The precious metals market remains highly attractive for investors who want to diversify their portfolios to guard against the ebb and flow of stock holdings. Additionally, recent trends have created in a situation in which investing in gold and silver is highly profitable and likely to continue growing into the year. Analysts have predicted gold and silver are both strong long-term positions, and recent financial movement has created attractive price points for those interested in moving into the precious metals market.
Many financial markets remain highly volatile, and are expected to continue this trend throughout 2013. However, gold is seen as a bulwark against this fluctuation and typically retains its value even when financial instruments are crumbling. Given the consistency that gold provides to an investor’s portfolio, it remains a good idea to incorporate tangible coins or bullion into a portfolio to guard against market aberrations.
Additionally, the currency market has seen a recent devaluation trend in the U.S. dollar and this shift is likely to make gold a more attractive investment to foreign purchasers, since gold’s price point is calculated in U.S. dollars. Inevitably, this will drive the price of gold up, which creates a unique opportunity to enter the market now in order to cash in on the projected gains of the metal. Furthermore, CNN cites a study in which gold is anticipated to benefit from low interest rates throughout the first half of 2013. This creates another opportunity for savvy investors to stake out a position in the gold market before the price point continues to rise.
Silver provides another opportunity for smart investors to enter into the commodities market at an excellent time. The metal is priced attractively, and according to analysts, it is poised to enjoy tremendous long-term investment success over the coming decade. Investors should understand they are likely to see short-term fluctuations in the market, but those holding their positions will be rewarded with tremendous long-term growth. The Wall Street Journal recently reported that investors have been seeking out more silver in response to the projected expansion of the solar-power industry.
Due to the inevitable decline in fossil fuel output, and the turbulence in the Middle East, many analysts are hedging their long-term bets on solar energy for a large portion of the power usage of the future. In turn, since this industry utilizes a large amount of silver in the production of grids, prices of the metal is likely to rise significantly over the coming five to ten years. Additionally, analysts report that those investing in gold and silver have seen their largest gains in 2013 come from their silver holdings.
With long term-prospects high due to projected interest rate changes and emerging markets, investing in gold and silver is likely to be a great choice for the individual investor who wants to see large gains over the next five to ten years. However, purchases of coins and bullion is currently on the rise, so investors are advised to enter the market quickly before price points are driven up to even greater heights.