Gold has been the ultimate symbol of wealth for people for centuries. Ancient cultures created gold jewelry and sculpture. In earlier times, people made money from gold, what confirmed it’s true value. Though thousands of years have passed, attraction of gold remains very strong, and will remain so for a long time.

Investments in gold and other precious metals evoke great interest . Typically, the value of precious metals only increases with time. Amid depreciation rates and economic shocks that reduce the value of other assets, investments in precious metals look stable and reliable. The cost of gold, silver and platinum is growing steadily.

Kinds of investment metals

Gold is a very popular metal and attracts the most attention. Also as investment metals are considered platinum, palladium and silver. They have risen in price over the past few years, and the demand for them has increased worldwide.

While many people associate with precious metal jewelry and coins, these metals are also used in industry. The emergence of China and India as major players in world trade contributed to increased demand for industrial purposes.

Gold is the most important element in the electronics industry as an integral part of many high technology processes. This is an excellent electrical conductor, corrosion resistant, chemically stable element and excellent heat shield.

Platinum is used in medical equipment, computers and car parts.

Palladium is softer than platinum, it is a key element in catalytic converters due to its ability to resist oxidation and high temperature. It has a high electrical conductivity and is sometimes used instead of gold in electronics. Palladium has many other applications, including processing of raw materials, processing photos, water purification, fuel cells, recycling and cleaning of oil and natural gas.

Why buy precious metals?

The world is in the intensive growth of the money supply, and it is difficult to predict how far these processes can go. Too many factors affecting. Economy of different countries all closely intertwined, and problems in one country causes a chain reaction. The world gradually learns living in a total globalization, but the processes of management and coordination are just beginning to improve.

The overall inflation is continuous, and therefore the transfer of some part of savings in precious metals looks reasonable. But an investor who invests into precious metals (as well as into any other kind of assets), should follow simple rules based on common sense and time-tested:

- Diversify your investment portfolio;

- Consult with professionals;

- Carefully weigh all alternatives;

- Don’t trust your emotions when buying or selling.

- Buy on the wave of pessimism and sell on the wave of optimism - is one of  good strategies, which you should adopt as a prudent investor.