Tips for Investing in Precious Metals

The last six years haven’t been easy on anyone. While many lost their jobs or even their homes, everyone lost confidence in how to manage their finances and protect their future. Still, it’s important to save and necessary to put those savings into investments that will provide both future returns and protection from inflation. One of the most reliable options continues to be investing in precious metals. A new year brings new prospects. So, continue reading to learn about how you can make the most out of investing in precious metals in 2014.

Platinum Will Remain King

When most people hear about investing in precious metals, they think of buying gold. This is for good reason, of course. Gold is one of the oldest known metals, and even the least knowledgeable investor understands that it’s valuable. Up until the last century, gold was used to back the American dollar and many currencies throughout the world.

But it isn’t more valuable than platinum. Not only is platinum more rare than gold, it’s more rare than any other metal in the entire world. Ten times more gold is mined every year than platinum, but this doesn’t mean the white metal is in any less demand.

Platinum is valued for jewelry and as a catalyst in a number of important chemical reactions. One of these reactions helps fight air pollution. While many countries might start using more platinum for this reason, China will soon have no choice. The most populated country in the entire world has long been suffering from notoriously bad air quality and many analysts believe they will use massive amounts of platinum in 2014 in an attempt to begin turning things around.

Keep an Eye on India’s Investors

Like just about every country that sees a middle class grow within its borders, India has seen massive amounts of new investors in the past few years. And just like so many middle class investors before them, many have purchased large sums of gold in order to anchor their investment portfolios. But when your country’s population is well over a billion people, the amount of money your middle class invests tends to be proportionally large, as well.

In an attempt to keep much of that investment capital within the country, India’s legislators passed an unprecedented ban on importing gold. The problem is this still leaves silver, platinum, and palladium. It seems unlikely that their large middle class will ditch investing in precious metals altogether, so keep an eye out for which of the three remaining choices they favor and begin to buy fast.

Don’t Give Up on Silver

Silver has had an interesting last couple of decades. From 1990 to 2011, “poor man’s gold” increased in value by over 450%. For those 21 years, the precious metal was unstoppable. It has since fallen to 2011 level prices, with almost all of 2013 consisting of silver’s gradual decline.

It’s important to remember, though, that investing in precious metals is always a smart move over the long term. For this reason, you may want to take advantage of lower prices to build up your silver reserves.

Furthermore, many analysts believe silver may be on its way to another upward trend. In the ‘90s it happened because people severely undervalued the metal’s potential. These analysts believe the same thing is happening now. Keep in mind that silver is the most conductive of all precious metals. It’s also essential for the production of solar panels. These could be two important factors supporting silver’s return to glory in the coming years.

While investing in precious metals is a great option for consistent returns, the recession should have taught you a lesson in sure things: they simply don’t exist. Nonetheless, historically, investing in precious metals has proven to be an option that pays off. If you keep the above tips in mind, it’s quite possible that investment will pay off sooner rather than later.

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