Metal trading has a long history and hence, trading bullions is not new. But modern trading is more systematic and is done under a specific exchange in most parts of the world.
In India, bullions are traded under Multi Commodity Exchange or MCX.
Bullions comprise of different precious metals - gold, silver, palladium and platinum. Indian bullion traders mostly trade with gold, silver and platinum. Wisdom shared hereunder has valuable MCX tips along with other significant details!
Who trades bullions and what is their objective?
There are two kinds of customers who trade with bullions - first, those who make ornaments and need precious metals to make them, and second, those who are speculators!
First category of customers primarily involves manufacturers of electronic and jewelry goods. These goods further are bought in different industries and by retail customers. In other words, demand for gold, silver and other precious metals is largely influenced by the industries and retail customers.
Second category of customers is speculators who are bullion traders and investors. Their objective is to profit by hedging. Hedging means to buy precious metals ahead of an expected price increase or rise in inflation.
One difference between the two types of customers is:
- First customer category needs physical stock of precious metals because it has to produce something out of them.
- Second customer category or speculator though wants to invest in precious metals but does not require their physical stock.
Need for a dedicated exchange to trade bullions got created because of the second category of customers.
What is Physical Bullion?
Precious metals have been valuable for centuries. Therefore, physical bullion market has been long into existence, where some people used to sell and others used to buy bullions in physical form.
Today, physical bullions are available in the form of coins, bars, as also they are bought in the form of jewelry. Because it is pricey, people make special arrangements to safeguard their assets - the bullions. Customers who physical bullions in any variant either want to preserve it as a long time asset or as an investment security for tough times.
Banks too provide personal safes to their account holders for storing their precious metals.
What are ETFs or Exchange Traded Funds?
ETF or Exchange Traded Fund is another derivative of bullions. This has been generated by investment firms for the convenience of customers.
So when you buy ETFs, you don’t have to buy physical stock of bullions and still you are invested in gold, silver, platinum or palladium.
ETFs can be traded like stocks.
Bullion Trading Cost
When you are an MCX bullion trader, you got to bear a charge on your trades. These costs vary according to the bullion chosen for trade. You may also have to pay the brokerage if your trading with bullions through some broker.
There also are some financial advisories who offer specific bullion trading packages to their clients. When you choose such a package, you pay a subscription fees and get discount on regular bullion trading.
Using the insight provided above, and bullion tips shared here, you can begin trading use these insights! However, it is advisable to associate with a professional investment advisory for this purpose.
Source: {[http://www.articlesbase.com/day-trading-articles/everything-you-must-know-about-the-bullion-market-7106932.html]}
In India, bullions are traded under Multi Commodity Exchange or MCX.
Bullions comprise of different precious metals - gold, silver, palladium and platinum. Indian bullion traders mostly trade with gold, silver and platinum. Wisdom shared hereunder has valuable MCX tips along with other significant details!
Who trades bullions and what is their objective?
There are two kinds of customers who trade with bullions - first, those who make ornaments and need precious metals to make them, and second, those who are speculators!
First category of customers primarily involves manufacturers of electronic and jewelry goods. These goods further are bought in different industries and by retail customers. In other words, demand for gold, silver and other precious metals is largely influenced by the industries and retail customers.
Second category of customers is speculators who are bullion traders and investors. Their objective is to profit by hedging. Hedging means to buy precious metals ahead of an expected price increase or rise in inflation.
One difference between the two types of customers is:
- First customer category needs physical stock of precious metals because it has to produce something out of them.
- Second customer category or speculator though wants to invest in precious metals but does not require their physical stock.
Need for a dedicated exchange to trade bullions got created because of the second category of customers.
What is Physical Bullion?
Precious metals have been valuable for centuries. Therefore, physical bullion market has been long into existence, where some people used to sell and others used to buy bullions in physical form.
Today, physical bullions are available in the form of coins, bars, as also they are bought in the form of jewelry. Because it is pricey, people make special arrangements to safeguard their assets - the bullions. Customers who physical bullions in any variant either want to preserve it as a long time asset or as an investment security for tough times.
Banks too provide personal safes to their account holders for storing their precious metals.
What are ETFs or Exchange Traded Funds?
ETF or Exchange Traded Fund is another derivative of bullions. This has been generated by investment firms for the convenience of customers.
So when you buy ETFs, you don’t have to buy physical stock of bullions and still you are invested in gold, silver, platinum or palladium.
ETFs can be traded like stocks.
Bullion Trading Cost
When you are an MCX bullion trader, you got to bear a charge on your trades. These costs vary according to the bullion chosen for trade. You may also have to pay the brokerage if your trading with bullions through some broker.
There also are some financial advisories who offer specific bullion trading packages to their clients. When you choose such a package, you pay a subscription fees and get discount on regular bullion trading.
Using the insight provided above, and bullion tips shared here, you can begin trading use these insights! However, it is advisable to associate with a professional investment advisory for this purpose.
Source: {[http://www.articlesbase.com/day-trading-articles/everything-you-must-know-about-the-bullion-market-7106932.html]}
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