Skip to content

The Precious Metals Market: What you need to know

The value of precious metals in trade traces back to both their high status throughout historical times and their many uses in industry. In many early and tribal civilizations, precious metals, especially gold and silver, were used as currency. This status has carried over into modern times; while silver and gold are not directly used as money any more, they still carry a high perceived value. This is probably why they remain valuable trade commodities and are still pursued aggressively as investments.

Investors see precious metals as valuable because they are rare and also useful. Of course they are the major component in the production of jewelry. But beyond that, they are used in many different industries. This increase in demand directly impacts how precious metals are traded in the commodity markets.

In the commodity markets, precious metals are known as bullion and are only traded in bulk. Bullion can then be cast into ingots, also known as bars, or minted into coins. They come in a large variety of values. Their value is based on both mass and purity of the metal.

Since gold is a medium of exchange as well as a commodity in itself, it remains in high demand. Quality is a major factor in how valuable a given weight of gold is. Most of the demand, around sixty percent, for gold is in decorative art pieces and jewelry. The required amount of gold can only be produced if it is mixed with other non-precious metals such as nickel or copper. Pure gold is hard to manage since it is so soft and malleable. In addition to its use in decorative settings, gold is also used by the electronics industry for the production of computer chips. There are also medical and dental devices which require the use of gold.

Silver is actually more sought after for industrial use than gold. It is a better conductor of both heat and electricity than copper. However, silver is more easily available than gold, and can also be recycled in industrial use, meaning that gold remains more valuable on the commodity market. This is the reason for the high value of recycled gold from older jewelry and coins being advertised to the general public.

Precious metals continue to remain highly valued in the commodity market because they are unique. Many companies like Regal Assets are offering to sell some to individuals looking to diversify their portfolio. As of yet, there is no artificial substitute for these metals.

Playing the markets too risky? Try a gold IRA

There is absolutely no doubt in anybody’s mind that investing in the stock market is risky business. A few bad investments and you can lose a substantial amount of money. On the other hand, what is more exciting than making a serious return from some of the stocks you bought? There isn’t much that gives the same rush of adrenalin as turning a profitable deal. But picking a winning stock more often than not comes seldom and more of your picks are likely to be losers. That is why when you find a winner, you have to milk it for all it is worth.

What to do with the winnings?

But what do you do once you have turned somewhat of a profit on some of your stock picks? There is always the option to keep investing it in the stock market but wise investors understand that it is best to at least put away a certain percentage for either their retirement fund or a potential rainy day.

However, you can’t just let money sit in your bank account. The reason for this is that paper assets are subjected to the same economic forces as most other stocks and the value of that money can fluctuate and in more extreme cases, lose almost all of its value. Hyperinflation in the USA is no joke and the day (should it ever come) that the mighty US dollar plummets in value, those left standing with dollar bills in their hands will be disappointed to say the least.

But if not paper, what else is there that’s safe?

There is one asset that has maintained its value for as long as humans have been trading stuff from one another. That is gold. Across the many civilizations and across the duration of the time that humans have dominated this earth, gold has always been sought after. That is why it cannot lose all of its value and that makes it one of the safest investments around available to people.

Even paper currency started out as physical representation of gold but because gold coins were inconvenient, nations and economic powerhouses agreed that it was easier to trade paper instead the actual gold. It’s just a convenience thing, no more. Nowadays, people have the option to invest in a gold IRA if they want to diversify their retirement account and not have to rely on something as fickle as the value of the dollar bill.

Now it’s of course isn’t the best thing to own if you are looking for explosive growth in the value of your investments. But, whenever you do turn a profit, it could be a wise decision for you to put some of those gains into precious metals like gold or silver.

Billboards aren’t just for the side of the road

When you talk about billboards, most people just think about those big signs on the side of the road. But in reality, they are just a form advertizing, a static one at that. That means that it’s an ad that doesn’t move, just that it’s positioned in a place that people can see and react to appropriately.

But a new form of real estate is becoming more popular than ever, and that is the virtual real estate known as the internet. For example, the space that makes the search engine results is ripe for the taking if you know what you’re doing.  You build a website and “rank” it for a few months and once there, it will stay there for months or even years. One way to learn how to do that is through a program known as Google Sniper.

So what is the advantage of getting a website positioned in is that if it’s done properly, the website will get visitors looking for the information the website is about. This can be very profitable if the website is ranked for a keyword that has what is called commercial intent. What that means is that it provides information about a product or service that people are actively searching for.

So, positioning a website for a good keyword allows you to place ads between prospective buyers and the products they are looking for. In a way, it’s a bit like a billboard. People are passing through, and an advertizing opportunity arises. It’s the future and it’s here to stay.

Buying gold and all the places where it can be done online

The fact that buying gold is getting more and more popular nowadays is a testament to both the unstable economy as well as the long standing value of gold as an investment. However, the problem that most people face when loosing to get some precious metals for themselves is that there is a very wide range of places where gold bullion can be bought both online and off.

Gold bars and coins

The offerings are often different from place to place which can make the whole process confusing to newcomers. What’s more is the fact that the lingo surrounding the entire gold investing industry is quite heavy and can quickly overwhelm people.

That means that finding the best places to buy gold bullion online requires a bit of research and quite a lot of accumulated knowledge. That is the only way to ensure getting the best deal and making the most out of the initial investment. There is no point buying precious metals if they don’t retain their value and get the buyer more value in the long run.