Investing In Precious Metals

Doing investments in precious metals has always been in great part a manifestation of an investor’s perception of the path the national and world events are turning towards. There are many temporary speculators that get into the markets and then jump right out all in hopes of being able to make a quick buck that will last them.

On the other hand there are also wise investors that make it a point to identify with the essential factors that rule over the economic interaction. Wise investors make it their business to become well immersed in the history of economics, the current accounts and the projection for the investment they are considering making no matter what type of investment they are thinking about such as real estate, stocks and bonds, precious metals or commodities futures.

We have been able to see throughout history the basis that in many occasions investment in tangible commodities is the greatest safeguard against the unknown future. If you think about some renowned investors such as Sir James Goldsmith and George Soros, who invested in gold shares in 1993, you should be aware that this was not done just by chance.

At the same time as a common economic upswing is taking place in the United States and Western Europe, the extent and time of this tendency is uncertain and there are some grave issues that draw attention to insecurity: bad real estate rates in the United States as well as Japan, high equity and bond markets, increasing debt, instability of currency (as well as the ongoing weakness of the dollar against the yen that has gone down more than ever), the downfall of the greatly vaunted European Exchange Rate Mechanism, booming economic growth in what could turn into the world’s leading national economy being China, and political confusion and social instability in countries like South Africa and Russia. Underneath all these we can find an understandable tense uneasiness about the future threat that inflation will soon fall upon us. At the end of 1994 valued surveys of inventory, production and key economic indicators all indicated why we should be concerned about the situation.

Some years ago there were some commentators of finance that proclaimed that precious metals should not play any noteworthy role in a reasonable modern investment portfolio. The good thing is that there are a great amount of prudent investors that did not pay attention to this point of view and as of today investment in gold, silver and platinum is considered to not only be as a protection against what cannot be seen but also as a concrete insurance against the future, no matter what that may be.

If uncertain loans and savings, banks and brokerage houses are the setback, none of the financial decision makers would rely on them and would they would certainly not be the places people would go to hold their money assets.

 As we all know the government deficits and debts continue to increase and paper money is no longer much more safe than private paper. Even as the municipalities failure to pay their bonds, the once thought of strength that the government paper used to have over private paper has decreased and is pretty much over with. In the same way, mutual funds, investments banks and institutional managers have more and more followed along with the Soros-Goldsmith example of investing in the real assets which are provided by precious metal such as gold, silver and platinum.