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Precious Metals

Spot Precious Metals traded at JMI: Gold and Silver

Nations around the world embraced gold and silver as a store of wealth and a medium of international exchange. Individuals have sought to possess precious metals as insurance against the day-to-day uncertainties of paper money. Gold, silver, platinum and palladium constitute the majority of trading in precious metals.

Trading in precious metal futures market or spot market in a speculative manner provides an important alternative to traditional means of investing in precious metals such as gold bullion, coins, and mining stocks, and where substantial profits, as well as losses can be made. Trading contracts in precious metals also provide valuable trading tools for commercial producers and the users of these metals.

Precious metals are traded on the futures and spot markets in contracts (a contract of gold is 100oz while a contract of silver is 5000oz). On the spot market, precious metals are usually bought or sold based on a value date of 48 hours which can be rolled over on a daily basis thereafter. Trading on the futures market is done by buying or selling precious metal for a specific settlement date in the future. For example July Gold, can be bought in March for July settlement.
Trade with JMI Brokers now the most traded, liquid and easily understood precious metals products on earth: Gold and Silver.
We offer our clients very tight spread on spot gold and silver with uninterrupted live pricing on our platform JMI Brokers Trading as well as trading precious metals futures with market spreads.

Benefits of trading with Precious Metals:

  • Precious metals have been a solid hedge against a declining U.S. dollar
  • Precious metals have been a proven safe-haven in times of war, political strife and uncertainty
  • Precious metals can offer outstanding price appreciation and profit potential
  • Trading Examples

    • Example 1: Buying Spot XAUUSD Contract
      • (Closing price - opening price) - (780.5 - 760.90 = 19.6 $ per contract)
      • If each contract consists of 100 oz (the value of the gold contract) then we must multiple 19.6 by 100, the profit therefore will be 19.6 * 100 = 1960 $ per contract Gross profit: (1960 * 4 lots = 7840 $)

    A client believes that Gold price against US Dollar is going to rise in the future. To exploit the situation the client intends to buy GOLD (XAUUSD).
    Spot gold quoted 760.20 /760.90; the client buys 4 lots at 760.90. This required a total margin of 4000 $ (margin of each lot is 1000 $).
    As expected spot gold price rises to 780.50/780.20; the client decides to sell these 4 lots (close his positions). So he sells 4 lots at 780.50.
    It's obvious that client has made a profit; to calculate it we should do the following:
    *Commission charges are NOT included in the above calculations

    • Example 2: Selling Silver Future (SI_0Y) Contract
      • (Closing price - opening price) - (13.23 - 13.14 = 0.09 $ per contract)
      • If each contract consists of 5000 oz (the value of the silver contract) then we must multiple 0.09 by 5000, the profit therefore will be 0.09 *5000= 450 $ per contract.
      • Gross Profit: (450*6lots = 2700 $)

    A client believes that silver prices is going to fall in the future, silver future price is quoted 13.14/13.155. The client sells 6 lots at 13.14. This required a total margin of 6000 $ (margin for each lot is 1000 $).
    The silver didn't move in the client's favor and its price now is 13.22/13.23, the clients decides to buy 6 lots of silver future contract (close his positions), so he buys 6 lots at 13.23.
    To calculate the loss of the client we should do the following:
    *Commission charges are NOT included in the above calculations.