The online trading with precious metals has become very popular during the last couple of years. The bigger part of the trading volume is gold trading, but silver trading is also becoming popular. 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 obvious: the investors consider these commodities as physical investments that would not disappear even if the markets situation becomes worse. Even at present the precious metals are seen as a ‘safe bet’ during times of turmoil.
Another explanation for the growth in the volume of gold trading is related to the development of the semi-conductor industry, which uses gold for making microchips. For this reason and speculations on online gold trading, the price of gold has risen from 300$/oz to almost 2000 $/oz in just five years.
Over the years, the technology used for online trading has become more highly developed, especially in the gold trading market online. These days almost anybody can trade gold directly, through advanced online trading platforms. The situation was totally different 10-15 years ago, when online gold trading was available only for institutions that traded gold directly in the commodities market in Chicago. This kind of trading is very expensive and for people who want to trade gold online it is almost impossible to participate. Eventually, forex brokers developed INVESTMIB products that offer online gold trading as part and parcel of the forex trading experience. Gold, silver and oil trading are the most common entries into online INVESTMIB trading as it provides the trader the possibility to profit from the expiration of futures.
To sum up, forex brokers offer simple online gold trading platforms that make it possible for the trader to plan 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 can send buy or sell orders to the gold market and trade gold directly. Undoubtedly, this new channel for gold online trading has opened up new opportunities in the world of gold investments.