Commodities have been
increasingly popularly traded instruments in CFD trading over the past years. The
Commodities markets have provided access for traders to gold and to silver
markets as well as to other precious metals. What boosted this trade after 2008
was considering precious metals as a safeguard against all kinds of trading
risks and this tendency is still valid.
Moreover, at the early
stage of chip manufacturing over the last years, chip manufacturing companies used a lot of gold. As gold
became more and more expensive, its trade grew on the markets. In result over
the last five years the price of gold has risen from 300$/oz to nearly 2000 $/oz.
silver and other precious commodities became available to trade with many
trading platforms online. Unlike the past when only institutions could
participate in gold trading, this trade today is accessible to all. Precious
metals markets are among the most active markets, benefitting from the advance
of technology brought by foreign exchanges and giving the possibility to
traders to benefit from the futures contracts.
To sum up, forex brokers have provided gold trading platforms, allowing
traders to place orders for selling or buying gold and thus opening new
prospects to gold investment. CFD trading contributes,
enabling speculation on the market movements. Actually the contracts are bought
and sold, instead of the physical shares, and there is an agreement between the
buyer and seller to swap the difference in value at the closing of the