How and When to Trade Metals

Navigating through the world of trading and investing can be difficult. Between cryptocurrencies, equities, and ETFs, it can be hard to know where to begin. Another trading option to consider are metals. This can include physical precious metals like gold and silver, or mining contracts. Let’s explore some of the many options for metals trading and investment.

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Options for Trading Metals

Metals trading can be a great way to diversify your portfolio, and can offer an alternative to traditional stocks.

Physical Precious Metals

Physical precious metals, like gold and silver, have been traded and used as currency for thousands of years. One main benefit to these is they can be kept at your home, or in any location of your choice, allowing you access at all hours.

Another added benefit is that you can find them in a wide variety of places. Purchasing can be done online twenty four hours a day from online bullion dealers such as JM Bullion, APMEX, or SD Bullion. They can also be purchased at local coin shops (LCS) or pawn shops. Always make sure you are buying from a reputable dealer.

Platinum, palladium, and rhodium are other precious metals options, though they are not quite as popular as silver and gold.

Futures Contracts and Mining Stocks

Another option is futures contracts for the mining of metals. Whether it is gold, silver, copper, nickel, or platinum, you can purchase mining and futures contracts for any metal. Essentially, a futures contract is traded like a stock, and is an agreement to sell or buy a physical asset in the future.

Mining stocks are traded like most other equities on the exchange. When purchasing a share of mining stock, you are investing in the company that physically mines and extracts the metal.

Futures contracts and mining stocks can be traded the same as any other equity on the NYSE. The stock exchange is open for trading Monday through Friday, 9:30 a.m. to 4 p.m. EST. This excludes major U.S. holidays. There are also pre-market hours which run Monday through Friday, 4 a.m. to 9:30 a.m. EST. And post-market hours which run the same days, and go from 4 p.m. to 8 p.m. EST.

Metals ETFs

Exchange traded funds (ETFs) are traded in much the same way as futures contracts and mining stocks are. One of the biggest differences is that an ETF is comprised of multiple stocks, rather than a sock of a single company. Think of them as a basket or bucket of stocks.

There are many ETFs available on the market. Common metal ETFs include copper, nickel, and other base metals; precious metal such as gold, silver, and platinum; and mining stocks and futures. ETFs are traded within the same stock exchange hours as all other stocks and equities.

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Now that you know the basics of how to trade in metals, and the hours in which to do so, you can begin to take steps to diversify your investment portfolio. Metals trading can be within reach of anyone, whether you have a large account or a modest amount of capital.

Happy trading!

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