One very sage word of investment wisdom would be to never allow panicked news stories to influence your investment choices. If you did, recent headlines would have probably scared you away from any reasonable amount of precious metals investing, and that would have been a blunder.
Since 2008 and 2009, millions around the world have been sinking enormous sums into precious metals investing. This is because silver, gold, platinum, and palladium are wonderful “safe havens” during any sort of economic storms. Usually, however, it is just one or two markets in turmoil, not almost all of them. This is why the prices for precious metals have literally skyrocketed in only a few short years.
Precious metals investing has become a major part of any overall strategy because the physical metals have become one of the few predictable and reliable vehicles. Interestingly enough, though precious metals investing was once viewed strictly as a long-term activity, there have been many stories of investors turning large profits from short-term investments too.
Understanding Demand
Let’s stop and consider just how and why these trends have developed. Firstly, we understand that a lot of economic troubles in all parts of the world have substantially increased the rate of precious metals investing. Buyers know that the metals hold their value and ensure that at least a portion of the portfolio is not going to “lose”.
Because things have not yet improved in most economies, however, a lot of investors are turning over ever-increasing portions of the portfolio to precious metal assets. This is because metals also turned into a growth investment thanks to the flood of global purchasing that has been going on for more than four years.
What many don’t realize is that the potential for precious metals to continue growing is very high. Though some headlines rave about bursting bubbles or inevitable declines, the reality is that precious metals producers really slackened their pace when the markets tumbled.
This break in the rhythm of production created a very distinct gap between the “above ground” supplies, the minted coins and bars, and the actual demands of the market, industry, and investors. In other words, someone is going to be left without a chair when the music ends. We all know that this forces everyone to rush around and seek out protection.
The Realities
Of course, the world of finance should not be compared to a children’s party game, but that is really what is happening right now where precious metals are concerned. Currently, the music is playing and investors, industry, and the financial markets are cautiously circling one another and eyeing those remaining stores.
They question when they should make their move. Unfortunately, everyone should be making a move because precious metals producers fell behind and have yet to catch up. As soon as any increase in industrial demand returns, it will make it painfully obvious that precious metals are scarce. Thus, there is a tremendous amount of potential for precious metals investments and now is the time to act.