You learned in basic economics that the business environment goes in cycles. In the past decade the value of metal based commodities have soared. Gold, the most popular precious metal has exceeded $1200 in the most recent run up.
Precious metals have gained tremendous value over the last few decades - but it has not been in a straight line.
However, despite these large price gains, you wouldn't have gotten rich buying gold when you consider the increases in the cost living and low overall inflation rate over the same period.
Over the centuries gold and silver have served as a basis of exchange because they have intrinsic value.
Investments in precious metals has always have been used as a backstop during times of economic duress.Gold and silver prices rose by more than 500 percent and stocks faced severe losses during the mid seventies.Gold has appeared to hit a bubble during this latest economic downturn.But with the economic collapse the recently surging prices seem to be driven fear, not inflation, which is not a good basis for investment.
Investing in precious metals has not produced the expected returns over the long term.Over the decades, gold and silver investments hardly match the cost of living increases.On the other hand, investing in precious metals is better than keeping cash under a mattress. But as an investment the returns aren?t nearly as good as bonds, stocks, and real estate. Buying mutual funds or stocks can provide a better return if you truly want to invest in precious metals. - 31391
Precious metals have gained tremendous value over the last few decades - but it has not been in a straight line.
However, despite these large price gains, you wouldn't have gotten rich buying gold when you consider the increases in the cost living and low overall inflation rate over the same period.
Over the centuries gold and silver have served as a basis of exchange because they have intrinsic value.
Investments in precious metals has always have been used as a backstop during times of economic duress.Gold and silver prices rose by more than 500 percent and stocks faced severe losses during the mid seventies.Gold has appeared to hit a bubble during this latest economic downturn.But with the economic collapse the recently surging prices seem to be driven fear, not inflation, which is not a good basis for investment.
Investing in precious metals has not produced the expected returns over the long term.Over the decades, gold and silver investments hardly match the cost of living increases.On the other hand, investing in precious metals is better than keeping cash under a mattress. But as an investment the returns aren?t nearly as good as bonds, stocks, and real estate. Buying mutual funds or stocks can provide a better return if you truly want to invest in precious metals. - 31391
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