Making a Prudent Precious Metals Purchase


It is no secret that precious metals have played a pivotal role in many civilizations for thousands of years.  The ancient Egyptians were borderline obsessed with this precious yellow metal, and not a lot has changed on a global scale.  Today, people are still clamoring to get their hands on this lustrous commodity, as it represents true wealth and value.  When you have gold, you know you have real money that will inevitably grow over time.

Today, gold investing remains one of the easiest and safest investment vehicles out there.  While it is possible to buy, sell, and trade ETFs and mine shares like stocks, most people prefer to do it the good old fashioned way – buying and hoarding gold.  Being able to hold a physical piece of gold offers much assurance.  For many, the whole point of gold ownership is that it has value in and of itself.  Instead of relying on pieces of paper to determine your wealth, you can cut right to the source and own an object of extremely high value.

Although gold still remains the king of the precious metals, many are keeping their eye on silver as a new contender for most promising investment of 2013.  The past 5 years have seen extraordinary growth in the silver market, with 2012 spurting 23% alone!  This trend is likely to continue, as essential factors are pushing silver demand higher and higher.

Precious metals have many special properties that make them irreplaceable as industrial metals.  For example, gold can be hammered down so thin that it becomes transparent!  Precious metals are also the best conductors of electricity, making them ideal for use in electronics.  Precious metals are ductile, malleable, and resistant to corrosion as well.  Silver offers many of these properties, yet it costs a fraction of what you would pay for gold, platinum, or even palladium.  This is one of the main reasons why silver prices are on the rise.  Manufacturers are realizing just how useful silver is, especially at its price point.

Although the precious metals outlook for platinum and palladium may not be quite as obvious as gold or silver, the fundamentals tell us that we can expect a positive performance, barring some unusual circumstances.  Palladium and platinum tend to be affected strongly by the automotive industry, which uses them to make catalytic converters.  While this is not the only factor determining their worth, it is certainly a major one.  These two platinum family metals are certainly worth watching, and will add diversity to any financial portfolio.

The most common option for precious metals investing is to buy coins.  Coins are ideal because they can be purchased in affordable increments, they are collectable, and easy to store.  Precious metal coins contain significant value in a small package, making them convenient for saving.  For those who are interested in larger quantities, large bullion bars may be ideal.  As long as you are vigilant about prudent precious metals purchasing at all times, there is very little risk.  Talk to a reputable dealer about making 2013 your year for financial success.