Precious Metals
Heavy Demand Beyond the Obvious
Michael C. Thomsett
Most market watchers are keenly aware of precious metals futures, whether purchased on the commodities market or through one of many exchange-traded funds (ETFs). Precious metals have a direct effect on many aspects of the market, including currency valuation, and the value of metals responds immediately to most forms of market, economic, and political news.
These metals, however, are not merely speculative tools and certainly are not limited to use purely as futures contracts to fix the commodity price for future purchase. They serve as the basis for currency valuation and for comparisons between currencies of nations not on a commodity-based standard. This occurs because a ...
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