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What are precious metals.

Precious metals mainly refer to 8 metal elements including gold, silver and platinum group metals (ruthenium, rhodium, palladium, osmium, iridium, platinum). Most of these metals have beautiful colors and strong chemical stability, and are not prone to chemical reactions with other chemical substances under normal conditions.

Precious metal investment is divided into physical investment and electronic trading investment. Among them, physical investment refers to the process in which investors buy low and sell high to earn the price difference when they are optimistic about the precious metal market. It can also be a hedging method adopted when the economic prospects are not optimistic, in order to maintain and increase the value of assets.

Electronic trading refers to determining whether to buy or sell based on the fluctuations in the market prices of precious metals such as gold and silver. This type of transaction generally involves leverage, and larger profits can be obtained at a smaller cost. Return.

With the intensification of the threat of inflation, the turbulence of the global economic situation, and the outbreak of the world financial crisis, the demand for precious metal investment with the function of hedging and preserving value has shown an explosive growth trend. Due to the high liquidity and value preservation of precious metals, they can resist currency value changes and price increases caused by inflation.

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Policies and regulations for precious metal investment:

The Formal Precious Metals Trading Center pointed out that due to the previous document No. 38 issued by the State Council to rectify the trading market, the central bank subsequently Five ministries and commissions jointly issued a document strictly prohibiting any institution or individual other than the Shanghai Gold Exchange and Shanghai Futures Exchange from setting up gold exchanges or gold trading platforms.

According to relevant documents, the State Council issued Document No. 38 in 2011, "The State Council's Decision on Cleaning up and Rectifying Various Trading Venues to Effectively Prevent Financial Risks." Document No. 38 pointed out that, unless approved by the State Council or the State Council's futures regulatory agency in accordance with the law, Except for the establishment of trading venues engaged in futures trading,

No unit is allowed to conduct standardized contract transactions through centralized bidding, electronic matching, anonymous trading, market making and other centralized trading methods. Trading venues engaged in the trading of insurance, credit, gold and other financial products must be established with the approval of the relevant financial management department of the State Council.

At present, domestic precious metal investment is mainly based on spot silver and some physical gold that can use trading platforms. There are many illegal platforms, such as many London gold, London silver and other underground markets quoted in US dollars. Over the years, There have also been many cases of fraud, and investors need to be cautious.

Baidu Encyclopedia—Precious Metals