At present, most precious metal investment platforms can provide trading services for spot gold and spot silver at the same time, but many investors are not very clear about the differences and connections between them. Although gold and silver are both precious metals, they do have essential differences.
The first is that the liquidity of the market is different. In the precious metals market, the trading scale of spot silver is far smaller than that of gold. For example, in 2014, the transaction volume of silver was 1 trillion US dollars, while that of gold was as high as 9 trillion US dollars. Higher liquidity means that there are more investors trading gold than silver, so when doing spot gold, the order will be closed faster.
Investing in spot gold and spot silver has different functions. The main function of investing in gold is to preserve value, while the function of silver is relatively inferior in this regard. Moreover, gold has a stronger ability to resist risks, so when encountering risk events, the effect of investing in gold is much better than silver. high profit.
Overall, the trend of spot gold is more stable and more traceable than spot silver. As for which product is better, it mainly depends on the investor's own risk appetite. The controllability of spot silver is worse than that of gold, but sometimes its explosive power is stronger and the risk is relatively greater. The most important thing is to choose the investment that really suits you.
At the level of trading rules, there are also obvious differences between spot gold and spot silver:
1. Contract unit: spot gold is 100 ounces per lot, and spot silver is 5,000 ounces per lot;
2. Spread fee: spot gold spread is $50/lot, and spot silver spread is $200/lot;
3. Minimum price fluctuation: spot gold It is $0.01, and spot silver is $0.001.