More people are beginning to realize that precious metals investing is necessary to position themselves well in times of war and peace. This is because precious metals such as gold and silver are viewed widely as both money and commodity.
Precious metals are not just tangible goods but something of great intrinsic value. Precious metals investing are also tied closely with geo-political and global economic situations. For example, when there is weakness in the economy or fear of inflation, the price of precious metals, especially gold trading price, will tend to inflate. When there is potential geo-political tensions and conflicts such as the current skirmishes between the North and South Korea, it will impact gold trading price – driving it further up.
Precious Metals Investing In Ancient Times
Precious Metals Investing In Modern Times
Precious metals investing took a new form during and after the
Motivator For Precious Metals Investing
A strong motivator for precious metals investing is Fear. Actual conflicts and war cause jitters, but the fear of potential war can also drive prices of precious metals. This is because no matter how small a conflict is, it could still potential cause political and economic instability. Wars can be expensive and a drain to a country’s resources and can drive up inflation. When that happens, people flock to precious metals investing as a hedge against inflation.
Precious metals investing will also get a boost from fear of devaluation of fiat currencies. For example, when the U.S Federal Reserve announced the Quantitative Easing II in a bid to improve the U.S economy by pumping $600 billion dollars into the market, it drives up gold trading price because gold as traditionally be viewed as a store of wealth.
Even today, there are some catalysts that can drive more people towards precious metals investing leading to more gains for gold and silver trading prices. Hot spots like Afghanistan, Iran and North Korea are areas of potential conflict. The current economic weakness in the U.S and Europe as well as global political uncertainties seems to provide a great boost for gold trading price. Therefore, precious metals investing is essential in times of both war and peace.