When the price of gold falls, the price of other precious metals like silver and copper usually follow suit. That is what happened this week in the world of trade when the prices of silver and copper fell sharply after the initial plunge of the gold prices.
Turmoil in Russia and Ukraine
Because of the recent turmoil in Russia and the Ukraine, the gold market has been a ‘safe haven’ for investors. The situation between Russia and the Ukraine trickled down the line, affecting other countries, thus creating a ‘safe haven’ investment period. During turbulent times, it is considered that a commodity like gold will keep or exponentially increased in value. As long as things were so volatile in the Russia and Ukraine situation, investors considered gold to be a good investment. Since things have become much less volatile between Russia and the Ukraine, easing tensions, the ‘safe haven’ no longer exists. It is now that these investments become much more risky, causing investors to draw back on investments. This caused the gold decline, thus causing silver and copper to plunge in response.
Binary Options Traders
Binary options traders must keep up with economic trends and troubles in countries because of the effect these issues can have on the market. Traders in binary options use commodities as their primary assets, giving the fun and excitement of trading speculations on gold, silver and copper. The advantage of trading in binary options with gold, silver and copper as primary assets is that traders do not have to know the size of the price movements. All binary options traders have to think about is the direction the price will go in trading, not how high or low it will go.
Although this sounds easy, it is still important for binary options traders to stay abreast of situations like Russia and the Ukraine. It is critical to the success of binary traders to conduct research on what is happening in the world economy, such as the situation in Russia and the Ukraine. By knowing this information binary traders will know if gold and silver will be on a constant increase over the next months, in which case traders would take a binary option of “call”, using gold or copper as a primary asset. Keep an eye on the world situations.