Many people make precious metal investments out of interest.
Precious metals are rare metallic elements that have significant worth in the world economic system.
Surprisingly, the worth of some precious metals, such as gold, increases as the state of the economy falters or the dollar value falls, according to Precious Metal Investment. However, investors should be aware of precious metal investment get-rich-quick schemes -- and keep in mind the prices fluctuate, regardless of what the economy is doing.
Gold is one of the most common precious metal investments. Gold prices rose to well over $1,000 per ounce by early 2009 as the stock market continued to decline. Some investors predicted that the price of gold could increase to as much as $2,000 per ounce during that time.
Although gold tends to be more expensive than silver, silver investments also increase as the economy flags. One ounce of gold is equal to 72 ounces of silver in price.
In 1997, the U.S. Mint produced a platinum bullion coin, and investment in platinum has subsequently grown , notes the A to Z of Materials. Investments in platinum date back only to the middle of the last century. Although gold, silver and platinum account for most common precious metal investments, investors also pursue lesser-known precious metals.
The most expensive precious metal, rhodium, is similar to platinum and gives white gold its shine. At times, its price has risen to more than $6,000 per ounce.
Palladium is a silver-white flexible metal that was discovered in 1803. Palladium investments increased because it is used in a car's catalytic converter. Then, the palladium investment rate plummeted because of a surplus due to Russian government sell-offs.
Investors have several options when considering how to invest in precious metals:
Precious metal investors should be careful of companies that offer financing agreements and claim they will allow investors to make a significant amount of money with minimal risk.
These companies advertise on the radio, on the Internet, on television and even through telemarketing. Such companies minimize investment risk, charge interest fees that are fraudulent and take advantage of investors.
The Georgia Secretary of State publishes a pre-investment checklist to assist potential precious metal investors who are concerned about possible fraud.