Foreign exchange investment

Foreign exchange is the creditor's rights held by the monetary management authorities (central bank, monetary management institutions, foreign exchange stabilization fund and Ministry of Finance) in the form of bank deposits, treasury bonds and long-term and short-term government securities. , which can be used when the balance of payments is in deficit. Including foreign currency, foreign currency deposits, foreign currency securities (treasury bonds, treasury bonds, corporate bonds, stocks, etc.). ) and foreign currency payment vouchers (bills, bank deposit vouchers, postal savings vouchers, etc.). ).

precious metals investment

Precious metals investment is divided into physical investment and electronic transaction investment. Among them, physical investment refers to the process that investors earn the difference by buying low and selling high when they are optimistic about the precious metal market. It can also be a means to avoid risks when the economic outlook is not optimistic, and realize the preservation and appreciation of assets. Electronic trading refers to the decision to buy or sell precious metals such as gold and silver according to market price fluctuations. This kind of transaction generally has leverage, which can make a big return at a small cost. With the aggravation of the threat of inflation, the turmoil of the global economic situation and the outbreak of the world financial crisis, the demand of precious metals investment, which has the function of hedging, has shown an explosive growth trend. Precious metals, because of their high liquidity and value preservation, can resist currency changes and price increases caused by inflation.

The difference between foreign exchange and precious metals investment:

First, the products traded in precious metals are relatively simple, and it is relatively easy to analyze them through technical means. Investors only need to analyze the next fluctuation direction of precious metal prices. However, foreign exchange transactions are different. There are many foreign exchange currency pairs available for trading in the market. For example, one platform of FXCM can trade more than 40 currency pairs. Investors should not only analyze the direction of foreign exchange movement, but also choose the right foreign exchange currency pair for trading, which is more complicated.

Second, both foreign exchange and precious metals are relatively volatile investment products, especially when doing international spot transactions, the exchange rate fluctuates particularly. Under normal circumstances, the daily fluctuation of precious metals is greater than that of foreign exchange, and of course the risk will be greater. There is more profit when there is profit. Among them, interested investors consider for themselves.

Third, the foreign exchange market is the largest in the world, with daily turnover exceeding one trillion, far exceeding the precious metal market. This determines that no institutional bank in the world can completely control the foreign exchange market, and investors can trade freely in the foreign exchange market. The probability that the gold market is controlled is also very low.

Fourth, foreign exchange and gold can be traded 24 hours a day. In general, the maximum leverage available for foreign exchange is significantly higher than that for precious metal products.

Note: Foreign exchange and precious metals investment are both high-risk investments, so investors should be cautious when investing!