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The Importance of Foreign Trade in Metals
The most popular trading of metals takes place in precious metals like gold and silver on the global level. After this comes copper trading. These are essential commodities that are often traded in different forms. These metals are seen as a kind of financial security and considered to be a safe investment. The value of these metals and the prices that these metals fetch are economically viable. Investors always seem to take advantage of the value it offers after investing capital in it and its their safe haven.

Let us now understand how trading in these metals is impacted on the global level.

Trading in gold
Over a given time if one is to look at the reports, there is rise in the value of gold and the trend is long term on the global level. At the end of 2007 and throughout 2008 the prices of gold went up due to the fear regarding credit crunch, the investors globally began investing in it as safe commodity. This was done to safeguard their assets. Ever since then the prices of gold are going up and the trend is continuing ever since the year 2011 when the price of gold reached $1500/ oz. Gold is seen as a safe asset, that has lead to increase in its trading volumes and often due to this trend the prices are at all time high.

Copper
Copper is yet another one of the precious metals that is often dealt with. It is popular due to its usage in industrial metal products, for building and construction material, used in electrical work and for plumbing purpose. This metal too is one of the most sought-after metals in the trading industry and often taken as one of the measurement of economic growth. Copper demand increases at a time when a country is going through economic expansion. If one is to look at trade of copper, the largest producers list includes China, Peru, North America, South Africa and Chile. If there is any political unrest in any of these countries, the prices of copper will fluctuate too.

Factors involved in affecting the value of these products

Equity Markets
Prices of gold are volatile as it is affected adversely by the equity indices. The time when investors are all about gold and invest heavily in it due to the security it brings.


Global Economy Global issues like any kind of crises, problems, fluctuation in GDP and even unemployment. Again, during economic crises investors seek refuge in safer assets like precious metals investment.

Global Supply
The short-term prices are unaffected by this factor, however in the long term the prices of these commodities are affected. These metals are mined as these are minerals, the supply is pressure dependent. When for instance mining is able to meet the demand things flow smoothly, however, it is to be noted that it is a natural resource and it is not infinite either.

Industry
Copper too is graded as per its quality and it is across the globe that the industries require it. For this reason, it depends upon industry performance and the pricing too if impacted with this factor.