Is There Opportunity in Precious Metals?

I know a lot of people who have gone back to practices our species has done in the past.  A lot of my colleagues are trying old fads like the caveman diet, or going back to just eating plants or something crazy. Others are trying to buy gold and keep it on the basis that one day the world economy will eventually fall and we will have to go back to trading gold for products and services. I always thought those people were crazy too but what do I know? Maybe they’re right.

 

Currently in our economy that is slowly making its way back from the crushing decline in 2008, consumers along with buyers and sellers are looking for an opportunity to make money and indirectly boost the economy. That opportunity can come in many different facets. One facet may be precious metals. Historically, gold has been the measure of the amount of capital a country had. However, as we have zipped into the future, we now live in an environment where we buy things heavily on the use of credit. As the use of credit has increased and the paying back of that credit has decreased, interest rates begin to sky rocket. This has made the opportunity in precious metals a tough one to consider. Most of us know that the market can change on a dime, but is there opportunity in precious metals right now?

 

The answer in my honest opinion is no, not now. The dollar has been very weak as of late which has made gold and other precious metals costs to slightly rise. Just as with stock prices, you want to try and get in at the ground level, and a precious metal like gold is not currently at the ground floor for investing. However, if the interest rates start to come back down, the price of gold would likely fall as well, making it easier to buy more of it. The opportunity to get into precious metals really falls on how good or bad other countries’ economies affect the US dollar. Even precious metals like silver, and palladium have risen. This is a firm indicator that now is not the opportunity we are looking for when it comes to these precious metals currently.

 

Is it worth it to go all in on something like gold? Maybe in the future. It is something to think about. It is possible that one day all the printed money and coins won’t be useful anymore and a barter system could come into the fold again. The select few who decided that gold is what they were going to buy for just that moment will be ready. Realistically though, based on what I have written previously, there is just little opportunity in a precious metal such as gold. The dollar is very weak right now and gold has been on the rise for the last three months. So, could you stock up on gold and prepare for a world after paper money? Sure, but don’t do it right now.