01
METAL CATEGORIES
Precious Metals vs Base Metals
Metals are generally divided into two main categories. Understanding
the difference can help traders identify the factors that may influence
each market.
02
MARKET ACCESS
Ways of Trading Metals
Exposure to metal markets can be obtained through several types of
financial instruments or through direct ownership of physical metals.
01
Futures Contracts
Futures allow market participants to trade contracts linked to the
future price of a metal according to predefined contract conditions.
02
Exchange-Traded Funds
ETFs can provide exposure to individual metals, baskets of metals or
companies operating within the mining and metals industries.
03
Physical Metals
Investors can also purchase physical metals such as gold or silver
bars and coins, although storage and transaction considerations apply.
03
MARKET DRIVERS
What Influences Metal Prices?
Metal prices can react to a wide variety of global developments.
Traders often monitor economic, political and market conditions when
analysing potential price movements.
01
Supply & Demand
Mining production, inventories and global consumption can influence
the balance between supply and demand.
02
Geopolitical Events
Political instability, international conflicts and trade restrictions
can influence market expectations and metal prices.
03
Economic Indicators
Economic growth, industrial production, employment and inflation
can affect expectations for future demand.
04
Currency Movements
Because many metals are internationally priced in US dollars,
changes in currency values can influence their market price.
05
Interest Rates
Changes in interest rates and monetary policy can influence investor
demand, particularly for precious metals such as gold.
06
Industrial Demand
Construction, manufacturing, technology and infrastructure projects
can significantly influence demand for industrial metals.
04
QUICK COMPARISON
Understanding Different Metal Markets
| Metal |
Category |
Common Market Drivers |
|
Gold
|
Precious Metal
|
Inflation, interest rates, currencies and market uncertainty
|
|
Silver
|
Precious Metal
|
Investment demand, industrial demand and economic conditions
|
|
Platinum
|
Precious Metal
|
Industrial demand, automotive industry and production
|
|
Copper
|
Base Metal
|
Construction, manufacturing and global economic growth
|
|
Nickel
|
Base Metal
|
Manufacturing, batteries and industrial production
|
