Precious Metals: Why they are Always the Go-To Option in Times of Crisis

Choosing an appropriate investment is always a tricky choice, but never more so in times of financial crisis. We can all agree that it looks likely that difficult economic times are the forecast for the next couple of years. When things look grey, one of the long-established go-to options has been the purchase of precious metals. We are going to look at these investments and why they are so appealing in a time of crisis.

Why are they, Precious?

Precious metals are considered so as they are rarer than other metals. This was perhaps the case more in the distant past, as it's not so hard to get our hands on gold or silver these days, but the prestige remains. Consider the scenario where you are offered a gift of a real gold piece of jewelry, or a replica, even if they both look the same, we are going to choose the real one. This shows that these metals are still important to us.

Long Established Markets.

The markets and valuation procedures for precious metals are long-established. If we look at the history of these, we can see that the practice goes back to the ancient Egyptians in 3,600 B.C. Not only were these rare, but they could be worked into other objects and were durable. This meant that goods crafted in these metals have always had appeal.

Investors can also be Collectors.

The fact that gold, silver, and platinum are easily workable allows them to be made into collectible items. Many choose to get involved in the silver market with Gainesville Coins. Coin collecting is not only an interesting hobby, if played well can be a profitable investment. Ornaments, watches, etc. are all other items that take the value of precious metals beyond the simple value of the metals.

Values Tend to Generally Hold.

When looking at how values have increased over time, we can see that precious metals do not tend to lose money. Therefore, we consider them a safe bet. You will often read articles slamming gold as not being the great investment many insist that it is. Skepticism over the value of these investments usually comes with comparisons to certain parts of the stock market. Such comparisons are problematic since they generally assume the investor to have chosen the stocks and bonds that we can see to have performed well retrospectively. While precious metals may not always be the best investment, they are certainly a safe one, which is why they are a good idea in uncertain times.

Which Precious Metal is Best?

Gold is the clear frontrunner in terms of popularity, but does that make it the best investment? Silver is less costly, so smaller investments can be made but more storage would be needed for larger investments. Platinum and Palladium are other possibilities, they are more versatile than many of the others as they also have industrial uses such as car manufacturing. In reality, they all offer a safe bet and the differences mostly depend on current market forces.

This article does not necessarily reflect the opinions of the editors or management of EconoTimes