All the major economies around the globe now tie there currency to the fiat monetary system. Because of that, it has never been more important to become involved in precious metals investing to survive the uncertainty of most of the world’s trading instruments.
The historical data involving the four top precious metals including gold, palladium, silver and platinum have reached historical highs in the last couple of years. However, many experts agree that these precious metals are yet to reach their expected highs because of the positive changes in the investment world over the last few months. Many investors are continuing to use the precious metals investing strategies as an effective safe haven for storing their wealth, and as a way to circumvent many issues associated with other trading instruments including bonds and stocks.
The Rising Demand for Precious Metals Investing
As many manufacturing plants around the world start to gear up for the stabilizing economy, there is a higher demand for precious metals, especially silver, platinum and palladium. Silver continues to outperform every precious metal including gold. Worldwide manufacturers utilize silver more than gold, palladium and platinum combined.
Oddly enough, many silver mines around the world have not increased their production, which is decreasing the supply, while the demand continues to rise. Even though silver remains at an all-time high of just over US $32 per troy ounce, it is expected to reach even higher in the next 24 months. Some experts believe it will reach as high as US $40 per troy ounce by the end of 2014.
While silver is a commodity that is often utilized in the manufacturing of industrial products, coinage, and other goods, gold is most often recognized as being the number one precious metal used in jewelry. This precious commodity has shown significant increase in value due to the high demands in China and India, which are not expected to change anytime soon. Just like the silver market, the production of gold has stabilized, even though the demand continues to rise.
The Need for Platinum and Palladium
There are numerous industrial applications for platinum and palladium. Their anti-corrosion properties provide the best opportunities when used in catalytic converters, medical equipment, and a huge variety of electronic components.
Because of that, the need for platinum and palladium continues to rise, especially as supplies are limited. Platinum is currently valued higher per troy ounce than gold, and palladium, that was only worth US $500 per troy ounce a few years ago is expected to reach as high as US $900 per troy ounce, in the next two years.
Holding the Physical Asset
Precious metals investing can offer a unique opportunity in that it allows investors to physically hold the asset. Investors have the opportunity to purchase bullion bars and bullion coins, and store them in a safety deposit box, or in a safe. Precious metals that are purchased and held are safeguarded from government intrusion and regulation. It provides the opportunity for the investor to hand out their assets to the next generation in an uncomplicated manner.
While it is not possible to use historical numbers in an effort to predict the future rise or fall of a specific precious metal, many experts agree that platinum, palladium, gold and silver are likely to rise in value in the next few years.
Even though all four major precious metals have risen significantly in the past few years, most experts agree that they are likely to continue rising in value over the next 24 months. There has never been a better time to become involved in precious metals investing.
