Precious metals prices are based on the scarcity of a given metal, as well as the current demand for the metal. For example, Palladium is the scarcest of the precious metals, and is thus, its’ cost is exponentially higher than Silver, Gold, or Platinum. At the other end of the precious metal spectrum, Silver is far more abundant, and has a wider range of uses, other than as bullion bars, jewelry, or coinage. In the middle, there’s gold, whose scarcity is enough to classify it as a precious metal, but abundant enough to back the value of the world’s entire fiat, or printed currency. It is for this reason, that gold’s is the most closely monitored of all the precious metals prices.
Since gold’s precious metals prices are the “hub” upon which the global economic “wheel” turns, demand for the precious metal historically rises, when fiat currency values depreciate. When demand for gold increases, so does its’ spot price. This relationship between falling fiat currency values and rising gold prices is known as an inverse correlation. Presently, this correlation is under very strong scrutiny, as there is growing doubt in our nation’s dollar (which is the fiat currency of the World Reserve) to be able to withstand the negative effects of the long-term inflationary cycle we are currently entering. As a result, droves of investors are preserving their wealth with long-term investments in rare coin, and diversifying with short-term, potential profit purchases of bullion bars and coins. Investors are encouraged to complete their research, and then to contact one of our friendly gold specialists, who offer large-volume discounts on bullion and rare coin.