What is the Future of Precious Metals
- Written by Anna Koretskaya
Do you want to buy precious metal from a bullion dealer and hear that the supplies are slowly depleting? Now you wonder what the future holds and if it is a good investment. Then you need to look at the history of precious metals compared to government-issued currencies.
Physical Precious Metals vs Fiat Currency
Government-issued currencies have been fiat for decades. It only has value because that government or agency claims it has worth hence they have value by government agreement. In the past, currencies had money backing in gold, silver, or other forms.
Those days government would only print paper money as long as it was backed by precious metals as stated by the law. As a result, currencies remained stable with the overall supply of these metals and inflation was low. However, as governments started printing more money to pay for wars inflation was high and government didn’t have enough gold to back their currency.
Hence, the removal of the gold standard from currencies has led to dangerous situations regarding inflation and value. Therefore, you cannot place all your confidence in world currencies as they can collapse and become worthless. A good example is the Zimbabwe dollar, which is worth nothing today because of government printing too much money.
Hence, investing in precious metals is an excellent hedge against inflation and governments printing too much money.
The Demand for Precious Metals Keeps Growing
On top of being a form of currency, gold or silver play an essential part in the jewellery and medical industry. Both have a unique chemical property; it has a high industrial demand. As countries develop their trades using precious metals, it keeps growing..
So What Is The Future of Precious Metals
One thing is for sure the demand for precious metals will keep growing. As developed nations grow, the economy grows, and the industrial demand for precious metals increases. Hence, people will gain more purchasing power for jewellery and industrial use of these metals.
Moreover, as world economics become stagnant, more investors are looking to buy precious metal bullion to protect investments and hedge against inflation increasing the demand. This is where the mining sector, refineries and bullion dealers come into play.
A fact is that mining outputs are dwindling,. Hence, precious metal buyers play an important part in providing recycled sources to help keep up with the demand.
While it does not increase the entire supply, it helps convert these precious metals from a manufacturing form back into the bullion market. So, if you invest in bullion and the time is right to sell it, you can get fast cash selling it back to a bullion or gold buyer.
Invest in Precious Metal Now
While inflation is high and war is on the agenda precious metal investing has sky rocketed, you still have gold buyers recycling the metal to help increase the supply. So before it does become expensive and scarce, now is the time to invest in silver and gold. We recommend you visit a bullion dealer to help you with that investment.