There are several kinds of metals that investors can trade. These metals are broadly classified under two categories – base and precious metals.
Precious metals are rare, organically occurring, metallic elements which don’t usually oxidise, corrode, or naturally tarnish. Gold, silver, palladium, and platinum are some of the major precious metals.
Base metals are common metals that can naturally oxidise, corrode, or tarnish. Copper, lead, and nickel are some popular base metals.
What affects the prices of precious metals?
There are two major factors that determine the prices of all precious metals – supply and demand.
In the case of silver, platinum, and palladium there can also be changes in industrial demand that will impact the price.
Any change in automobile production can also affect the change in prices of industrial precious metals considerably.
