Commodities that transact in huge volumes in the commodity market are quite diverse. They range from agricultural products to industrial goods. However, from time immemorial, precious metals have played an integral part in these transactions. A significant proportion of commodity trade finance goes towards facilitating the trade of precious metals.
Gold

Gold trades in bullions and fetches very high international prices. It also features greatly in commodity trade finance. What is astounding about gold is that it has not lost the inherent value associated with it. Generations have utilized gold either in making payments or in other ways just for its value its. How much is the value of gold? This question greatly challenges companies that specialize in commodity trade finance. For instance, the price changes for an ounce of gold have tremendously increased in the last 30 years. Thanks to the commodity trade finance, gold is currently trading at very high prices. Inflation patterns rarely affect gold, a thing that makes it very distinct.
Silver trading
This precious metal is also in high demand. Silver fetches lower prices in the international market as compared to gold. This makes it more attractive to brokers who specialize in precious metal transactions. The price of silver does not oscillate like that of gold but has remained stable over the last 10 years. In commodity trade finance, very small measurements called ‘ticks’ quantify the change in silver prices. Silver also withstands inflation market shocks, a thing that makes it feature heavily in commodity trade finance.
Other metals that one can get financing from commodity trade finance companies are steel, diamond and platinum. Platinum surpasses gold in valuation and because of its many uses as compared to gold. It is also more durable. This makes it a very important contributor to the commodity trade finance.