Precious Metal Investing
Precious metal investing is one way an investor can try and make a profit even when the stock market is down or other forms of investment tools are not performing well. This particular type of doing business is not for the faint of heart and takes a great deal of market intelligence in order to make a living. Precious metals, among them uranium, platinum, gold, silver and titanium have a specificity to their actual supply, and while they all have been mined for decades or centuries, there is a limit as to how much can be brought out of the earth each year. When the demand for these resources outpaces the supply, the price for them goes up. With the addition of India and China as major players on the world's list of consumptive nations, the demand for these products shows a strong tendency to keep rising. Therefore, the shrewd player in precious metal investing has an excellent opportunity to cash in on these metals' continued price rise.
Consider gold for example, the great centuries old symbol of earthly wealth. For a beginner in precious metal investing, the safest form of gold investment is probably in the nationally minted gold bullion coins that countries such as the United States, Australia, Canada and South Africa mint each year. The standard is the one ounce gold bullion coins that are guaranteed by each government to contain one ounce of pure gold. In most cases, these coins are priced at about one hundred dollars above the going rate for market gold, although there are some precious metal investing dealers or individuals willing to sell them for less. Investing in gold is all about believing whether or not the demand for this metal will continue to rise in the years to come.
Because of new wealth being discovered in countries around the world, places to spend that money are being searched for on a regular basis, and silver jewelry is now in demand more than ever. This jewelry is affordable and can fit in the budgets easily of new consumers flush with cash. Additionally, silver is also the best conductor of electricity and so at low prices can also be a substitute for lead, one of the banes of the green movement across the world, particularly in Europe. Precious metal investing in silver is beginning to look promising after a long hiatus from the commodities investor's portfolio. Investing in anything takes some courage to try and figure out what the future holds and fear, panic, uncertainty and alarm can often fill our hearts. But the Christian holds on to Him that never changes: "God is our refuge and strength, a very present help in trouble. Therefore we will not fear though the earth be removed and though the mountains be carried into the midst of the sea." (Psalm 46: 1, 2)
Platinum often supersedes gold in value and is another of the resource commodities traded daily in the market. It is of high interest to those involved in precious metal investing and appears to rise and fall with gold in value. While it was once worth as much as eight times the price of gold, the metal has now bubbled just a little higher on the daily value list than gold. The metal has a very large and diverse list of uses, making it more in demand than gold. Just as gold can be purchased in the form of nationally minted coins, so can platinum be purchased in this form. And while a small amount of coins could be kept in one's house for dire emergencies such as bank failures, long term blackouts and identity theft, it is suggested, just like other precious metal investing, to limit large precious metal investments to mining interests.
There are two types of precious metals that will have large impacts on present and future values and profit making potential. Titanium and uranium have tremendous precious metals investing possibilities because of the industrial demand that will continue to climb. Titanium has a very large importance in the aircraft manufacturing industry and airplane orders from China seem to be driving the price of titanium higher. Golfers can now dream of thos booming drives now made possible with oversized drivers made with titanium. Hip replacements are often made with titanium, a metal no rejected by the human body. But as in everything else, the world economic conditions can quickly drive titanium prices lower or higher and one should have a real handle on this particular metal's place in the market.
If America is going to disembowel itself from the seemingly impossible hold of oil, it will not come from wind and solar, at least not in the next forty or fifty years. Wind and solar are not only expensive, but they cannot produce the quantities of energy the country needs. Nuclear power will be the short term answer to America's weaning process away from fossil fuels, and thus investors are getting interested more and more in uranium, an absolute essential in the coming nuclear plant construction frenzy that is bound to occur. This metal trades by the pound and investment and has gone up in price for constantly for a number of years. Profiting in this kind of precious metal investing takes a great deal of education and experience. Those investing in this type of metal are likely to have interests in the large mining companies that specialize in uranium.
Precious Metals InvestmentsPrecious metals investments, unless one just dabbles around the fringe with fairly certain odds, are not for the faint of heart. Trading in rare metal is a highly volatile marketplace and one that can change from moment to moment during the day when events ten thousand miles away can affect a person's portfolio. Dabbling around the fringe means one is buying gold bullion or platinum coins that have had a strong track record in recent months or years. But when an uninitiated person begins to get into derivatives, futures and options with precious metals, the experience can be like having a picnic with buckets of KFC along the banks of the Okeefenokee. Eventually a gator is going to decide he like Col. Sanders too. Serious precious metals investing certainly is neither for the novice nor the one with uncontrolled blood pressure.
Let's first help the dabbler in precious metals investments, the guy eating his chicken way up there by the highway. Investing money in gold, silver or platinum has been made quite easy by the US Mint that has been fashioning the American Eagle coins in these three metals for many years. If a person is concerned about inflation, deflation, the fall of the dollar or other circumstance that may affect the value of one's paper investments, precious metal investments can be a strong hedge against those potentially dangerous situations. Precious metal has always been valued when all other currencies or bartering goods were floundering or worthless. This could particularly be said of gold, the value of which dates back several thousand years.
In recent decades the rise of new consumer nations such as India and China has put severe pressure on the valuable metals market. This pressure has driven up quite dramatically the market prices of all three of these metals, making them tremendous profit making potential tools for the investor. A person could get into numismatics, which is the business of old coins, rare coins, coins with misstamps and other issues that drive up the price, but that expertise often takes years to obtain, and still has plenty of pitfalls. The ability to buy bullion gold, or silver or platinum coins or bars as a hedge against the rise and fall of paper assets has been made much easier by the ability to buy coins or bars in various weights. Precious metals investments allow the investor to have some currency stability in his own residence. With all of banking being completely dependent upon electronic transactions and with identity theft a reality for so many, the need for immediate financial capital can be answered with precious metals investments resulting in a few coins at home hidden in ingenious place.
In addition to the big three in rare metals are three other metals that have strong industrial applications and also are targets for investing strategies. Titanium has been the recent arena of the aerospace industry, making parts stronger and lighter. The golfing industry has also enjoyed the use of titanium in high tech drivers, spawning another use for this expensive metal. Catching the right waves for precious metals investments in this element can often depend on world events and competing economies. In other words, know what you are doing before entering the game. Where can a person go when life collapses all around? "The Lord is my rock and my fortress, and my deliverer; my God, my strength, in whom I will trust; my buckler, and the horn of my salvation, and my high tower." (Psalm 18:2)
Palladium has captured the favor of many investors in recent decades because it is also quite rare but highly useful in many applications. It is closely related to platinum and has many highly commercial purposes, including use in high tech televisions, catalytic converters for cars and luxury jewelry. Because of its ability to absorb up to 900 times its own volume in hydrogen, it has highly useful application in storing hydrogen isotopes. This can gives it a number of applications in the medical and research fields. It is extremely rare, and at present is found in only four major locations around the world, making it a very high interest precious metals investments target.
Uranium is the other highly valuable metal that so many good and bad people in the world want to acquire. With more and more attention being placed on America's energy vulnerability, the pressure to get the country off the addiction to oil will translate into a booming business for nuclear power. Uranium will become a highly important component in the effort to tell the emirs bye-bye. Wind and solar power cannot come close to providing the needed power for a growing country and the individual who makes precious metals investments a strong component of his portfolio may be able to see strong profit taking in the next decade.
Stock investment in world class mines that bring these rare metals out of the earth can be a good place to start when considering precious metal investments on paper. There are other mines that can also help an investor make money that have less expensive stocks, including small mines called junior mines. These are small operations that produce a small but steady amount of ore each year. Just like other stocks, a person should not put all his money in one financial sector, but should diversify along a spectrum of various industries. Putting all one's money into precious metal investments is not a wise move, and the best advice is always to seek a trained and experienced investment consultant before developing a portfolio. This is especially true when getting into futures, options and derivatives in the world of precious metals investments. These are highly volatile and very risky sectors of the investment market.