When you think about some of the most valuable things in human history, what comes to mind? Now, “things” is pretty broad, of course, so let’s narrow that down a bit. What are some of the commodities that have really stolen our hearts not just through the decades, but through the centuries?
Maybe diamonds come to mind, or other gemstones. It could be certain crops, too, like tobacco or coffee. Spices are another solid pick. However, there’s something that simply stands above the rest – that’s right, gold.
Few material goods have been so influential upon humanity as gold has been. Think about it – the entire Age of Exploration that we’re all so familiar with (you can read about it on this site) now wouldn’t have happened if the kings and queens of Europe hadn’t been so keen on collecting as much gold as they could.
Right now, though, we’re not exactly living in Medieval times. Why is gold still such a big deal? Is it really still worth investing in, all these years later? Those are the questions this article seeks to answer, so keep reading if you want to know!
Gold as an Asset
These days, we don’t really see much of those big battles for getting the most gold between nations as we used to. However, this doesn’t mean it’s not a highly valuable and sought-after asset. In fact, it’s both of those things – time hasn’t diminished the grip that gold has on us.
The “why” behind that might seem kind of complicated at first, but once you start looking into it further, it honestly makes a lot of sense. First thing’s first – you’ll need to think about gold as a commodity.
For our purposes, commodities are types of raw goods or materials that can be refined somehow. Typically, they’re traded in the raw form, but this is not always the case. Gold is a bit of an exception to that rule, for example, since when consumers purchase it, it’ll probably be in a refined state.
Most commonly, that looks like bullion or coins. Generally speaking, buying bullion is the simplest way to invest in precious metals because of the portability of the little bars of whatever metal chosen in this form. Sure, they still require storage set aside, but it’s not really the same as having a bunch of raw ore sitting around.
Coins are slightly less popular these days, seeing as there are not many still being made that qualify for things like a precious metals IRA. Doesn’t mean they’re a bad investment, though – just one that makes some people pause now given that the market isn’t quite as strong for coin collections. Still, though, for the ones that do qualify to be in a precious metals IRA, they can be worth a lot.
What’s so Special about Precious Metals?
So – we’ve established that gold, silver, platinum, and palladium are a pretty big deal when it comes to investing. Why is that, anyway? Yeah, they’re called “precious” metals, but how did they even earn that name?
Most of it comes down to chemistry, so sorry in advance if that’s not really your thing. You may want to check out a page like this one, https://www.epmf.be/precious-metal-all-around-you/, if you’re not sure what they are. They’re also known as “noble” metals, if you’ve ever heard that before, but it’s not as common.
As you can probably imagine, there are a ton of qualities that make them special enough to be considered “precious.” For one thing, all of them have some sort of shiny-ness or luster that makes them quite appealing. That’s why jewelry is made out of them so often – there’s a level of beauty that comes from using them as materials that can’t really be achieved otherwise.
Beyond that, though, they’ve also got a ton of practical uses. For example, gold and silver especially are super useful in the electronics business. A lot of the stuff that we use every day has gold or silver in them somehow – usually in the motherboard, but that’s not the only spot.
Additionally, platinum and palladium have a place in the manufacturing of automobiles. Both can be added into engines or filters in certain concentrations to help reduce the greenhouse gas emissions from vehicles. They’re more expensive than the others for investing, but it’s still something interesting to keep in mind.
Are they Worth it in Investment Terms?
With all of the above on the table now, you’re probably still wondering: are precious metals worth investing in still? If articles like this one tell us anything, it’s that yeah – it seems like they’re still worth it. Seeing as they haven’t really lost their value much in the past several hundred years (if not thousands, really), it’s pretty unlikely that we’re going to see a huge crash in their value in our lifetimes.
That’s especially true given how important they are in so many different industries. Electronics and automobiles aside, even just in jewelry they’re integral. That’s not just here in the United States, either – they’re a big deal all across the world. In fact, there are certain times of the year that gold value spikes like clockwork because of the wedding seasons in India and China (as just one example).
It’s not a high-risk investment, either, which is part of what makes it so very appealing to a lot of investors. That being said, it’s not going to be a quick way to make a bunch of money. It’s definitely an asset that folks have to hold onto for awhile to see a “return” on, if we’re looking at it from a traditional investing standpoint.
However, most of the time when people decide to invest in gold, it’s to store their wealth in an asset that won’t get impacted by inflation rates. So, making a quick buck isn’t really on their mind in the first place. If this sort of thing sounds appealing to you, then chances are, you’ll find it to be worth your time and money.
