Insider Guide to Better Precioius Metals Investing

Insider Guide to Better Precioius Metals Investing 5.00/5 (100.00%) 5 votes

There is no denying the benefits available to those involved in precious metals investing. Long-term gains are possible even with the stock markets being highly volatile. There is a concern with many investors when looking at the individual metals and how volatile their prices are as well, but a closer look will show that each of the metals has their own opportunity as a diversification opportunity for savvy investors.

Gold Investing Facts

Power and wealth have historically been determined by the amount of gold an individual, or government has. The reason why this is important for precious metals investing is because of the position that gold has in the hearts and minds of the population. Gold has been used as a currency in just about every major civilization and is still coveted by many when the paper currency has lost its value and inflation rears its ugly head.

Mining stocks for gold are becoming even more valuable as the demand for gold is on the rise. Even without consideration to the short-term investment opportunity, gold has been enjoying a rise in popularity for more than just as a shiny metal. The medical community and the electronics community have been appreciating gold for use in their devices. In addition, gold stores are being built up by national banks to protect against economic disruptions, making gold a good idea for precious metals investing while the prices are low.

Silver Investing Makes Sense

As long as gold has been used as a currency, silver has been right there at its side. It has been valued less than gold, but that is only because it does not enjoy the same physical attributes and there is considerably more silver available in the world than there is gold. However, silver has an advantage over gold in that it is valuable as more than just a commodity for currency and jewelry.

Silver has been enjoying an important place in precious metals investing because it is used more often in industrial purposes that gold can ever hope to be used. Silver’s lower price makes it more attainable and easier to use in more applications. The price of silver is expected to rise as high as $125/ounce in 2014.

The Growing Popularity of Platinum

In the last 200 years, platinum has been increasing in popularity. The current value of the metal is driven not only for its relative scarcity, but also because of its high demand. Platinum is mined mainly in South Africa and Russia and is in extremely short supply. It normally trades at a higher price than gold making it an interesting precious metals investing opportunity.

The gain in the economy means that the prices for platinum are going to rise. As more people are buying cars, the use of platinum in catalytic converters will mean that the already high demand will continue to grow, while the production continues to drop. This will create a significant increase in the price of the metal.

Never Forget about Palladium

The least talked about of all the precious metals investing opportunities is palladium. This can be a costly mistake as palladium can actually provide a very big return on your investment. Along with being very attractive when used in jewelry, palladium has many of the same physical and chemical attributes as platinum. It has industrial applications because it is a good metal for making catalytic converters as well as for more efficient motors. As the production of the metal increases, the demand will continue to outpace it. This will create an opportunity for anyone invested in this particular metal.