The global economy is in a recession, and the recession is showing no signs of loosening its grip any time soon. For this reason, many investors have become frustrated. Uncovering low risk investment opportunities that can still be profitable seems nigh unto impossible. Fortunately, there is a viable solution. Investing in precious metals has now become the de facto course of action for wise investors.
When an investor thinks of investing in precious metals, they most often think of gold and silver; however, these are not the only two options available. Two lesser-known options are palladium and platinum. While these two types of metals maintain a smaller share of the precious metals market, they hold a considerable amount of investment profit potential. In the last ten years, the prices for these two metals have increased considerably.
Holding Your Investment
An investor who is willing to hold onto their investment of precious metals for 3-5 years is guaranteed to experience a decent return on their investment.
Each of the primary four precious metals differs in value in the global market; however, it is supply and demand that is going to determine the actual price of an investment or the return an investor will see on their purchase. The factors that affect supply and demand include the particular manner in which the metal is used, its levels of scarcity and rarity, and any additional intrinsic values that may be attached to it.
Platinum is a prime example of the laws of supply and demand. Currently, it is among the most expensive precious metals to invest in; however, its prices vary greatly from one market cycle to the next. Palladium and silver operate in a similar manner. For those who are looking for a safer investment, gold is the go to option. The global prices for gold are primarily affected by its level of rarity and the intrinsic value it contains.
One of the primary reasons why investing in precious metals has become so popular in recent years is because it is near immune to the effects of the recession. Multiple sources have reported that, since the onset of the economic recession, private investors have been entering the precious metals market in droves. After the damages caused to the real estate market during the early years of the recession, investors are now looking for a safe haven for their cash reserves, and they are turning to the precious metals market.
The value of the U.S. dollar has declined in recent years, and the economy of Greece has gone under; however, precious metals continue to retain their value. An increasing number of financial experts and planners are encouraging their clients to take advantage of these investment opportunities while they exist. Stocks, mutual funds, real estate, and other forms of investments can bottom out, but the individual who diversifies their portfolio by investing in precious metals will be providing themselves with a hedge of protection during tough economic times.