Precious metals, such as gold, silver, and platinum, have long been considered valuable items. Indeed, gold jewelry has been an indicator of wealth since Ancient times and in many regions of the world, it still is. Today, they are also a worthwhile addition to an investment portfolio. The concept of investing in precious metals, along with stocks, bonds, mutual funds, or real estate, has recently enjoyed a resurge in popularity. In the wake of the 2008 financial crisis, some people began turning to gold and silver as investments that would retain their value over the long-term, regardless of the state of the economy. Buying precious metals as investments is a good idea, provided you consider the following information carefully.

Types of Precious Metals

Gold is the most popular of precious metals. Silver is second in popularity. While these two precious metals attract the vast majority of media attention, they aren’t the only metals to consider investing in. Indeed, you might want to consider investing in two other investment metals – platinum and palladium – which have a wide variety of common uses. Not only have the prices of these precious metals risen in the past decades, these metals are frequently taken advantage of for new industrial and technological purposes. Platinum can be found in automobile parts, computers, and medical equipment. Palladium is slightly softer than platinum and is used as a key material in catalytic converters. In some cases, it is also used in the place of gold in electronics because of its ability to conduct an electric charge. Palladium can also be used in fuel cells, in the process of refining and purifying natural gas and oil and additionally in photo processing.

Outlook

The demand for metals has consistently increased in the past decades and predictions indicate that demand will continue to increase. However, this factor alone does not mean that the price is consistently going up. When it comes to precious metals, availability or supply is also a factor that necessitates consideration. Do your research before buying in order to understand if current prices are acceptable at the moment. Buying precious metals is about timing; prices are volatile in the short-term but stable in the long-term. If you do buy, remember that precious metals are a long-term investment.

Prices and Other Considerations

Gold is currently at an all-time high at slightly over $1,250 USD per ounce. However, the price per ounce is still well behind the price in 1980 when adjustments for inflation are taken into consideration.

The price has risen 300% in the past half a decade, though, and it is expected to keep increasing. Platinum sold for an all-time high price of $2,252 USD per ounce in 2008 but has since decreased dramatically in price to the fifteen hundred dollar range. Palladium currently sells for just over five hundred dollars, although it was up to $1,100 USD in 2001. The price of silver is once again nearing $20 USD per ounce, the all-time high. Keep in mind that when you invest in precious metals, whether in the form of coins or bullions, you will also require a safe place to store them.