Any precious metal price is directly influenced by demand for that metal. For the purposes of this blog, the precious metals I’ll be referring to, are gold and silver, as they are the two most commonly traded precious metals. Gold is the primary investment metal of choice for most household housekeepers, with silver’s affordability and market versatility, making it the usual diversification metal of choice. It is important for investors to remember that diversifying between both metals is widely recommended, since silver prices aren’t as directly related to dollar values, the way gold prices are. The precious metal price fluctuates hourly, depending on demand for the respective metals.
Precious metal demand is, in turn, influenced by economic factors like war, inflation, government intervention of corporate activity, and dollar devaluation. Dollar devaluation and inflation go hand-in-hand, but that problem is currently compounded, by massive overprinting of our nation’s currency. Our Treasury Department has printed over forty percent more money over the past few years, and we are currently entering a long-term inflationary period, that could be the worst in over thirty years. As a result, more and more investors are preserving their remaining wealth through well-diversified precious metals investments in gold and silver. Long-term security seekers regularly invest in rare coins, like $20 Saint Gaudens, and $20 Lady Liberty’s, that are certified by either the PCGS (Professional Coin Grading Service), or the NGC (Numismatic Guaranty Corporation). The “mint state grades” that these companies assign to rare coins, designates their inherent, numismatic value, which generally appreciates over time.
Short-term investors usually buy bullion bars and/or coins, as they contain no numismatic value, and bullion values usually adhere closely to their respective precious metal price. Reputable names for bullion bars include Johnson Matthey, Credit Suisse, and PAMP Suisse, and popular bullion coins, like 22 Karat gold and silver American Eagles, and 24 Karat Canadian Maple Leafs, and Australian Kangaroos, which are also available in silver. Investors are encouraged to evaluate their specific financial needs, and then to contact one of our friendly specialists, who offer institutional discounts to household investors like you.