If you have already decided that binary options trading is a reliable way to get into the Forex market, then the next step is to choose the commodity or commodities that you’ll be trading. One of the most popular commodities is silver. This precious metal is one of the most popular commodities when it comes to binary options trading and many people prefer trading with silver rather than trading with natural gas, oil or other precious metals.
In order to be a successful trader, one must know what influences the price of silver. Of course, you can’t have complete understanding of absolutely all factors that influence this metal’s price, but the biggest influence comes from supply, demand and speculation from analysts. From the perspective of supply and demand, the price of silver may go up or down depending on the availability of the raw material.
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For many years, silver was linked with currency trading since most civilizations used this metal to mint their coins. However, modern countries use other materials to make their money, so silver’s value isn’t so dependent of currencies.
Binary options traders must learn to find and recognize the factors that influence the price of silver. This way the trader can predict the price’s movement and do the right trades.
Nowadays, silver is one of the most precious metal on Earth and it is widely used in medicine, jewelry and electronics. Many of you probably don’t know that silver is 6 times rarer than gold. This fact may not seem interesting, but it shows that it won’t be a surprise if the price of silver continues to go up and surpass the value of many other precious metals.
As we mentioned earlier, silver is one of the most popular commodities on the market and there are plenty of reasons for this. However, the main factor that turns silver one of the most popular commodities is that it is highly demanded by the industrial sector. Basically, this means that it is more likely for its price to go up than down. Many traders take advantage of this fact and combine it with thorough analysis in order to successfully predict the movement of the price of silver.