Silver, a sought-after precious metal, enjoys high demand and a steadily increasing price. Today, it’s seen as a reliable store of value and offers an array of industrial uses and potential, even though it’s no longer used as a currency. Following these steps to guide silver trading can help you navigate the market and make informed decisions.

As a result, trade in silver has been rising with it now becoming 0.15% of global trade volume. Silver exports are also seeing an increase with record growth recorded at 43% between 2019 and 2020. This resulted in a financial increase from $17.5 billion to $25.2 billion. 

Such growth figures indicate that trading silver can be a highly rewarding venture. Keep reading to learn more about the commodity and how to start trading it with ISA Bullion.

What is Silver Trading?

Traders speculate on the price of silver markets and execute instant trades for financial gains when trading silver online. They usually profit from price movements.

Compared to conventional investment methods, trading silver involves buying physical bars and coins and selling them at higher prices.

Traders generally use silver as an investment safety net because it serves as an inflation hedge. Its value increases during unstable market situations. Additionally, silver is perfect for portfolio diversification due to its inverse relationship with the US dollar.

So if the dollar is going down, you can expect Silver to go up resulting in a profit. 

How to start trading silver with ISA Bullion?

If you’re looking for a platform to trade Gold or Silver with ease, look no further than the ISA Bullion app. Make instant spot trades on the ISA Bullion app in just 4 easy steps!

Step 1: Create an account

Choose between creating a personal or corporate account. For a personal account, simply add the required information along with relevant documents, then submit it for approval.

Add details → 

For corporate account: Simply add the required information along with relevant documents + professional details and send for approval. 

Step 2: Get approval and add funds

You need to fund your account before you start trading. You can add funds through your credit or debit card among other options. You can also use your gold deposits to set up your finances. 

Step 3: Start trading

After receiving account approval and adding funds, you are all set to make your first trade. With ISA Bullion’s secure platform, you can execute instant transactions without fear of compromise.

Step 4: Secure your profits

Track your finances using our Trading App after each successful transaction. It comes packed with contemporary features designed to make your investment transactions instant, profitable, and secure.

How to trade with the ISA Bullion App via Laptop

Start trading Silver on the ISA Bullion App by following these steps:

• Access your ISA Bullion web trader dashboard by logging in

• Let’s say you wish to trade 1 kg of Silver from the web trader. You will first buy your desired Silver quantity.

• Now you have bought 1 Kg of Silver. 

• Once Silver reaches your desired selling price point. You can sell it. Congratulations. You have sold the Gold at a profit!

• Congrats! Your profitable trade is now successful.

How to trade with ISA Bullion’s Mobile App

• Log in to your user Dashboard via the ISA Bullion Mobile App & select category to trade. In the below screenshot, we clicked on the Silver-Kg category. 

• Now we’ll click buy Silver on the stated price of $619.55

• Confirm your purchase of 1 Kg of Silver

• Once Silver reaches your desired selling price point, now you can easily sell it. See in example below. 

• Once you sell your Silver, your increased capital along with your profit will accumulate in your ISA bullion wallet!

Executing trades with ISA Bullion is a very simple process and takes only a minute. Transactions are real-time, and profits are locked instantly. If you want to get started today, simply download ISA Bullion’s mobile app for Android & Apple from here now. 

Factors that affect the price of Silver

You have a reliable trading platform but need to understand how the market works. Here are some factors that affect commodity prices when trading silver:

Supply and Demand

Precious metals have a unique reaction to the laws of demand and supply. They’re always in high demand because supply is limited. Moreover, silver’s demand is consistently high due to its widespread industrial uses.

Since it is the most conductive metal, it’s often used in medical equipment and other industrial products. During an economic recession, silver’s industrial demand may decrease. However, its investment value always increases as a hedge.

Most silver is consumed during the fabrication process, limiting the amount that can be returned to the market. This prevents future supply for trading and investment.

Global economics

During financial uncertainty, investors seek ways to secure their finances. They look for better returns as the government lowers interest rates to encourage consumer spending. However, these policy changes often lead to rising inflation.

As inflation rises, the purchasing power of paper money keeps dropping. Investors use Silver as a hedge against the losses from currency depreciation. Consequently, as the dollar keeps weakening, the demand for silver keeps growing. This increase is usually due to traders vying to diversify their portfolios.

Silver trading strategies

There are many strategies to use for trading silver. But, you must choose one that aligns with current market conditions. For example, you can use a range trading strategy if the market is in a range-bound state. You can also use a trend trading strategy if it’s in a trending phase.

Trend trading strategy

This strategy involves using technical indicators to determine the market’s movement. It’s based on the idea that markets have an element of unpredictability. Therefore, traders can predict what will happen by analyzing historical trends and price movements. 

The trend ranges from mid to long-term but spans any timeframe. It depends on how long the trend lasts. You can use these steps to set up your trend trading strategy:

Understand the direction of the trend

A trending market is prone to reaching new extremes. An uptrend is characterized by a mix of higher highs and lower lows. A strong downward trend has a mix of lower lows and lower highs. 

Understanding the trend’s direction comes down to finding the appropriate time frame. You can use short-term charts to determine the potential entry and exit signals. A trendline can also be used to know the trend’s direction. The presence of an upward trend is confirmed with three touching points.

Filter signals in the trend’s direction

Once you’ve identified the direction, the next step is to find potential entry signals. You can do these using technical indicators like the Relative Strength Index. It’s a momentum oscillator that shows when an instrument is overbought or oversold. When the RSI goes above 70, it’s seen as overbought. When it goes below 30, it’s seen as oversold. 

Implement risk management procedures

Risk management is a vital part of your silver trading journey. For example, you can follow the one percent rule where you don’t put more than 1% of your capital on a single trade. Also, consider diversifying your investment across different areas. This includes the industrial sector, geographic region and market capitalization.

Range-bound trading strategy

This trading strategy comes in handy when the silver market goes sideways. You can set it up using these steps:

Determine the range

When price action is in a range-bound state, prices reach similar levels, known as consolidation. Identify the range using support and resistance levels to determine upper and lower limits.

Set up a support zone by connecting a series of lows. Likewise, establish a resistance zone by connecting a series of highs.

Filter signals

If the silver price goes to the bottom of the range, it’s the perfect time to buy silver. You can sell silver when the price moves to the higher section of the range. It’s also possible to lose tight stop losses when trading silver. This strategy lets you risk less and aim for a higher risk-reward ratio.

Implement risk management 

Be ready when the silver price exceeds the support and resistance levels. Use stop-losses and take-profits to determine the risk-reward ratio. This helps you decide if a trade is worth it before investing.

If you sell the silver at the resistance level, the stop loss can be placed above it. Likewise, you should place the stop loss below the support level if you buy silver.

Tips for trading silver

You can use these steps to make your silver trading journey easier:

Choose a silver market.

There are many silver markets available for speculation, including:

Silver bullion: This is the traditional silver investment technique. Buy actual bars and coins that must be stored and insured. Purchase Silver Bullion from ISA Bullion by creating an account with us.

Spot silver: The spot price is the price of silver at a particular point. Buying it means the asset can be exchanged and delivered immediately. This market lets traders get price exposure without owning the commodity. They can then sell the commodity once it reaches a predicted price point and make a profit. 

This is a highly lucrative trading style and can be done directly via the ISA Bullion app. To start spot trading → sign up with ISA Bullion today. 

Understand the relationship between gold and silver

Track the relationship between gold and silver using the gold-silver ratio. It shows the amount of silver needed to buy an ounce of gold. For instance, if the ratio is 20-1, it takes 20 ounces of silver to buy an ounce of gold. Conversely, the ratio narrows if silver’s value increases and vice versa.

The ratio changes are a good indicator of opportunities to buy silver. A high ratio means it’s a good time to buy silver because it is cheaper than gold. However, the price ratio is no longer fixed and is based on the uses of each commodity.

Understand what moves silver prices

Many factors determine silver’s value. Demand and supply are the primary drivers, but daily use is also key. For example, the metal’s conductive and anti-bacterial properties make it useful in LED chips, batteries, water purification, dentistry, and medicine.

Economic performance and political stability affect the commodity’s worth. In periods of economic growth, silver reduces in value as investors turn to other assets. There’s also increased demand from consumers who need luxury goods like jewelry.

But, silver retains its value in periods of economic decline. This makes it the first choice for investors as opposed to paper currencies.

Start trading silver with ISA Bullion.

After reading the blog, we believe you’re ready to trade Silver with our suggested techniques. But you need the right platform to advance your trading portfolio. 

At ISA Bullion, we’re committed to providing the best access to Gold & Silver trading instantly & Silver trading instantly. Start trading your physical silver bullion today and reap the benefits of having a precious commodity in your portfolio.

Open an account today and improve your finances by trading silver. To start trading commodities, download the ISA Bullion app for iOS and Android from here.