There appear to be many positive indicators in the precious metals market. As the mining industry stabilizes in producing new volumes of gold, palladium, platinum and silver, there seems to be no end in the amount of interested buyers in the precious metals commodities market. The recent uptick of worldwide economies has begun to generate a faster production line in many industries that use gold, palladium, platinum and silver.
The Gold Market
Just as predicted, the gold market has finally begun to stabilize as it enters into its latest round of a bear market. Nearly all financial experts agree that the recent dip in the gold market has finally run its entire course. This is a result of many worldwide economies finally managing their financial crises much better. As the commercial banking industry becomes more solvent, and global interest rates slowly climb upwards, there is a direct reaction to the gold market.
The spot price of gold has long relied on investors coming to the market as a way to hedge against inflation. However, now that economies are stabilizing, industries are gearing up and purchasing this precious metal in large volumes. Without new product coming to market, supplies are decreasing while demand is increasing, causing the price to rise. The identical circumstances that initially drove the price of gold to its all-time highs have once again emerged. Because of that, financial advisors are indicating a thumbs-up approach in investing in the precious metals market, especially gold.
The whipsaw action experienced by investors has scared many out of the precious metals market. However, the recent stabilization of gold, palladium, platinum and silver has brought many more commodity speculators to the market. With no end in sight of the Federal Reserve lowering its extremely low interest rates, gold is still seen as the opportune investment as an inflation hedge.
The Silver Market
Strong or weak, thin or fat, the silver market has always maintained its value. It is the most widely used precious metal in the world, even when world economies are unpredictable. The spot price of silver has always fluctuated, but appears to be stabilizing, and moving higher. As the bear market in all precious metals continues to react favorably to a strengthening economy, many experts believe that the future of silver is getting back on track of where it was just a couple of years ago. Because of that, the price of silver is expected to reach all-time highs over the next 24 to 36 months.
The Palladium and Platinum Market
Still holding its own, the platinum market continues to maintain its value higher than the spot price of gold per troy ounce. Both palladium and platinum are essential components in the automotive industry, because of their anti-rust properties in the manufacturing of catalytic converters. Because of that, the precious metals market continues to rise in value. The worth of palladium per troy ounce is expected to reach an all-time high of nearly US $900 over the next couple of years.
Many investors are turning to physical ownership of platinum, gold, palladium and silver. They are purchasing bullion bars and coins along with numismatic coins as a store of wealth for the future. There are significant advantages to owning the precious metals. The physical assets are not affected by direct regulation and government intrusion, and can be handed down to the next generation easily.
The precious metals market offers the investor the opportunity to maintain their wealth, while having assets close at hand. Gold, palladium, silver and platinum bullion bars and coins can easily be converted into cash nearly anywhere in the world. They offer a significant investment tool to any investor eager to diversify their portfolio.