Your company wants to move into the industrial metals commodity market. Your colleagues from other firms have made money in precious metals trading. Now you need to learn the ins and outs of this market to increase company profits.

You have a general idea of what factors cause the prices of precious metals to move up and down. However, it doesn’t hurt to get a refresher course. Acquire metals commodity market education and training through the following methods:

1. Take courses in order to become familiar with precious metals trading.

2. Read books so you can learn how to buy and trade precious metals.

3. Become familiar with the industrial metals commodity market via webcasts or podcasts.

Action Steps
The best contacts and resources to help you get it done

Learn about precious metal trading through courses

Taking courses should be your first step in getting metals commodity market education and training. Courses on the metals commodity market focus on the fundamentals. You'll not only learn how this market works, but what causes the prices to change. You'll also learn about the risks before you decide to purchase precious metals. Another area you'll learn about is regulation and how it can affect this market.

I recommend: New York Institute of Finance offers a two-day course that focuses on the industrial metals commodity market. You’ll learn about the basics of trading metals. Research and Markets also offers an introductory course on the metals futures market. You’ll learn about supply and demand, the players in the market, and strategies in metals trading.

Learn how to buy and trade precious metals through books offered on the Internet

Like courses, books can be great for obtaining metals commodity market education and training. They will cover supply and demand and you'll learn about trading strategies that work best with precious metals investing. For example, some of the strategies you will learn are spread or cash-and-carry trades. Books will explain how these work and when to use them.

I recommend: Powell’s Books has a book, Commodity Fundamentals: How to Trade the Precious Metals, Energy, Grain and Tropical Commodity Markets, that focuses on the basics of the industrial metals commodity market. You will learn about trading strategies. You’ll also want to check out Precious Metals Investing for Dummies. This book teaches you how to buy and trade precious metals.

Get metals commodity market education and training through webcasts or podcasts

Do you need to get more knowledge when it comes to a specific area of the metals futures market? Perhaps you want to improve your trading strategies. You've tested your methodologies, but they're not working. Watching a webcast or listening to a podcast can give you the solution. These educational methods are known for focusing on a particular area. You can learn valuable information that you might not learn in books or classes.

I recommend: B2Gold offers webcasts on metals futures. Podfeed also offers podcasts on the metals commodity market. Here, you’ll listen to technical analysis from professional traders and market analysts.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  To keep learning about precious metals trading, make an effort to attend conferences on the metals commodity market.

Investing in the metals commodity market can be lucrative. For one thing, precious metals have intrinsic value. This is a primary reason for adding precious metals to your business portfolio. Keep in mind however, metals trading can be risky and volatile.

Experts say you should have approximately 10 to 20% of your investments in tangible assets, such as platinum, gold or silver. One major reason you should consider precious metals investing is to protect yourself during periods when the dollar falls. Like the stock market, it's important to know information on precious metals so you'll know when to buy and sell. You can find this information by doing the following:

1. Use the exchanges to monitor charts and news on precious metals.

2. Check precious metals indexes frequently.

3. Sign up with a metals dealer to purchase precious metals.

Action Steps
The best contacts and resources to help you get it done

Use exchanges to monitor charts and news on precious metals trading

Make a habit of looking at the exchanges to see how precious metals are doing. Exchanges will help you decide whether you should invest in gold or invest in silver, for example. Charts give you a visible picture of the metals commodity market, helping you to see if it's in an uptrend or downtrend. Use the charts to help you decide when to buy and trade precious metals.

I recommend: The New York Mercantile Exchange is the largest commodity futures exchange in the world. You’ll want to look specifically at its COMEX Divisions, which focus on gold, silver, copper, aluminum, and precious metals from other countries. If you’re looking to trade in metals futures, you’ll want to look at the Chicago Mercantile Exchange. The exchange has the first electronic and global trading platform, CME Globex, for metals futures.

Study precious metals trading indexes

Studying the precious metals indexes can also give you good ideas of what's happening in the industrial metals commodity market. Examine the index of the top-producing precious metals companies. Studying the index can give you an overall picture of the industrial metals commodity market.

I recommend: Dow Jones Precious Metals Index consists of U.S. trading stocks of companies that specialize in precious metals, including platinum, silver, and gold. The index has data on these stocks available back to December 31, 2000. If you're looking to invest in gold globally, you'll want to check out the Gold-Eagle Gold Fund Index. This index consist of eight precious metals mutual funds from different countries, including South Africa, Australia, Canada, and South America.

Purchase precious metals through a dealer

Open an account with a precious metals dealers firm. Not only can you open an account and trade, but you can take advantage of the firm's research tools and news on the markets. These firms publish news on precious metals market so you can decide if this is the right time to buy and trade precious metals.

I recommend: Consider Monex Precious Metals, which has been in business for more than 40 years. Its Monex Atlas Account is designed for short-term precious metals trading, especially during periods when silver's price is volatile.  You'll also want to consider Blanchard and Company, the largest precious metals dealer in the U.S. The company employs highly-skilled professionals who will help you with your precious metals investment decisions.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Save your charts so that you can see trends in precious metals investing and determine when you want to buy or sell.

Though the value of a government-backed currency may rise and fall, precious metals are thought to have staying power. But if you don't like the idea of stockpiling ingots of gold in your basement, you can always trade metals futures. Futures contracts, or agreements to buy a commodity at a fixed price, are traded on commodity exchanged around the world each day. If you decide to venture into physically purchasing precious metals, there are some key terms of which you should be aware before you buy.

Action Steps
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Bullion and bullion coin

Bullion is the bulk form of a precious metal; it may take the shape of an ingot, bar or plate. Industry standards dictate that bullion must be 99.5 percent pure. Bullion coin may be stamped with a value or image, but its worth is determined by the market price of the metal from which it is made.

I recommend: Monex Precious Metals sells bullion bars. Blanchard sells gold bullion coin.

Coin or coin of the realm

Coin is currency, issued for the purpose of trade. It is a stamped piece of metal with a standard value and fineness. Coin of the realm is currency issued and backed by a government and its value is legally regulated.

I recommend: CMI Gold & Silver offers a rundown of the difference between bullion and coin, and the benefits of investing in each.

Commodity Exchange, Inc. (COMEX)

Commodity Exchange, Inc. (COMEX) is a division of the New York Mercantile Exchange (NYMEX), the largest commodity futures exchange in the world. Massive amounts of commodities, including metals, are bought and sold on its floor during business hours, and even more are traded online overnight. NYMEX is regulated by the Commodity Futures Trading Commission.

I recommend: You can visit the NYMEX website to find out more about trading gold, silver, copper and aluminum.

Troy ounce

Heavier than a standard ounce of produce at the grocery store, a troy ounce is equal to 30.1 grams, 480 grains, or 20 pennyweights. It is the standard unit used to buy and sell metals on the commodity market.

I recommend: Lynn Coins & Sports Card Shop has a detailed definition of the troy ounce, its equivalencies, and useful conversions.

Precious metals

Precious metals include gold, silver and the platinum group: palladium, iridium, rhodium, osmium, ruthenium and platinum.

I recommend: You can get live and historical charts that follow the value of all precious metals at Kitco.

Fineness

Fineness refers to a precious metal's purity, measured in parts per thousand. You'll find an assay mark on many precious metals to guarantee fineness, set there by an assayer.

I recommend: Get the official definition of fineness, assay and many other metal commodity market terms at Platinum Today.

Precious metals investing can be rewarding and lucrative. However, you must know how this market works. One of the first things you will want to become familiar with is the different metals that make up this market, such as palladium and platinum.

Political and economic factors can impact the prices of precious metals. For example, people tend to invest in gold if there is high inflation or economic uncertainty. When it comes to metals commodity market for beginners, do the following:

1. Become knowledgeable about the metals commodity market.

2. Conduct your research before you do your precious trading.

3. Learn about the various choices before you buy and trade precious metals.

Action Steps
The best contacts and resources to help you get it done

Learn all about the metals commodity market

Before you buy and trade precious metals, you will want to learn about the different metals that make up the market. The industrial metals commodity market does not just consist of gold and silver, but less well-known metals, such as iridium, osmium, and rhodium. Learning about the different precious metals will help you with your precious metals trading.

I recommend: Investor Glossary provides a comprehensive definition of the precious metals market. This website is a good resource for metals commodity market for beginners. You will read about what are the major precious metals versus the less popular metals. Learn all about rhodium by visiting Precious Metal Investment. It provides in-depth information, such as its chemical symbol and characteristics.

Learn more about precious metals trading through research

It's important to research the metals in which you want to invest. An online brokerage firm is a great resource. Online brokerage firms have in-depth information about precious metals, such as how supply and demand affect their prices. You will learn what exchanges the precious metals trade on, such as the New York Mercantile Exchange and the CME Group. Online brokerage firms also will teach you about fundamental and technical analysis, which will help you with your metals trading.

I recommend: Sign up with Lind-Waldock so that you can learn how economic factors from different countries can impact the prices of precious metals. The Bullion Desk also provides comprehensive research on precious metals. You can obtain reports, study charts, and read news.

Understand your options about how to buy and trade precious metals

Now that you understand the precious metals market, you will want to learn how to invest in precious metals. You have several options. One way that you can purchase precious metals is through a company. You can also purchase metals futures by trading on exchanges.

I recommend: FGI Trading Group shows you the different ways about how to conduct precious metals investing. This company also defines the difference between precious metals and base metals. Amerigold shows you how to invest in gold; you can purchase gold through this company.