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Metals market: what to choose? Gold? Silver? Copper?
For futures traders gold - it's just another market. And for those who want to significantly diversify its investment portfolio, looking for some stability in this month, many analysts recommend silver.
You might think that the gold and silver markets are identical. But metals have different properties, and not always traded in unison. Some analysts say gold, silver and copper are three sisters: they are all from the same family, but each has its own character.
Gold - Queen score
Screaming and temperamental. Today, gold is almost completely ignores the basic rules of supply and demand, and behaves as an asset of the currency market. Interest rates, stocks, economic factors - all have an impact on its price.
Silver - middle sister
This metal combines excellent performance and gold, and some features of its industry relative. Significant changes in the value of gold can pull behind itself and silver. However, copper can provide resistance. Thus, a factor which may cause movement cost of gold or copper, often have a more modest effect on the silver market.
Copper - an industrious bee
Over the past hundred years, copper gained the most widespread industrial metal status in the world. The price of this metal has even been used as an informal indicator of the general state of the economy. Copper lives by the rules of supply and demand and usually thrives in times of economic growth and suffers losses during the economic downturn.
Silver is trading up with gold for much of the past two months. But copper prices remain low, which is caused by a number of factors. One of which is a slowdown in demand from China. In 2016, Chinese copper imports are expected to decline by 10%.
As for industrial metals, is the main obstacle to them - inflation, or rather, lack thereof.
Silver will remain vulnerable to the next gold rally, which may be caused by sale of shares on the market. The price of the metal could rise if the Fed will take a softer stance on raising interest rates, which will cause the dollar to decline. However, according to many analysts, this decline in the US currency will be short-lived. In the long term, the dollar strengthened against other currencies.
During the second and third quarters of 2016 silver may be between the opposite sentiment in the gold and copper markets.