How to Invest in Gold, Silver and Precious Metals: Part 2

by Monday, September 22, 2014

Why Invest in Precious Metals

precious metals trend
Although most commonly associated with jewelry and coined money, precious metals are actually far more valuable as industrial components. Various precious metals can: conduct electricity, control heat, maximize chemical properties, and so on.

We can’t function without GOLD

Much of the electronics industry relies on gold to function in many of its components, while platinum is an integral resource used throughout the medical field, computer and auto industries. In terms of raw materials and oil refining, palladium is key.

Aside from the intrinsic value held by these metals due to their widespread industrial purposes, investing in these metals serves as a protection from inflation. Considering that inflation is increasing globally, on the whole. The prices of precious metals will likely continue to appreciate against the dollar, so having a hold on metals makes a logical risk hedge. Thus, precious metals are a long-term investment that holds the ancillary benefit of appreciation.

The 3 Strategies to Investing in Gold and Precious Metals

In terms of your investment portfolio, there are three purposes that investing in precious metals serves:

  1. Strategic asset allocation
  2. Risk management
  3. Tactical asset allocation

    Determining the price of Precious Metal Part 3

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