Both gold and silver are precious metals, both have served as currency in the history of human currency, and spot gold and silver spot, as their most important financial derivatives, have good profitability, liquidity and operability. They are all good investment products. So what is the difference between spot gold and silver spot? The editor thinks that we should start with the difference in properties of gold and silver.
1. Differences in investment attributes between gold and silver
(1) Gold is more sensitive to currency changes, while silver is more sensitive to economic changes.
(2) The link between the production of silver and the price of silver is not as strong as the link between the production of gold and the price of gold.
(3) Silver prices are more volatile than gold prices, partly due to silver's lower price and smaller market size.
2. What is the difference between spot gold and silver spot
(1) The spread is different. The spread of spot gold is generally US$0.50/oz, while the spread of silver spot is generally US$0.04/oz.
(2) The contract units are different.
The standard lot of the spot gold trading contract is 100 ounces of gold, while the spot silver is 5000 ounces.
(3) Different profits
In spot gold trading, the profit is $100 for every $1 fluctuation in the gold price; while in silver spot trading, the profit is $5,000 for every $1 fluctuation in the silver price.
(4) Different capital leverage
Although the market margin of both is 1,000 USD/lot, the leverage ratio is different due to the different contract value. Among them, the leverage of spot gold is about 123 times (1230*100/1000), The leverage of silver spot is about 80 times (16*5000/1000).
I believe that after the above explanation, investors have a rational understanding of the difference between spot gold and silver spot. Investors can choose their own preferred investment varieties and the best time to enter the market according to the differences in the investment attributes of gold and silver, and pay attention to the differences in trading rules between the two.