# Metals Markets > Metals markets include precious metals like gold and silver and industrial metals like copper and aluminium. Learn the exchanges, drivers and how metals are traded. Source: https://learn.tradelabsai.com/commodities/metals-markets/ Track: Commodities · Level: Intermediate · Updated: 2026-10-03 Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice. Cite as: TradeLabs Learn, "Metals Markets", https://learn.tradelabsai.com/commodities/metals-markets/ Metals are divided into two broad groups. Precious metals, mainly gold, silver, platinum and palladium, are valued for monetary, investment and some industrial uses. Industrial (base) metals, such as copper, aluminium, nickel and zinc, are used in construction, manufacturing, electrical systems and batteries. Their prices respond to different forces: precious metals react strongly to interest rates and the dollar, while industrial metals track economic growth, especially in China. ## Precious vs industrial metals | | Precious metals | Industrial metals | |---|---|---| | Main metals | Gold, silver, platinum, palladium | Copper, aluminium, zinc, nickel, lead, tin | | Main exchanges | COMEX (CME), London OTC market (LBMA) | London Metal Exchange (LME), COMEX, Shanghai Futures Exchange | | Key drivers | Real interest rates, the dollar, safe haven demand, central banks | Global growth, China, supply disruptions, energy costs | | Investment demand | High (ETFs, bars, coins) | Lower | | Lesson | [Gold](https://learn.tradelabsai.com/commodities/gold/), [Silver](https://learn.tradelabsai.com/commodities/silver/), [Platinum and Palladium](https://learn.tradelabsai.com/commodities/platinum-and-palladium/) | [Copper](https://learn.tradelabsai.com/commodities/copper/) | ## The main exchanges - **COMEX (part of CME Group):** gold, silver, copper futures, priced in dollars per ounce or pound. - **London Metal Exchange (LME):** the global hub for industrial metals, with a unique structure of daily prompt dates up to three months ahead. In March 2022, LME nickel prices more than doubled in about a day amid a short squeeze, and the exchange suspended trading and cancelled trades, a controversial decision. - **London bullion market (LBMA):** the over the counter centre for physical gold and silver, with twice daily price benchmarks. - **Shanghai Futures Exchange:** a major venue for copper, aluminium and other metals, reflecting Chinese demand. ## What drives metal prices ### Precious metals - **Real interest rates:** gold pays no income, so higher real yields make it less attractive. See [Gold](https://learn.tradelabsai.com/commodities/gold/). - **US dollar:** a stronger dollar usually weighs on precious metals. - **Safe haven demand** during crises and geopolitical stress. - **Central bank buying:** central banks have bought large amounts of gold in recent years. - **Industrial use:** important for silver, platinum and palladium (electronics, solar panels, car catalysts). ### Industrial metals - **Construction and manufacturing,** with China consuming about half of global copper and aluminium. - **Energy transition:** electric vehicles, power grids and renewables use large amounts of copper, nickel and lithium. - **Supply disruptions:** mine strikes, ore grade declines, export restrictions, energy costs for smelting. - **Inventories** in LME, COMEX and Shanghai warehouses. See [Storage and Inventories](https://learn.tradelabsai.com/commodities/storage-and-inventories/). **Example: Copper as an economic signal** Copper is sometimes called "Dr Copper" because its price is thought to track the health of the global economy. During the 2008 crisis, copper fell from above $4 a pound in mid 2008 to below $1.50 by December as industrial demand collapsed. It then recovered strongly with China's stimulus spending in 2009. Traders watch copper alongside stock markets and bond yields for signs of growth. See [Copper](https://learn.tradelabsai.com/commodities/copper/). ## The gold silver ratio ``` gold silver ratio = gold price / silver price ``` The ratio shows how many ounces of silver buy one ounce of gold. It has ranged widely, from below 40 to above 120 in March 2020. Some traders treat extremes as signals that one metal is cheap relative to the other. See [Silver](https://learn.tradelabsai.com/commodities/silver/). ## Ways to trade metals - **Futures and options** on COMEX, LME and other exchanges. See [How Futures Contracts Work](https://learn.tradelabsai.com/futures/how-futures-contracts-work/). - **Physically backed ETFs** for gold, silver, platinum and palladium. - **Mining stocks,** which are leveraged to metal prices but add company risks. - **Physical bars and coins,** with storage and premium costs. - **Spread trades:** gold vs silver, platinum vs palladium, copper vs aluminium. See [Futures Spreads Explained](https://learn.tradelabsai.com/futures/futures-spreads-explained/). ## Risks - **Volatility:** silver, palladium and nickel can move very sharply. - **Squeezes:** concentrated positions can cause dramatic price spikes, as in nickel in 2022 and silver in 1980 and early 2021. - **Policy risk:** export bans, tariffs and sanctions (for example on Russian metals). - **Liquidity** in smaller metals. ## Frequently asked questions ### What is the difference between precious and industrial metals? Precious metals such as gold and silver are valued for investment and monetary uses, while industrial metals such as copper and aluminium are mainly used in construction and manufacturing. ### Where are metals traded? On exchanges such as COMEX, the London Metal Exchange and the Shanghai Futures Exchange, and in the London over the counter bullion market. ### What drives metal prices? Precious metals respond to real interest rates, the dollar and safe haven demand; industrial metals respond to economic growth, China and supply disruptions. Next, study the most famous metal in [Gold](https://learn.tradelabsai.com/commodities/gold/). ## Continue learning - Next lesson: [Gold](https://learn.tradelabsai.com/commodities/gold/) - Previous lesson: [Gasoline and Heating Oil](https://learn.tradelabsai.com/commodities/gasoline-and-heating-oil/) - Related: [Gasoline and Heating Oil](https://learn.tradelabsai.com/commodities/gasoline-and-heating-oil/): RBOB gasoline and ULSD heating oil futures track refined fuel prices. Learn the contracts, what drives them, seasonal patterns, crack spreads and who trades them. - Related: [Gold](https://learn.tradelabsai.com/commodities/gold/): Gold is a safe haven and inflation hedge driven by real rates, the dollar and central banks. Learn gold futures, ETFs, key drivers and how traders approach gold. - Related: [Silver](https://learn.tradelabsai.com/commodities/silver/): Silver is both a precious and an industrial metal, which makes it more volatile than gold. Learn silver futures, the gold silver ratio and famous squeezes. - Related: [Copper](https://learn.tradelabsai.com/commodities/copper/): Copper prices track global industry, China and the energy transition. Learn copper futures on COMEX and LME, supply and demand, inventories and key drivers. - Related: [Platinum and Palladium](https://learn.tradelabsai.com/commodities/platinum-and-palladium/): Platinum and palladium are rare metals used mainly in car catalytic converters. Learn their concentrated supply, demand drivers, futures and big price swings. - Related: [Commodity Market Fundamentals](https://learn.tradelabsai.com/commodities/commodity-market-fundamentals/): Commodity prices are driven by physical supply and demand, inventories, the dollar and weather. Learn the main sectors, key drivers, participants and data.