Precious metals investment products are not a single instrument. When Lucky Gold users learn about precious metals investment products, gold and silver are the ones they most frequently encounter. Although both fall under precious metals, they differ significantly in price levels, contract sizes and intraday volatility characteristics, and cannot be interpreted simply with the same set of parameters.
London Gold Is a Common Precious Metals Investment Product
Gold is one of the precious metals attracting high market attention. International spot gold is generally quoted in US dollars per ounce. During the Asian morning session on August 26, spot gold once stood at approximately 4646.77 US dollars per ounce, remaining in a relatively high price range recently.
Within the product system of the Hong Kong Gold Exchange, products such as London Gold 100 ounces and London Gold 10 ounces are available. Therefore, when learning about gold as a precious metals investment product, you need to separate the market price per ounce from the corresponding contract size.
What Are the Differences Between Silver and Gold
Silver is also an important precious metals investment product. Nearby silver futures settled at 68.636 US dollars per ounce on August 25 with a mild gain on that day. Compared with gold, silver has a noticeably lower price per ounce, yet its percentage price movements can sometimes be more volatile.
The Hong Kong Gold Exchange currently offers London Silver products of 5000 ounces and 500 ounces. This means you cannot directly assume that the market fluctuation for the same lot size is smaller merely because silver’s per-ounce price is lower. Trading volume must also be included in calculations.
Gold and Silver Have Greatly Different Contract Sizes
When examining precious metals investment products, contract size is the easiest factor to overlook. The common standard product for London Gold is 100 ounces. The standard product for London Silver can reach 5000 ounces. The gap between the two is substantial.
Therefore, a 1 US dollar per-ounce movement in gold does not equate to the same magnitude of price change for the standard contract as a 1 US dollar per-ounce movement in silver. It will be clearer to first understand how many ounces correspond to one lot before discussing price volatility.
Why Silver Charts Appear to Change Faster
Gold and silver do not share identical market participant structures. Besides demand from financial markets, silver has extensive industrial applications. Hence changes in supply and demand as well as market capital flows may affect its price.
This is why different precious metals investment products cannot simply substitute for one another. A rise in gold does not guarantee silver will rise by the same margin in tandem. Even if moving in the same direction, their percentage changes may differ.
Thus when viewing gold and silver quotes on Lucky Gold, it is advisable to observe their respective real-time prices and intraday ranges separately.
Should You Focus on Gold or Silver First
There is no universal answer to this question. For users who are new to precious metals investment products, a more sensible approach is to observe both markets separately for a period of time. Study how gold typically fluctuates within a trading day, then check silver’s intraday range. Meanwhile learn about their respective trading volumes and quotation methods.
Do not hastily conclude that a certain product suits you just because it posts a large gain on a single day.
How Lucky Gold Gives Access to Both Gold and Silver Markets
Lucky Gold provides gold and silver trading services and mobile tools. Users can track different precious metals investment products via one single platform. Its App delivers mobile services tailored to gold, silver and precious metals trading scenarios.
In practical use, this means you do not need to find completely separate software for gold and silver respectively. You may compare the two products within the same market quotation environment.
A Clearer Way to Choose Precious Metals Investment Products
A better mindset is not to ask which one is definitely superior, but to check whether you understand the product.
For gold, focus on international gold prices, the 100-ounce contract and its unique market traits. For silver, focus on international silver prices, the 5000-ounce contract and its relatively active price swings.
Each precious metals investment product has its own market characteristics. Understanding the product before deciding which market to follow is more valuable than merely comparing which one gained more on the day.