For anyone keeping track of the precious metals outlook, it’s relatively obvious that investing immediately is a wise decision. Of course, this is true for virtually any investment, thanks to the magic of compounding interest. The sooner you invest, the sooner you’ll realize gains. The more gains you realize, the more you’ll have to reinvest and continue growing your wealth.

The precious metals outlook, though, is more positive now than it has ever been before. At the same time, traditional forms of investing are on shakier ground. Economic experts are split between predicting unprecedented future growth and unparalleled future losses. Investors are also evenly split on precious metals, but in a much different way.

The Current Debate Surround the Precious Metals Outlook
There is virtually no expert predicting substantial losses for those capable of buying and holding precious metal assets for the long term. Doing so would be counter to historic data tracking the value of precious metals for centuries. The value of gold, in particular, has been shown to remain at least stable from one year to the next, after accounting for inflation.

What this means for investors is that gold is a solid hedge against inflation. Clearly, stuffing your cash in your mattress will result in a slow loss of purchasing power. Investing in the stock market, or other traditional investments, is riskier than it ever has been before. Because of this, those hoping to preserve their wealth over the long term are turning to precious metals more and more frequently.

However, realizing that precious metals won’t lose any significant value in the near future doesn’t qualify them as a sound investment. So, what does?

How the Economy Will Affect the Precious Metals Outlook for Gold, Silver, Platinum and Palladium
There are a number of things that could affect the value of the four most popular precious metals. Primarily, future economic difficulties will cause the values to increase noticeably, in a short period of time. While no one can say for sure that the economy will collapse, only a fool would predict that no future economic “scares” could take place.

What’s interesting and worth noting is the fact that the stock market is incredibly susceptible to speculation. The smallest piece of bad news about a specific stock can result in a tidal wave of stocks being sold. Once this process begins, it takes quite some time for things to stabilize and return to normal. In the mean time, the overall value of the market decreases rapidly. The mainstream media reports it, and even more investors jump on the bandwagon.

Every time this happens, a surge of new investors turns to precious metals. This activity increases the demand. Since precious metals maintain a relatively fixed supply, this has an upward impact on the price of precious metals. Fast, noticeable gains are the result.

Even though no one can predict future economic collapse with certainty, only a fool would claim that similar activities wouldn’t take place in the future. Because of this, it’s virtually guaranteed that anyone holding a position in precious metals will benefit.

In summary, there are two things dictating that investors should take up a position in gold, silver, platinum, or palladium as soon as possible. The first is the long-term evidence supporting precious metals as a hedge against inflation. Those who are invested in them will be able to preserve their wealth, regardless of what happens in the global economy.

The second is the virtual guarantee that an economic scare causes armchair investors to turn to precious metals in droves. Both of these combine to provide an almost constantly positive precious metals outlook.