From geopolitical unrest to trigger happy central bankers cranking up the printing presses (quantitative easing), it\u2019s apparent why market participants turn towards the natural safe haven qualities of physical precious metals when the chips are down. While metals such as Gold and Silver are currently valued decidedly south of the heady highs in 2011, the global financial crisis has cemented in the minds of global traders and investors the need to take a hedge against the unforeseeable and unquantifiable.<\/p>\n
While many analysts argue the lack of yield and intrinsic worth for precious metals such as gold, the same analyst may also agree it has its place in a balanced portfolio. With physical demand for the precious metal from China alone set to climb 25% by 2017, the investment prospect remains lucrative to say the least.<\/p>\n
There are a number of mediums traders or investors could use, with the simplest form likely to be a trip down to your local coin or bullion dealer, while the more experienced may trade a derivative such as CFD\u2019s, Futures or margin Forex. The clear advantage of the latter is cost given the trader has the ability to deal at extremely low dealing spreads and attractive leverage rates.<\/p>\n
Still, the question remains; why trade or invest in the physical? The answer is extremely simple. It\u2019s real! It\u2019s not a piece of paper with a promise from a bank, private company or government, it\u2019s something you can hold, admire, vault, hide and save for a rainy day. For the staunch believer (or \u2018doom and gloomer\u2019) of physical precious metals such as Gold and Silver, the idea of trading a derivate to gain an exposure to the notional value rather than being backed by a real tangible asset doesn\u2019t quite meet their needs.<\/p>\n