The Precious Metals Outlook for the Coming Year 5.00/5 (100.00%) 1 vote

The precious metals outlook for 2014 could be very good. In recent years, gold has gotten most of the attention, simply because the metal has a relationship with the dollar that made it an attractive investment. The price of gold tends to have an inverse relationship with the value of the dollar, and because of that, the metal was exceptionally popular in the worst days of the Great Recession. Things are certainly looking up right now, but gold and the other precious metals on the market could stand to do well in the coming year.

Where the precious metals outlook is concerned, many people want to know about gold more than anything else. This metal has long been the place to put money when the economy is in a tough spot and, over 2013, the improving economy brought some reduction in the price of gold.

In 2014, as far as the precious metals outlook for gold goes, some analysts say it will go up in price and some say it will continue the devaluation trend that the markets saw this year. Either way, there are people who will be buying this metal up. Those who project the price will rise will want to purchase it to get a profit and those who want to hold onto gold for the long term will certainly see advantages in buying it while it’s less expensive.

The Silver Outlook
The precious metals outlook, for many investors, is about gold and silver. These are the two most long-traded metals on the market, but they are very different in terms of how they behave and how they react to changes in the market.

Silver is notable for being a volatile metal. This is why the precious metals outlook, in the case of this particular metal, has to be understood with the knowledge that the prices can change a great deal in a short time. Silver makes a great long-term investment, but some investors prefer to buy this metal up for shorter term investing purposes and, because of its volatility, those investors sometimes make a handy profit on the purchase.

The precious metals outlook for those who want to invest in the most expensive of all metals has to focus on platinum. This silver-white metal is used in industry extensively and it is far scarcer than gold, making it exceptionally expensive.

Platinum is available in all the same forms that gold and silver are available in, but this metal is not so much associated with currency as are the former two. This metal is used in the automotive industry and in high-tech applications. It has catalyst properties that make it indispensable in some of those applications and that, in part, is why the price of this metal tends to be so high.

Palladium is probably the most overlooked where the precious metals outlook is concerned, and this is unfortunate. This is a member of the platinum group of metals and, as such, it shares many of platinum’s useful properties. It is also very scarce, but it trades at a price that is usually between that of silver and gold, making it something of an intermediate metal in terms of price. It, like platinum, is an industrial metal and is used extensively in the automotive industry.

The prices of metal over the coming year are hard to forecast. Forecasts are always based on the continuation of present trends and, in many cases, that doesn’t actually happen and things change drastically. Precious metals, in any regard, have long been used by investors as places to put their money in volatile, bull and bear markets, so they always have a place in a portfolio.