions of dollars per day are traded in the Forex sector. However, unfortunately, there are some disadvantages when it comes to dealing with currencies, despite the fact that the markets are so robust.
For example, your trades might be affected by socio-political situations and events beyond your control. While there are some who might be better suited for currency trading than others - the truth is that a politician making an announcement somewhere in the world that will affect a trade strategy that you have thought out for some period of time can be frustrating. No one wants to lose a significant amount of money because of an event that they could not anticipate, or political tensions that they could not predict. That's one of the reasons why many traders have turned to exotic metals as an alternative way to profit.
While there are many crowded markets; many believe that the exotic metals market still has room to grow, which means that traders have room to profit.
It is no secret that the gold market alone is worth trillions in market capitalization, but there are also many other opportunities out there besides investing in gold and silver. World Markets believes in allowing investors secure access to the metals market that can help them identify opportunities and diversify their portfolio.
We all know that exotic metals drive some of the technological devices that billions of human beings use every day. It shouldn't come as a surprise that there is certainly a significant amount of money to be made if a disciplined investor were to study trends within the technology sector and invest accordingly in specific metals. Even if it might not be where the majority of their money is allocated, precious metals can still be a great way to hedge against risk and diversify an investor's portfolio, as well. There are all sorts of metals that an investor might be interested in. For example, many investors have decided to turn to platinum for multiple reasons. One reason is the fact that there is a limited supply of platinum, which drives up its overall value. There is also a growing demand for platinum, especially considering how integral it is to overall goods manufacturing.
While there are stockpiles of gold and silver all over the world, many might view platinum as a great investment alternative for the long-term. Those who invested in platinum in 2000, for example, have had some amazing returns, as platinum skyrocketed from being worth around $350 an ounce in 1999 to a price of over $2100 in May of 2008. The fact that platinum was a much more unsaturated market is what helped to allow for these types of gains.
While palladium is often overshadowed by other metals, there are many that still view it as an asset that will grow significantly over time. The metal, like rhodium, is central to the automotive industry, and many believe that the demand is rising faster than the supply. Of course, this means that palladium could potentially grow in value.
It doesn't matter whether we are talking about the aerospace/defense sector, the entertainment sector, the automotive sector, or more - there are many precious metals that are bound to increase in value due to the fact that there has been a technological explosion with respect to human civilization in the past several decades. World Markets is proud to offer investors the opportunity to invest in the metals of their choice, and does not recommend one metal over another.
World Markets has partnerships with some of the most prestigious companies in the space, which is why we are proud to offer the ability to invest in precious metals that might not be considered as "mainstream" as gold or silver. Of course, World Markets does have access to traditional gold and silver markets, as well, at a competitive price. Our partnership with Suisse Gold also allows access to unique and commemorative coins for our clients, as well.
Rhodium is also one of the most sought after precious metals in the world, and with good reason. The main reason for this is the fact that it is the metal used for automotive catalytic converters. When one considers that there are over 1 billion cars in the world, and tens of millions of cars are being created each year - it is easy to see why an investor might be interested. Palladium is also often utilized for the same purpose.
Rhodium bars coming soon.
While it might not be held in the same regard as gold and/or silver, copper is also a very popular precious metal among investors all across the world. Many point to the fact that copper is cheap as a reason for its volatility - which can be great for the savvy investor. While volatility might not be an attribute for the conservative investor, the truth is that for a cheaper commodity it can often mean wild gains that cannot be found in other sectors. It's also important to note that copper is used for data centers that allow for cloud computing, one of the most powerful emerging technological trends - and some believe that copper will rise dramatically in value over time as a result. Copper wire is also used for electric vehicles, which is growing in popularity. For example, electric vehicles sales in the United States alone increased by 81% in 2018.
However unfortunately, due to the price of copper being only €5.00 per KG, it is not realistic for retail investors to purchase the physical version of this asset.