Why should you invest in precious metals? The reasons are too numerous to be all inclusive
. Perhaps the best reason is that due of current economic and world events its the only place to be. Instability has become the common theme and we are told to believe that the situation is getting better, but it"s hard to believe from current events. These days to invest in the stock market you need nerves of steel and a supply of antacid medicine. The past ten year return for stocks has been zero percent, that is if you were not lucky enough to invest in the Nasdaq in 2000, which has not regained 50% of its value in March 2000. The truth is that returns for stock during the past decade was negative when you consider in the rate of inflation. This was during a ten-year period when corporate profits and real estate was growing substantially. Now, that the world economy is faltering and both the real estate market and corporate profits are are deceleration, stocks are not asset class to invest in. Gold on the other hand has gone up four times in price since 2000 as investor realize that the precious metal because they feel it is represents value. On a historical perspective when adjusted for inflation gold is still undervalued. Individuals and Institutions are now demanding more gold as both as an investment and hedge in uncertain times.
The trend is evident, as nations such as China and India have made large purchases recently to protect their wealth. Gold is a depleting asset and limited in supply, mining production and new finds have been decreasing putting/exerting greater pressure on the price of gold.