There has been a significant rise in popularity in precious metals investing, due to the historic highs that gold, silver, palladium and platinum have achieved over the last few years. Many new individuals that have never invested in precious metals before are attracted to the commodities trading market. Based on the strategies of the investor, there are numerous reasons why precious metals investing continues to rise in popularity.
Many individuals that are new to precious metals investing are often unaware that there are many other instruments that can be purchased other than gold coins. Gold, silver, palladium and platinum are available in a variety of products including bullion bars and bullion coins, along with numismatic products.
Investing in Silver
Out of the top four precious metals, silver holds the lowest spot price per troy ounce. However, that does not in any way diminish its value on the open market. Silver is used more than any other precious metal in industrial manufacturing and is in constant demand in the automotive, electronics, medical equipment and jewelry industries, along with others. Many experts agree that the demand for silver will double in the next coming years as many of the world economies continue to strengthen.
Silver, for millennia, has been cherished by nations and individuals and used as a tool for currency and trade. It is easy to manipulate and is highly malleable, though not as malleable as other precious metals, including gold. That is why it is used for jewelry, and other products including wiring and electronic components.
Investing in Gold
The highest percentage of precious metals investing involves gold. It is the ideal trading instrument. It has long been used to display national and personal wealth, and is often used for currency. Up until a few decades ago, the United States tied its currency’s worth to the value of the gold standard.
Like all precious metals, there is no way to engineer gold from other products. Because of that, there is a finite amount of gold that can be brought to the market. Many commercial industries are using high volumes of gold in the creation of mobile phones, computers and other devices, which has been a key factor in its rising price over the last couple of decades. Since the beginning of the millennium, the price of gold per troy ounce has quintupled.
Investing and Platinum and Palladium
Today, platinum is worth more per troy ounce than gold. This is a result of a higher demand of the automotive industry and other commercial enterprises. The price of platinum is expected to rise even higher over the next 24 months, making it an extremely popular investment for many individuals seeking to diversify their portfolio. Palladium is rising in value too, due to the automotive industry and other commercial enterprises.
The specific trends of precious metals investing work well to hedge against inflation. Historically, the precious metals commodities market seems completely unaffected by downturns in worldwide economies. However, they do tend to rise when the stock and bond markets flatten out, or reverse, when investors remove their money in volatile markets and move the funds into more stable ones.
Although there are numerous ways to invest in precious metals, taking physical possession is by far the best. Purchasing precious metals bars and bullion coins provides the investor full control over the investment. They require no maintenance, except for a place to be stored. They are offered in a variety of sizes from multiple ounces, down to fractions of an ounce. Currency numismatic coins are also available that hold their intrinsic and inherent value for the investor.
