Once again, the precious metals outlook for the upcoming year is looking bright on the horizon. Currently, with many worldwide economies only beginning to find some sense of stability, investors are looking to take advantage of generating even more profits off of gold, silver, palladium and platinum.
Historically, precious metals have been used as a way to display the wealth of many nations and as a way to prove individual wealth. Cultures of the past have minted coins out of precious metals to be used for trading. Many of the same cultures have produced jewelry out of silver and gold as a way to hold their wealth and pass it on to future generations.
Today, the precious metals outlook is on the increase. This is a result of the continuing interest in generating profits in the commodities market. The price of gold in the last 13 years has risen to be worth five times what it was at the turn of the millennium. Even the price of platinum is now worth more than the value of gold, per troy ounce. This is a result of an increased demand in many commercial markets that use the precious metal because of its resistance to corrosion and rust.
Gold continues to stay in high demand for a variety of reasons. Many manufacturers of electronic products use gold because of its conductivity properties when moving and managing electricity. Gold is extremely resistant to corrosion and rust, and also holds up against chemical reactions and intense heat. Commercially, its greatest demand comes from the jewelry industry.
However, it is the investors’ market that has made the biggest impact on the continuing upward price of gold. Investors are purchasing huge quantities of bullion bars and bullion coins, and storing the gold away for the future. Out of all the precious metals, the high price of gold makes it the ideal choice for storing wealth, and can be used in trade for bartering of goods, or converting it into cash in nearly any currency around the world.
The spot price of silver tends to fluctuate at certain times of every year. This is often a reaction to the commercial industries that use silver on their production lines. Silver is the most used precious metal commodity in the world. Even though it is worth significantly less per troy ounce than the other three precious metals, it has along rich historical past where the price has risen steadily and predictably.
The precious metals outlook for palladium is surprisingly bright. At a five-year low of roughly US $200 per troy ounce in 2008, it is now positioned at approximately US $750 per troy ounce and is expected to rise to nearly US $1000 per troy ounce in the next 24 to 36 months. This is a response to the automotive industry that is turning to palladium because of its anti-corrosion properties when constructing their catalytic converters.
Experts agree that the reason that the precious metals outlook for the upcoming year is looking so bright is that all of the efforts of the largest governments around the world to fix their economies have mixed results. Because of that, investors are still flocking to precious metals investing as a way to circumvent economic uncertainty and fight against inflation.
It is always important that every investor perform extensive research before purchasing any trading instrument. It is best to seek out reputable dealers that have a knowledgeable and skilled staff to help the investor meet their investment goals. For 2013 and the next few years, the precious metals outlook for gold, palladium, platinum and silver looks to be profitable.