Risk information for the trade with precious metals
Over the millennia, precious metals are considered a particularly secure investment of assets, especially in times of crisis. Savers in particular use this safe form of preservation of the work performed.
However, the exchange rates for precious metals are not stable, but show a certain volatility (variation). At the same time, supply and demand are dependent on the exchange rate of the dollar as the world’s leading currency, on economically relevant news, and on further parameters.
This means that the purchase and sale of precious metals are associated with specific risks.
That is why it is important to be aware of some risks when investing in precious metals, such as:
The exchange rate fluctuations
Gold shows a particularly high volatility, in other words, the price of an ounce of gold can vary considerably. Analogously, this applies to the precious metals: platinum, palladium, and silver. Therefore, the risk of falling prices must be kept in mind. Gold is already very expensive, and with declining prices, it can only be sold at considerable reduced prices. From 1987 to 1997, for example, the price of gold has lost 40 % of its value.
The currency risk
Variations in the dollar exchange rate necessarily have an impact on the exchange rates of precious metals, since they are indicated in USD.
