There is a great debate going on right now in the world of precious metals. That debate has to do with whether or not to buy in. Some people feel very strongly that the recent price drop in gold and silver is a clear indicator to run away. Others feel just as strongly that the recent drop is a perfect chance to buy in and then watch assets go up. Which side is right? That is a decision you will have to make for yourself based on information you gather. Once you have learned a little more, you can determine if precious metals buying is right for you.
A Frightening Drop
Just a few years ago, gold reached its peak performance at almost $1,900 an ounce. That was an all-time high and it had thousands of investors rolling in dough that they made off coins and bullion. However, for the past two years, gold and the other precious metals has suffered a drop. In fact, it has dropped down to about $1,300 an ounce. That is pretty frightening, especially for people who came in late and have lost a substantial amount of money.
You really have to look beyond that drop to truly determine if you should get started with precious metals buying however. A good place to start looking is at the past.
The Cycle of the Past
There is an old idiom that the past repeats itself, and in many ways, this is quite true. The recent years’ issue is not the only time when precious metals have dropped in value. In fact, as recent as the 1970s, the same situation happened almost exactly. Gold dropped down to below $400 an ounce, which was comparable to today’s drop when you add in inflation. What happened after that past drop? The precious metal started climbing again to eventually break a record.
This is good news for those who are still interested in precious metals. While the value may be currently fairly low, they will go up again.
The Current Situation
You do have to consider the present when you are thinking about precious metals buying, though, and it can be a little frightening. If you purchased precious metals in the past few years, you have probably lost a good deal of money. You may even lose a little more before the prices start an upswing. If you are looking for short-term ways to get money, then precious metals is not the right choice.
However, if you are looking for a long-term investment, then don’t run away. Instead, look into the future. When you are trying to build up a portfolio that you can depend on when you reach the retirement years, then there is more potential than you may realize in precious metals like gold, silver, platinum, and palladium.
What Should You Do?
Now that you know a little more, you have to start thinking about what you should do. Should you buy more precious metals or should you run to the hills? This is a question only you can answer. Precious metals buying is not a get rich quick scheme. It is a long-term investment that can pay off in the end. If you are building a retirement portfolio, then you can’t go wrong.
Precious metals buying is still a viable option despite the recent drop in prices. While there are naysayers who seem to think that gold and silver, platinum and palladium are the wrong way to go, there is very clear evidence that points to the contrary. All that you need to do is determine if you are ready to start building a portfolio for your future.