Is Precious Metals Investing a Means to Acquire Wealth

There are 86 precious metals with gold and silver being the most popular of the precious metals. Precious metals investing has long been a means to acquire wealth. Investors can invest in many different forms of precious metals. For example, gold and silver can be invested in through the forms of jewelry, coins, bullion bars and ingots, all of which have shown to hold their value, even in a declining economy.

Because of different applications precious are used for in various industries, there is a high demand for precious metals. Automotive makers use platinum and palladium in automotive parts like catalytic converter.

Palladium

Palladium is precious metal with the majority of the metal being produced in Russia. South Africa also produces a small amount of the metal. The metal was originally produced in coins and bullion for investors; however, the majority of the coins and bullion were melted down for industrial use. Today, production of the coins has once again started. While palladium is among precious metals investing to be involved in, gold and silver are still the choice of investment.

Gold

Gold is the most sought after precious metal mined from below the earth’s surface. It is also the most expensive and not all investors can afford to invest in gold. The cost is nearly fifteen hundred dollars a troy ounce.

Silver

Investors can get invest in silver for about $20 a troy ounce, which makes silver a very attractive metal in precious metals investing. With pricing lower than most of the precious metals, silver is a start for many investors. Silver mining is down compared to the mining of gold, but industry sources claim there is a surplus of supply. Silver produced by the earth is seventeen times more than that of gold. Silver has long been the favored precious metal to trade with a trading ratio of 15:1.

Silver and Gold Coins

While the price of silver and gold reflect one another, there is a dramatic difference in price. To invest in gold coins, the price of a gold American Eagle is $1400. On the other hand, the price to invest in silver coins, the price of a silver American Eagle is $24, a price that is affordable for many investors.

Is the Market Stable

To mine an ounce of silver, it costs about $20. Demand for silver has been steady; however, if the price should fall below the cost to mine, then producers may cut production or cut costs. In all reality, stability could be added to the silver precious metals investing market. Silver would continue to be mined even if it falls below.

Media has not presented precious metals investing in the best light recently. In fact, you might say you could be lead to believe that it is worthless to invest in the market. What you are reading is not necessarily a collapse, like it may sound, but a fall from historically high prices. There are different reasons for this fall.

Is Now a Good Time to Invest

No time is a good time to invest if you do not preform your research. There are variables involved in precious metals investing and to be a success, you need to understand the industry. There is plenty of information, and you’ll likely run in circles in the beginning, but the best advice is to get the best advice available. From one day to another, you’ll find that information changes, as the market is constantly changing, and you need to be intelligent and flexible and understand what you are doing.

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