Gold is hailed as the best metal when considering a precious metals investment outlook. It has a very long history of being a valuable precious metal and its value has been generally consistent over the ages. Dating back to ancient times, gold has been the go-to metal for trading, investing, and wealth.
Other benefits of gold when studying a precious metals investment outlook is that since much of the world’s supply of gold has already been mined, the value isn’t as affected by supply and demand or the market situation. It is more affected by hoarders and those who typically buy and sell gold.
Gold is very durable as well. This metal doesn’t rust and is useful as a conductor of heat and electricity. Most gold is bought and stored up because of the possibility of inflation and the prediction of political crises. When inflation raises prices on commodities, many investors enjoy the fact that they can turn to gold in order to trade for goods and services. Gold can also be traded during times of political unrest or war, when at times gold can be the only form of currency that retains high value.
The “Poor Man’s” Gold
Silver has been termed the “poor man’s gold.” This can be seen as both positive and negative. Silver is cheaper to purchase than gold, so those wanting to invest in precious metals but who don’t have much to spend can start with silver. However, silver doesn’t retain as much value as gold.
Silver is also more volatile than gold. The value of the metal fluctuates for many reasons. One reason is that silver is often used for more industrial applications, like smart phones, computers, electronics, tools, and more. Also, due to these industrial applications, silver is not seen as much of a sentiment like gold is.
Supply and demand affect the value of silver much more than gold. For example, silver used to be a component of photography film, but with the advent of digital cameras, this use for silver became obsolete, which affected the precious metals investment outlook for silver. In addition, the increase of appliances and other newer equipment rising up on eastern markets has caused the demand for silver to increase worldwide.
Silver isn’t typically a metal that would be smart to hoard, like gold. With fluctuating prices and the other industrial applications that silver can serve, silver can be more beneficial for fast trading.
The Rarest Metals
Platinum and palladium are rarer than both gold and silver and therefore are more valuable. The precious metals investment outlook for platinum and palladium is positive, but there are a few factors that can affect price.
Demand of course is the first thing to consider. Like silver, platinum and palladium both have high industrial uses. Automotive catalysts are one of the best-known uses for platinum and palladium, but they can also be used for jewelry, computer parts, and electronics.
Since so much of the platinum and palladium stores around the world are used in the automotive industry, the value is directly related to how well the automobile industry performs yearly.
While platinum and palladium can be found nearly everywhere around the world, it is extremely rare, and the most abundant sources are found in South America and Russia. The economies and tendencies of these regions can greatly affect the price and value of platinum and palladium.
The Future Precious Metals Investment Outlook
If one were to consider the precious metals investment outlook, it should be noted that gold and silver prices are currently lowering. However, the value of gold is promising and is expected to rise. Palladium though has been the top-performing metal for 2013.