Gold is one of the best metals to invest in when considering an investment in the precious metals outlook. It has been a valuable precious metal since ancient times, and its value has been generally consistent over the ages. Dating back to before the Roman Empire, gold has been the go-to metal for trading, investing, and wealth.
Other benefits of investing in gold involve the inherent value of gold, since its value isn’t as affected by supply and demand or stock market since much of the world’s gold is already mined and is currently being collected and hoarded by those already investing. It is more affected by these investors and those who typically buy and sell gold on a regular basis as shown by the precious metals outlook.
Gold is a very durable precious metal as well. Gold doesn’t rust and is considered to have high consumer sentiment. When inflation takes its toll on an economy, big or small, many investors turn to gold in order to trade for goods. Gold can also be traded during times of political struggles or war, when at those times gold can be the only form of currency that retains high value.
Many major countries like China and India, which have fast-growing economies, are beginning to buy more and more gold, which of course leads to higher demand for the precious metal. The price of gold is expected to increase by more than 30 percent in a long-term precious metals outlook.
Silver is typically cheaper to purchase than gold; however, silver doesn’t retain as much value as gold. Silver is also has a higher volatility than gold. The value of the metal fluctuates based on many market factors, because silver is often used for more industrious applications, like smart phones, computers, and more. Also, due to these less-than-glamorous applications, silver does not possess as much consumer sentiment.
Factors Affecting Price
As the precious metals outlook suggests, supply and demand greatly affects the value of silver. The increase of its industrial uses caused silver to be directly correlated to how those industries perform. Silver isn’t a precious metal that would be smart to hold on to for long, like gold, and its long-term investment probably wouldn’t bring about much profit. With often changing prices and the other industrial applications that silver can serve, the more practical application for silver outweigh its inherent value as a precious metal.
The price of silver was known to have dropped significantly this year, but prospects are positive for a significant increase in price in the next couple of years, perhaps even doubling in value.
Platinum and palladium are both very rare and are therefore more inherently valuable than the other precious metals. Demand for these strong and durable metals is high, especially as the automobile industry continues to grow, since both platinum and palladium are mostly used for automobile catalysts and other automotive parts. Platinum is also used for jewelry, computer components, and electronics.
Platinum and palladium can be found worldwide, and it is an extremely rare precious metal. The most concentrated sources are found in South Africa, South America, and Russia.
South Africa is one of the leading suppliers of platinum in the world, and due to troubling issues with platinum mines there, the supply has lowered more this year. The precious metals outlook for platinum shows that the price of platinum has continually increased in the last year. The same has happened to the price of palladium.
While it is important to consider prices of precious metals before investing, it is also important to note that, while prices fluctuate, these precious metals still retain much of their inherent value. Regardless of what a precious metals outlook may show, it is always smart to seek the advice of an investment advisor. These precious metals investment advisors know the market and stay updated on the latest market trends.