Precious Metals Market
The precious metals market consists of five main precious metals that investors ally themselves with: gold, silver, platinum, rhodium, and palladium. Most of us are familiar with the first two, and maybe platinum as well, but could rhodium and palladium actually outperform the other metals during the current cycle?
While some technical trading indicators say yes, the fact that most investors know nothing about rhodium and palladium does not bode well for the future prices of these two metals. Additionally, the inverse relationship that gold has historically maintained with the US dollar is not always present with rhodium and palladium. These two metals gain most of their value from industrial use, and the sad fact is that most industries in the US and abroad are fighting to stay afloat.
Platinum has exceeded analysts’ expectations recently, though a quick look at a historical platinum chart shows that this white metal has a tendency to swing high and low radically, with little to no forewarning or obvious cause. If you are investing for safety, surely this isn’t what you want. If you are speculating, you may consider vesting funds in platinum, although the downside potential is rather large at the current time.
That brings us to gold and silver. Silver recently pulled back from over $17 per ounce to less than $15.50, so some economists believe that the “poor man’s gold” is due for a rise. Many market experts polled said that a 70/30 split between gold and silver historically works best, although you need to consider your own investment goals before adopting this philosophy. Gold’s exclusive inverse ties to the US dollar and its’ high investment demand make it the most attractive precious metal to invest in right now, even though jewelry demand is down and gold’s use in appliances has faltered. The precious metals market is constantly evolving, so visit Precious-Metal.org often to keep up with all of the aforementioned metals.
Franklin Gold
