While a lot of investors lost everything when the economic downturn hit the United States, some smart investors came out just fine. This is most likely due to the fact that in addition to their other forms of investments, these smart investors chose purchasing precious metal investments. Precious metals are generally thought to be immune to devaluation of the US dollar and their value tends to go up during times of economic turmoil. Investing in precious metals can be a very smart way to protect an investment portfolio, if it is handled correctly. No one should rush into purchasing precious metals or any other forms of investment. It takes research and proper strategy to properly use precious metals as part of a portfolio.
Gold is the ideal precious metal to own when economic times get tough. Gold not only has intrinsic value, it is also in high demand these days. Gold is being used in a number of different manufacturing processes and in the production of many high tech consumer products, which makes it a high demand asset. Gold also retains its price value even when monetary currency falls. Over the last decade the price of gold has gone up nearly 300%. So, while the US dollar is falling, gold remains steady and in demand. Finding new sources of gold is not easy either, so while the demand is high the supply remains limited. This also helps to ensure that price of gold will continually rise.
Silver is a precious metal that can be bought for less than the price of gold. This makes it a favorite precious metal for investors with a limited amount of money to spend. The value of silver also increases during recessions and like gold, it has shown a continuous rise in value over the last decade.
Platinum is not as well known in the investing world, but it is still a very good form of investment. Platinum is used in a variety of commercial products these days, including in auto parts, jewelry, fuel cells and in computers and medical devices. Because it is so useful platinum is always in high demand and its value is reflected accordingly.
Although this precious metal is even less known than platinum is, experts in investing in precious metals recognize its worth and value as an investment tool. This is a relatively new form of precious metal, having just been discovered in 1803. Palladium is used in many of the same ways as platinum is, but it can also be used the refining of oil. This means that palladium is highly demanded and worth quite a bit in value.
Why Precious Metals?
Investing in precious metals makes sense. They hold value when other forms of investment lose value. They are in high demand but their supply is limited. The future value of precious metals is likely to skyrocket. Precious metals have intrinsic value and can be used as commodities. There are other reasons choose precious metals as well, but these are the main reasons.