precious metals trading
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precious metals trading
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When indulging in precious metals trade one has to study
the market trends constantly as it is a highly volatile market. The
prices vary as per events and situations that arise. The domestic
precious metals market is not just influenced by all that happens within
the borders of the country, but also by all events that occur across the
globe. According to many people, who unaware of the trading that happen
in the precious metals market, precious metals trading implies buying
and selling of gold and silver bullion.
However, in India with a changing trend in market investments, traders, speculators and investors alike are taking more interest in precious metals that also include, ruthenium, rhodium, palladium, osmium, iridium and platinum. Why are these metals categorized as precious? This is because they are more scarcely available than other metals and their use places them as a wealth commodity. Precious metals can be bought and sold as jewelry, bullion or an industrial requirement. In India, the MMTC Limited (A Government of India Enterprise) imports and supplies bullion to the exporters under various provisions of Foreign Trade policy. Gold is most commonly bought in the form of jewelry. It is however also used for its industrial value. It is combined, or in technological lingo it is alloyed, with other metals such as copper, zinc, silver and nickel; and used as wiring in electronics or semi-conductors in computer chips. Silver is used in jewelry or silver-plating cutlery and art objects. It is commonly alloyed with copper. Silver has more industrial value than gold. It is mainly used for photographic materials. As it is an optimum conductor of heat and electricity, silver is largely used in computers, switchgear, thermostats, solders, brazing alloys, catalyst, batteries and pharmaceutical products. People trade in Platinum because of its value as jewelry and also because it functions as a high grade catalyst, when alloyed with rhodium, allowing chemical reactions such as reforming petroleum, producing nitric acid, producing pharmaceutical products and for removing hydrogen and chlorine. As mentioned earlier, Precious Metal Trading also entails metals such as palladium, which is used in alloy form in electrical contacts, especially in telephone systems; rhodium is used to plate steel and brass to prevent corrosion from sea water; iridium is alloyed with platinum and is used in electrical contacts, and in jewelry, particularly for setting diamonds; osmium is extremely hard and heavy and is alloyed with iridium to manufacture the nib tips of fountain pens and ballpoint pens; ruthenium is largely used as an alloy with platinum in jewelry and electrical contacts. ~ author Karishma Bajaj.
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