Silver's lower price makes the value of annual supply much smaller than gold's. This explains why silver is more volatile than gold: It takes only a relatively small amount of money to have a greater impact on its price, more than gold or most any other asset class.
Silver has a much higher industrial demands than gold, which means the state of the global economy usually has a considerable influence on the price of silver. During periods of economic growth when demand for silver is high, the price of the metal often increases, making it a better investment than gold.
In times of economic stress, buying gold is more desirable. The precious metal is often viewed as a hedge against economic uncertainties and inflation. If there are problems in the economy, such as political instabilities, natural catastrophes, or unfair monetary policies, investors usually rush to gold to protect their investments from losses.
Central banks play a role in determining the value of gold. Most central banks around the world stock gold in their reserves but they rarely keep silver in their vaults. When central banks cause a disturbance in the gold market, it could be best to look for a more predictable investment opportunity in silver.
The gold/silver ratio (GSR) is the current price of an ounce of gold divided by the current price of an ounce of silver. It’s a simple numerical calculation that shows how many multiples gold is trading relative to the price of silver, a common indicator used by precious metals investors worldwide.
The calculation of required margin for commodities CFD is performed as follows:
Margin: Trade size in micro units × Ask price × Margin required
* A unit is expressed in US$
* Margin calculation of precious metal CFDs has nothing to do with the leverage setting in your account
Take XAU/USD as an example:
The basic platform settings for gold imply that the contract volume of 1 standard lot is 100 (100 ounces) and the required margin is 1%.
Assuming that the current XAUUSD price is 1468.88 / 1469.85, the required margin for buying 1 lot of gold would be:
100 × 1469.85 × 0.01 = 1469.85 US$
The formula for calculating the profit and loss of a commodity CFD is:
P&L = Number of lots × Contract size (trade size in micro-lots) × Pip movement
Units are expressed in USD
Pip movement of the BUY orders = Ask price at closing time — Bid price at opening time
Pip movement of the SELL orders = Ask price at opening time — Bid price at the time of closing a position
Let's take gold as an example:
Assume that the platform's current XAUUSD quote is 1468.88 / 1469.85. Lilly buys 1 lot of XAUUSD, and Tony is going to sell 1 lot of the same asset.
One week later the exchange rate of gold escalated to 1497.79 / 1499.75. So at this time profit and loss of our investors is:
Lilly's P&L = 1 × 100 × (1499.75 — 1469.88) = 2987 USD
Tony's P&L = 1 × 100 × (1469.85 — 1499.79) = — 2994 USD
Investors have a few options when deciding to trade gold. They can directly invest in gold by purchasing gold bullion, which is a measured quantity of gold that often is assigned a serial number. Eagles Markets suggest that investors purchase gold derivatives such as gold CFDs that track the underlying asset price without actually owning any gold. CFDs use leverage, allowing investors to gain greater exposure for their initial capital.
Swap fees of different instruments are different
View trading hours of all instruments and holiday arragement of the platform
The spread are floating, apply for Raw Spread Account to get the best trading environment
Rollover is a cost which designs to compensate the prices changes when extend the trading contract to the new one
10 Factors which affects gold markets much