How to Make Money on Precious Metals

How to Make Money on Precious Metals

Everyone says that precious metals like gold, silver and platinum are a great investment, yet there are now other precious or industrial metals that are just as valuable and essential for many an industrial process and the manufacturing of specific tools and technology. Yes, the sector has yielded massive returns, but it’s a tricky investment and this article will provide some tips in this regard.

Gold has always been considered the best option

There is more gold stored above ground than the new supply and new mines and as this is bought and sold the overall daily price fluctuates. As such, it can be quite volatile depending on how much is bought and sold. It thus presents an opportunity to increase your value over the short to medium term and hold its value over the long term. Gold as an investment is solid and arguably always will be.

Silver

The price here is based primarily on the use of silver in industry and its perceived holder of value. It is somewhat more volatile than gold. A notable example of this volatility was the rise in the middle class in the east and the related increase in electrical appliances saw a huge increase in the demand for silver and as such, its price rose widely, making many a millionaire.

Platinum

Platinum is like gold and silver and is a commodity that is traded on a 24hour basis around the globe. The greatest demand comes from the automotive manufacturing sector. As such, the price is determined by the sale of and demand for new vehicles. It has proven a solid investment and as its uses increase in industry, it has moved away from being viewed as a jewelry metal with more industrial and medical applications.

The new precious metals/industrial metals

The automotive, chemical and petrochemical industries now use a range of metals, palladium, iridium and rhodium being the main examples whose demand and increase in use has made them pricey and as such precious. They may not be shiny or have any jewelry potential, but they are the new metals that fortunes will be mode on. It is these that the modern-day savvy investor needs to keep an eye on.

The investment in all of these can thus happen on the various stock exchanges and this so-called trading in commodities can be done at any time as long as you are registered, or you can buy via a broker or financial investment firm.

Lastly, one can buy the metals in bar or coin form and either have them stored or bring them home to a safe place. Or one of the current trends is to buy used and secondhand jewelry for its weight in value rather than for the jewelry itself. It’s why the secondhand market is booming and why the need for a precious metal melting furnace has increased as businesses look to make the most of secondhand jewelry.

The secret to making money from precious metals is to understand their use but also where their intrinsic value lies, and this is in the weight of the metal and its purity. Great jewelry design and artifacts of old are exceedingly rare and thus, if you are looking to invest, the idea would be to ensure that you know the daily costs, have an idea of what you intend to do with the precious metal, where it will be stored and if you will actually take possession of the metal.

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