Online Trading: Will Precious Metals be the Way to go in 2017?

Online Trading: Will Precious Metals be the Way to go in 2017?

Online Trading: Will Precious Metals be the Way to go in 2017?

Considering the recent Brexit vote, a rather uncertain election out of the United States and pronounced trepidation in regards to the European Union as a fiscal concept, many online trading enthusiasts are contemplating which sectors may represent safe havens in 2017. There are some who believe that commodities in general (and precious metals in particular) could represent the next lucrative market. Why is this the case, what can we expect from benchmark indicators such as gold and might we see some values return to pre-crisis levels? Let’s take a look at some of the predictions associated with these questions.

The Bottom Line: Bullish Gold?

In short, many analysts predict that the price of gold will test $1,550 dollars by the end of 2016 (1). What is even more important is that some witness this trend continuing well into 2017 and beyond. Some investors firmly believe that gold prices might soar to above $3,000 dollars by 2018. However, such individuals tend to be relying upon candlestick charts, Fibonacci lines and other decidedly technical analyses. The truth of the matter is that a more conservative approach should be taken.

One of the main reasons why gold may again become the dream of any precious metals investor is that the industrial demand for this precious metal should start to rise thanks to favourable economic data emerging from both developing economies as well as large powerhouses such as North America. This has always underpinned more optimistic movements over time. Relying upon charts alone could be dangerous. Indeed, there were countless online traders who lost a great deal of money during the financial crisis due to the fact that they could not look beyond simple support and resistance levels.

Silver Predictions

As a general rule, the price of silver has roughly followed the price of gold. This arises from the fact that both are valued in dollars and each is highly prized as an industrial metal. Some analysts feel that the recent patterns exhibited in silver prices will become even more firmly established throughout 2017 (2). Once again, these assumptions are based more upon technical analyses than underlying fundamentals.

The main reason that silver may be a top buy is simple economics. There are countless online traders who are keen to become involved with the precious metals market and do not have the ability to purchase gold by the troy ounce. In this respect, silver could be a much more efficient means to enjoy healthy returns without worrying about a massive financial commitment. So, it becomes clear why silver has been called the “poor man’s gold”.

Looking Away from the Big Players

There is no doubt that the majority of investors will first think of silver and gold in reference to precious metals. However, other commodities within this sector such as copper should also be watched carefully. What is even more interesting for those who are taking an institutional approach is that lesser-known substances including rhodium could be in for massive gains. These metals tend to be the “dark horses” of the industry, as few traders are aware of their industrial applications within markets such as communications and smartphones. One past example can be seen in the truly massive spike in rhodium prices that took place during the 2005-2007 period. Rhodium is currently trading at approximately $625 dollars after trading at over $800 dollars an ounce in September 2015 (3). According to technical and manufacturing data, another rally may soon occur.

Platinum and palladium could very well be in for the same movements during the coming year. These two metals are also involved within many industries and should positive economic data continue to be released, their prominence within the world of online trading might soon make financial waves.

The Myth of the “Sure Thing”

We should note here that these are only rough predictions. Past or present performance are not necessarily indicators of future profits. The best way to keep ahead of the latest news is to employ the resources found at CMC Markets. Not only does this portal offer advanced trading platforms, but late-breaking precious metal prices can be obtained when they matter the most.