Making Decisions Based on the Investment Outlook for Precious Metals

Making Decisions Based on the Investment Outlook for Precious Metals 5.00/5 (100.00%) 4 votes

For many generations, people have been inclined to keep jewelry and pass it down as valuable heirlooms as a way to protect family assets. It is arguable whether or not this is a better strategy than buying stocks, bonds or other investment vehicles. One of the reasons that this is a good strategy is because antique jewelry typically contains some type of precious metals.

The precious metals that are commonly found in jewelry include silver and gold, and in more recent years platinum and palladium have been used with higher frequency. In order to determine if the purchase of any of these metals is wise, it is important to look at the investment outlook for precious metals.

Choosing to Purchase Silver

Numerous new and experienced investors are drawn to silver because it is one of the least expensive of the metals. It is great for people who do not have a lot of start-up capital to spend, and those who want to invest in a commodity that has a lot of growth potential.

Silver prices have recently been just over $20 per ounce. When all of the precious metals saw historic rises in price after the recent financial crisis, silver was over $50 per ounce, but has since dropped back down to its more expected growth rate.

Due to rising industrial demand for this strong and conductive metal, many financial experts expect silver prices to increase by approximately twenty percent every year over the next decade. Silver provides some of the best evidence that investors should be optimistic when it comes to the investment outlook for precious metals.

Staying True to Gold

For many people, precious metal is synonymous with gold. This is because gold has long been the standard-bearer when it comes to rare precious metals. It has been used as a currency throughout much of history and is currently used today in jewelry, technology, tooth fillings, medical equipment and many other applications.

When determining the investment outlook for precious metals over the coming years, it is impossible to ignore the performance and projections for gold prices. Gold is one of the more expensive precious metals, but investors often choose it because it will reliably hold its value and tends to always gradually grow in price over the long-term.

Gold is currently experiencing a slight decline in price, as the values were inflated greatly during the recession. During turbulent economic times, investors flock to gold and other precious metals because they want to protect their assets from market instability. It is expected that gold prices may see continued decline for about a year before stabilizing and increasing once again. The long-term investment outlook for precious metals, such as gold, is nearly always positive.

Platinum and Palladium

Platinum and palladium are precious metals that often do not receive the attention they deserve. Platinum is one of the rarest of the precious metals; there is approximately 15 times more gold produced every year than platinum. As platinum is also one of the most durable metals, with many industrial uses, it is has very high and rising prices per ounce.

Palladium has many of the same properties and uses as platinum, but is slightly less durable and is less rare. Therefore, it is less expensive. Like platinum, palladium is seeing increases in demand from the auto industry because these metals are used to make vehicle emissions more environmentally friendly. In regards to the investment outlook for precious metals, platinum and palladium are each expected to be profitable choices for 2013 and beyond.