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Investing in Precious Metal Market Could be a Great Choice Right Now

By Nancy Smith      Printer Friendly Version Bookmark and Share
Feb 13 2012 12:17PM

Investing in precious metal market could be a great choice right now

Let’s face it! With the current economic turmoil in both US and UK and the increasing battles of tax everywhere, more and more investors are looking forward to invest in precious metals as a hedge to protect their wealth. However, as per the reports issued by the Bureau of International Recycling, the metal markets will go through ups and downs in his year. The factors that are mainly responsible for this volatile condition of metal market are the stock and the forex market performance, which took a severe rain check in the last year. However, this doesn’t mean that investing in metal markets is completely a wrong choice. The aspects that had boosted the metal values in the end of 2011 can enhance its market value in 2012 as well.  Read on to know the guidelines, which can help you invest in precious metal market successfully.

Increase your knowledge on the subject

First and foremost, get familiar with the prime ways of investing in precious metals. Gain as much knowledge as possible on tangible coins and bars, certificates, precious metals mutual funds, stock in mining companies and most importantly on gold and metal’s futures. In short, before you invest in any of the precious metals, make sure that you weigh and consider whether the value of the metal is increasing or going down.

Current scenarios

Thanks to the increasing demands of gold investments, there is an increase in the wholesale prices as well. Recently, there is a rise of 2.5% in gold; as a result of $1,700/oz to $1,712.80, which is regarded as the biggest gain in a day in comparison to the gains of the last few months. This is the reason why a number of investors are interested in Gold investment. However, some investors still believes it’s a temporary phase which will soon pass.

When it comes to silver, it’s too regarded a little unpredictable. However, you could still bet on it, as it has shown some high trading opportunities as its price reaches $1.66, which is the highest in the last few years.

Current investors

Nowadays, a number of investors count on precious metal mostly because they have faith on the fiat currencies throughout the world. The gold and silver does not only refer to the physical metals, but it also includes stock futures of the mining companies and ETF’s. Investing in precious metal market comes with a lot of perks. For example, precious metal investment can spare your wealth from depreciation and none of the precious metals are regarded to be a liability for you.  

Predictions for 2012

Professional Numismatists Guild claims gold will stay in the higher price range which will vary from $1,475 per ounce to $2,155 per ounce, whereas the value of Silver will range from 57.50 per ounce to$24.35 per ounce. In case of Platinum it could be traded from $1555.75 to $1543.75 per ounce.  For Palladium the value will drop a little, as it’s presently trading for approximately $677.75

Final thought

Last but not the least, remember, as precious metal fund can be diversified and managed, these are considered the most stable one in the investment market. If you are confident with your ability to predict whether the value of metals will increase or decline, you can consider trying your hands at precious metal investments this year.

Nancy Smith



Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.