Precious Metals and Gems

There are four main metals that offer investors lucrative opportunities. While gold has traditionally been the most popular, platinum, palladium and silver are also great options that are worth considering. All of these metals have risen in price during the last decade, due to increased demand. The value of precious metals is tied to inflation and economic conditions, meaning that the past decade has seen fluctuation, rather than an undeterred increase. These market “corrections” may scare off some potential investors, but they are typical and should be anticipated by anyone serious about investing in precious metals.

One reason for the overall rise in value of precious metals is their use in technology and other industries. Gold is corrosion-resistant and conducts electricity well, making it an important component within a select niche of manufacturing. The real champions are platinum and palladium, which have a host of uses. One of their largest uses is in catalytic converters. With growth in the auto industry both at home and abroad, their demand should remain consistent.

Looking to the future, platinum could possibly outpace other precious metals due to its utilization in fuel cells. Its catalytic properties make it perfect for the devices, and as fuel cells grow in popularity, platinum will continue to rank highly as a precious metal. Those interested in investing in precious metals should keep a close eye on this development.

The prices of precious metals over the last five years underscore their volatility. Gold boasts a variance, from a high of $1,212 an ounce to about $413. During that same time, platinum has fluctuated from $2,252 to a low of $774. Palladium has gone from a high of $579 to $159. High production rates in the auto and technological industries should help these prices stay on the upper end of the spectrum.

Entrepreneurs should always do their due diligence before investing in precious metals. For savvy investors, they offer an exciting way to spread portfolio risk. Paper currency is facing increasing scrutiny and metals often present a safe investment with reliable demand.