In recent years, online trading of precious metals has become very heated. Most of the trading volume is gold trading, but silver trading is gaining in popularity as well. The uncertainty that spread among the financial markets, which began in 2008, increased the online trading of gold, silver and other metals. The reason was quite simple: investors saw these commodities as physical investments that would not disappear even if the markets crashed. Still today, these metals are seen as a ‘safe bet’ during times of upheaval.
Another reason for the growth in the volume of gold trading has to do with the development of the semi-conductor industry, which uses gold for making microchips. Because of this, and speculations on online gold trading, the price of gold has risen from 300$/oz to almost 2000 $/oz in just five years.
To recap, forex brokers offer simple online gold trading platforms that allow the trader to program and execute specific requests. When the price of gold reaches a certain level, the trading system can send a signal on behalf of the trader, whereby he or she can send buy or sell orders to the gold market and trade gold directly. Needless to say, this new channel for gold online trading is opening a new horizon in the world of gold investments.