In the words of that 80s song, the precious metals outlook is so bright, you have to wear shades. The reason? There is an ever-growing demand for precious metals in the manufacturing, medical and technology sectors. Substances like gold, silver, platinum and palladium are integral components to things you use every day, from your smart phones to your car. With the rise of both China and India as true industrial powers, more and more precious metals are needed to sustain the global economy, increasing the prices of these finite resources. This trend shows no signs of abating. This is the perfect time to invest in precious metals.
The Gold Standard
When you think about precious metals, your thought first turns to gold. Since ancient times, gold has been a measure of wealth across cultures and the foundation of the finest jewelry. Today, gold is prized in the technology sector as an extremely efficient conductor and a non-reactive element, making it indispensable in the world of electronics. Because of its great demand, the price for gold has topped $1,600 per ounce, an amazing 119% above its historic average. In terms of a precious metals outlook, this trend is only going to continue, as electronics manufacturers race to increase to the speed and capabilities of their devices for the consumer.
Platinum has become the premier symbol of status in our culture. It is viewed as the most luxurious of all precious metals and is the preferred foundation on which to set the highest quality gemstones. Even more importantly, platinum is the metal used to create the most advanced medical tools and devices. As medical technology continues to advance and first rate health care becomes more available to the masses in India and China, the appetite for platinum will continue to grow. Platinum has already risen 67% above its historic average over the past several years. Further, the precious metals outlook for platinum is even more optimistic, due to serious supply concerns emerging from South Africa, one of the world’s top producers of this miracle metal.
There is no better precious metal for capital conservation than silver. It has remained at a solid $30 an ounce all throughout the recent worldwide economic fluctuations. Silver is an invaluable commodity to possess in these uncertain times. While stocks rise and fall, and inflation begins to gain traction, your wealth can retain its value in silver. Further, recent discoveries have led to new methods of using silver in industrial processes. This, along with silver’s increased use in medical and dental devices, make the precious metals outlook for silver even more promising. Instead of just maintaining wealth, the rising value of silver is likely to grow wealth in the near future.
Palladium, the New Standard
Again, when you think about precious metals, palladium probably does not come to mind. Too bad. Palladium is the new rock star of the precious metals world, due to its ability to endure ultra-high temperatures and not react with air. It is the key component used in catalytic convertors. As automobile ownership per capita continues to rise, especially in China and India, more palladium will be needed in the market. Further, palladium is often preferred over gold in electronic circuitry and has applications in oil and natural gas refining. Even more exciting, emerging environmental technologies, such as fuel cell development and water purification systems, rely on it for their success. For these reasons, the price for palladium has risen over 125%. Indeed, the precious metals outlook for palladium, like gold, platinum and silver, is bright. Shades?