Okay, let’s say that you open a standard Internet browser and look for the current precious metals quotes. You would see that gold is trading for a certain dollar amount and that silver, platinum, and palladium have different values too. These precious metals quotes are for one pure ounce of the metal in the different commodities markets, but you may not comprehend what this means to you as a modern investor.
For example, how would precious metals quotes impact the value of your portfolio or holdings? If you have been following the world’s headlines, you might already understand that when the precious metals quotes spike upwards, it is usually a sign that the markets of the world are in a bit of trouble.
Just take the different precious metals quotes for gold over the course of the past year. Whether you are looking at the market value or the different quotes for assets such as specific coins or bullion, you can see that the price is just going higher and higher. This is because gold has been historically used as what investors call a “safe haven”. Just visualize that for one moment…a safe haven is like a calm harbor in which investments can be kept during times of great turmoil outside of that harbor. So, a storm is raging at sea, but the investments in the safe haven are protected, thriving, and at no great risk.
Okay, you might think, that sounds good, but what about growth? Well, if you look at the current quotes, you would see that the rush for safe haven precious metals investments does not allow the prices to remain “static”. On the contrary, as soon as people begin rushing to any investment option it causes the pricing to climb. Thus, the immense amount of growth experienced by metals such as gold and silver are due entirely to the need for a safe haven.
Without knowing it, the world’s many investors created a situation in which they protected their portfolios from loss and risk, but they also caused the value of their savvy investments to climb sharply.
Naturally, this leads to discussions of things like “bubbles” that will soon burst, but most experts point out that the causes for the increasing investment in precious metals are not going to disappear. Until the world’s financial systems and markets are more stable and predictable, the quotes for all of the precious metals are just going to continue to climb.