Precious Metals used in industrial processes are also popular with investors :
4. Iridium; which is used in specialty alloys
5. Palladium; which is used in electronics and chemical applications.
Investors can participate in precious metals by purchasing the physical asset, purchasing futures contracts for the particular metal or through the purchase of shares in publicly traded companies engaged in the exploration or production of precious metals.
A wide variety of Commodities are traded in the futures market, including precious metals.
Futures offer Investors a leveraged means of buying or selling precious metals, set at a specific price and time in the future. Futures are generally viewed as speculative vehicles, but they can also be used to lock in prices for purchases and sales of Physical Commodities.
The VALUE OF GOLD is determined by the market 24 hours a day, nearly seven days a week. Gold trades predominantly as a function of sentiment; its price is less affected by the laws of supply and demand. This is because new mine supply is vastly outweighed by the sheer size of above-ground, hoarded Gold. Against the Dollar, Gold could be traded in CFDs as XAUUSD.
Several factors account for an increased demand of Gold:
Systemic Financial Concerns
War or Political Crises