Macro: Sandcastle economics
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Trading precious metals
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Commodities are increasingly popular to invest in. But commodities are a wide range of products that are being used in either consumption or production. Therefore, different commodities are affected by different external factors. To sharpen your research, we've asked our Head of Commodity Strategy, Ole S. Hansen, to outline what factors are most relevant to pay attention to, when diving into the four commodity subgroups, energy, industrial metals, precious metals and agricultural commodities.
Here we look at what mainly affects precious metals. Precious metals are highly valuable metals such as gold and silver. This group also covers metals like platinum and palladium, which among other uses is being used to reduce emission from diesel and gasoline-fueled cars and trucks. The prices of these metals move with the global macro financial and political situation. In times of uncertainty, falling markets or rising inflation, precious metals are often seen as a popular investment as a so-called safe haven—an investment object with a steadier price relative to the rest of the market. Price movements are also dependent on changes in bond yields, official short-term interest rates, the strength of the dollar as well as demand from end-users such as central banks.
Note: It is worth important to be aware that the umbrella term precious metals, covers certain metals like palladium, which are mainly connected to specific industries. They behave differently from a safe haven metals like gold, so they should be disregarded from this and make sure to do extra research before plunging into such metals.
What to pay attention to, when researching precious metals:
Here we look at what mainly affects precious metals. Precious metals are highly valuable metals such as gold and silver. This group also covers metals like platinum and palladium, which among other uses is being used to reduce emission from diesel and gasoline-fueled cars and trucks. The prices of these metals move with the global macro financial and political situation. In times of uncertainty, falling markets or rising inflation, precious metals are often seen as a popular investment as a so-called safe haven—an investment object with a steadier price relative to the rest of the market. Price movements are also dependent on changes in bond yields, official short-term interest rates, the strength of the dollar as well as demand from end-users such as central banks.
Note: It is worth important to be aware that the umbrella term precious metals, covers certain metals like palladium, which are mainly connected to specific industries. They behave differently from a safe haven metals like gold, so they should be disregarded from this and make sure to do extra research before plunging into such metals.
What to pay attention to, when researching precious metals:
How to read the graph: The graph indicates, which factors could have the greatest impact on a given type of commodity. The further away from the center the line is, the greater the influence that specific topic has.
Check out any of the other three subgroups:
Note that this should be used only as inspiration and neither should be seen as a recommendation to invest in the asset class, nor should it be used as the only piece of information about whether it fits your investment strategy, portfolio and risk profile. More research is required to make investment decisions.Latest Market Insights
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