What is silver?
Silver refers to a precious metal and element on the periodic table. Commonly used in the production of jewelry, coins, electronics, and photography, it has numerous industrial and creative applications and is a valuable metal. Like silver and other natural resources, silver is classed as a commodity; or a publicly traded, tangible asset. Tangible assets' prices generally move in the opposite direction from stocks and bonds, so many investors will turn towards commodities when the stock market has a poor outlook or the economy is facing recession or political tensions.
Silver can also act as an inflation hedge because it is a physical asset with intrinsic worth, unlike currencies. Silver holds its value in the long term, and remains stable well when interest rates are low, or when fixed-income investments aren't performing well. In these ways, silver functions like silver as an investment, serving a safe haven role in an investors portfolio. However, silver is an industrial metal as well as an investment metal, which can significantly affect its price performance.
Silver price movements in the past
The price chart shows that silver reached closing highs of $29.771 on the 6th Aug 2020, with lows of $12.101 on 19th Mar 2020. The general consensus among market watchers, researchers, investors and precious metals experts is that the long-term forecast for silver is positive. Therefore silver is an attractive alternative investment that remains a relatively safe option in an extremely volatile market.
How to invest in silver
There are multiple ways to invest in silver. You can buy physical silver in the form of bullion (bars), jewellery or coins. The disadvantages of this method are that you must store the silver and ensure its security, typically by storing it in a bank which costs money.
You can also purchase mutual or exchange traded funds (EFT). These funds are linked to the price of silver and the administrator of the fund holds the silver on your behalf, and are more liquid than owning the physical silver outright. You can also purchase silver certificates; which represent a certain percentage ownership of a company involved in silver trading or a certain amount of silver itself. You can invest in silver indirectly by purchasing shares in silver mining or royalty and streaming company. These companies benefit from increases in price and are subject to the same risks and volatility as other stocks.
An alternative instrument is the tokenised commodities option offered on the Dzengi.com leveraged trading platform. The value of tokenised assets are linked to the value of an underlying asset or commodity, and any change to asset's price is reflected in the value of the tokenised asset. Tokenised assets are based on blockchain technology, which is rooted in distributed ledger technology, enabling easier data storage and record keeping. The tokenisation of real tradable assets increases the efficiency of trading by lowering transaction costs and improving execution speed, and the price can be monitored on the silver spot price chart.
Tokenised silver spot price trading guide
Trading tokenised silver is easy and, in many ways, the process is similar to trading other types of securities. There are a few basic steps:
Step 1: visit the Dzengi.com trading platform and open an account by completing the two-factor authentication security process.
Step 2: choose how much you want to deposit into your account. It is possible to trade with either crypto or with fiat currency.
Step 3: calculate the value of the position you want to open, or you can calculate the size of the position based on your available capital and the percentage margin. For example, a position of $10,000 would require that you have $50 of available capital when you trade tokenised silver 1 : 200 (0.5%).
Step 4: positions are opened using the same approach in place at other investment platforms - i.e. taking a long position if a silver price increase is anticipated, or shorting if there is an expected decline in the silver price value. The handy silver price chart could be used to monitor price movement.
Step 5: Dzengi.com links the open the trading positions between its clients and all unpaired buy or sell orders that are hedged with Capital.com, LMAX Digital or, if needed, with Binance, Bitstamp, Kraken, NASDAQ, NYSE and Gain Capital.
Step 6: you may also consider placing a take profits order or initiate a stop loss order.
Trade tokenised silver with Dzengi.com
Silver trading at Dzengi.com tokenised assets exchange has a number of advantages. Tokenised assets are underpinned by robust and immutable blockchain technology. Opening a trade will give you a token that tracks and moves according to the underlying instrument's price.
Trade tokenised silver spot price with a tight market spread, and benefit from maker rebates and competitive taker fees.
Effective risk management
Manage your risks and secure your profits with stop loss and take profit orders and mitigate any losses with negative balance protection.
Instant order execution
Dzengi.com has a scalable and low latency order management system, which can execute 50 million trades per second. It is a high-growth, crypto platform seamlessly linking the booming world of cryptocurrencies with the world of traditional financial assets. Powered by simple, slick and intuitive technology, the platform is designed to enable investors to securely buy, trade and invest in popular cryptocurrencies using both crypto and fiat currencies.
Depending on the regulatory perimeters in different countries Dzengi.com offers different products around digital assets. To help investors trade with confidence, the platform is fitted with robust risk management controls, transparent pricing and extensive financial education content.
Dzengi Com US LLC is registered with the Financial Crimes Enforcement Network as a Money Services Business. Its parent entity, Dzengi Com Limited is licensed by the Gibraltar Financial Services Commission as a Distributed Ledger Technology (DLT) Provider. The company has offices located in the US, Belarus, Gibraltar and Ukraine.
Manage your risks and secure your profits with stop loss and take profit orders. Save your assets with negative balance protection.
We have a scalable and low latency order management system, which can execute 50 million trades per second.
Dzengi.com operates under new Belarusian regulation with best-in-class AML and KYC laws. Regulatory details and fees are upfront.