Precious metals is the term for any of the rare, naturally occurring metals with high economic value. For the purpose of investments the most sought after precious metals are gold, silver, platinum, and palladium.
» Understanding Precious Metals Pricing
Precious metals investing has offered investors a consistent hedge against declining U.S. dollar value. Since 2001, the United States dollar has steadily declined more than 40% up until 2011. This decline has only further exacerbated itself and other problems for investors in the years following, especially in the year 2008. The U.S. dollar is losing its buying power.
However, precious metals are traded globally with a consistent level of interest by domestic and foreign investors. The main three metals, gold, silver, and platinum, gain the larger portion of attention during times of economic fallout due to their relatively isolated value from the U.S. dollar. For investors, looking to diversify into precious metals may be a solution to hedge against the falling fortunes of the U.S. dollar.