Which cards are best to trade?
By David A. FahrentholdAP/Reuters – The latest trade cards to hit the market have become more and more popular, and many traders are willing to pay high premiums for them, according to analysts at Morgan Stanley and BNP Paribas.
The cards are the latest attempt by banks to make it easier for people to trade in precious metals, and while there are currently fewer than 1,000 available, they are becoming increasingly popular, analysts said.
In a survey of more than 2,000 people who trade precious metals and gold online, nearly half said they’d pay more for a card than they would for a real one, according in a report released Tuesday.
The card offers trading on a range of metals, including gold, silver and platinum, with the option to buy or sell at a discount.
The cards are typically issued by brokerage firms, but can be purchased online or from card companies.
Morgan Stanley and Barclays agreed that the cards were better suited for trading in gold, saying that gold is the most popular of the metals for trading.
Gold is a precious metal that is highly concentrated in a small number of precious mines, making it a valuable commodity for financial markets.
The value of gold has been increasing for years, but has fallen slightly over the past decade, as more and better-known producers have been forced to pay higher prices for gold, the banks said.
Morgan and Barclays have been using their own proprietary trading systems, called “buzz traders,” to market the cards.
The card systems can only be accessed from a computer and require an internet connection.
Some cards offer trading for two weeks, but some offer up to six months of trading at no extra cost.
Morgan, the global investment bank, said that trading cards are likely to increase in popularity over the next two years.
The popularity of these trading cards is likely to be driven by the fact that the prices they charge for them are generally lower than those offered by traditional trading platforms, the analysts said in their report.