Precious Metal Prices

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I was reading this person’s article and noticed how heavily reliant it was on Chinese growth (Chinese GDP grew a solid near 8%). The problem with today’s finance world is that our world is not only far more advanced today than it was even 10, 20 years ago, it is also interconnected and vastly more complex.

In other words, no one nation can drive the world’s economic growth anymore. However, its converse is NOT true. If any of the major 1st world powers or China goes down, the rest of the world will typically follow unless everyone can get together and loan money to the nation in financial crisis. The problem is some debts racked up by countries is just too big to bail out.

This is what primarily drives long-term investors of precious metals into them in the first place. They just check the prices for it daily or weekly so they can buy on the dips (or lows).

If you’re planning to actually buy any gold, silver, platinum, or palladium, know that depending on which company you choose to work with, you can expect to pay anywhere from 1% to 10% over the spot (current) price of the precious metal in question.

Obviously, the more ripoff, scammy the gold dealer, the more they will try to milk you. While not illegal, it is highly recommended you avoid such conmen at all costs. Also, make sure there is an actual physical delivery of your metals of some kind, either to your safe storage area or to you personally.

While no one can predict what precious metal prices will be years from now, many agree that it will continue to climb over the long term as the fundamentals maintain its current course. As you know, these fundamentals include skyrocketing U.S. debt and spending, increased real inflation (not nominal), and continued devaluation of the purchasing power of the U.S. dollar, as well as other nations who are engaging in money printing as well.

If you are going to redirect your retirement funds into metals, know that only gold, silver, platinum, and palladium is acceptable. It also has to be stored specifically in an Individual Retirement Account as the investment vehicle. Otherwise, you will need to buy the physical metals itself and have it shipped to you personally, which usually incurs much higher fees than doing it through an IRA custodian.

Here’s a video of an accomplished mining speculator giving 10 reasons why precious metal prices will go up. Note that this was done before the April 2013 correction but his advice holds true over the long term. This type of investing, like most securities, is often fraught with volatility and high-risk, so make sure you know what you are getting yourself into:

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