Six Trends that Will Drive Up the Price of Precious Metals in the Coming Year

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Written By Barry Lenson

The period of Covid-19 has been a year of doom and gloom – and with good reason. But now that the end is in sight, opportunities are increasing for precious metal investors.

So let’s throw off the gloom and feel optimistic. We are certain that the coming years will offer great opportunities because the following trends are at work. All of them lead to the conclusion that increasing demand for gold, silver and platinum will drive prices upward in the coming years. And as prices rise, your investments in precious metals will pay you a bigger return.

Trend One: The Electrification of Buildings, Cities, and Vehicles

In their homes, people are installing solar panels and storage batteries. Many new commercial buildings are using advanced electronics to minimize energy consumption and limit thermal losses. Cities themselves are becoming “smarter” and installing electronic systems to monitor the distribution of electrical power, control traffic flow, monitor emergency power usage, and more. And of course, we know that sales of electronic vehicles are on the rise.

Why will increasing electrification and the use of batteries cause the prices of precious metals to rise? It is simply because gold and silver are needed wherever printed circuit boards are used. And there is no doubt that printed circuit boards are about to proliferate as quickly as rabbits in your back yard – probably even faster.

Trend Two:  Demand for Luxury Goods Is About to Increase

As a year of self-denial comes to an end, people are eager to get out and shop again. And another thing – they are getting engaged and getting married, which will increase sales of gold and platinum engagement and wedding rings.

So no doubt about it – the next few years should see demand increase for gold and platinum. And we know that when demand increases, prices do too.

Trend Three: The Bump in Sales of Home Computers Is Not About to Go Away

According to some estimates, Internet usage increased by as much as 70% during the pandemic. And with good reason, because so many more Americans were working from their homes. If you read the trends, you will notice that some analysts are predicting that sales of PCs could actually fall in 2021. Why? Because those experts are thinking that all the people who are working from home have already bought computers and other equipment they needed to set up home offices and connect to their companies.

We do not agree. In fact, we do not expect demand for computers and other equipment to fall in 2021, for the very simple reason that many more American workers will continue to work from home instead of returning to their companies’ offices. We expect people to upgrade or purchase computers, which will create demand and further increase the demand for metals that include gold, silver and even copper.

Trend Four: Small Business Failures Have Made It Easier to Buy Gold Scrap, Silver Scrap and Even Platinum Scrap at Lower Prices

Some manufacturing companies have closed down, leaving behind unused stocks of materials that contain silver and gold. One example? Welding and brazing supplies that contain silver. Also, electronics and other retailers are closing and liquidating unsold inventory.

If you keep an eye on auction listings in your area, you should be able to find bargains in materials that contain gold and silver especially. Remember, you can quickly and conveniently send samples to our laboratories for testing and appraisal. Call 800-426-2344 to learn more.

Trend Five: An Aging Population Will Increase Demand for Medical Devices and Supplies that Contain Platinum

As baby boomers age into their 70s, the number of diagnostic and other medical tests is poised to increase yearly, creating an ongoing demand for platinum, cadmium, and other precious metals.

Let’s look at just one trend. In 2016, about 1.14 million cardiac pacemakers were in use. According to Statistica.com, that number is expected to rise to about 1.43 million by 2023.

Trend Six: Growth in the Aerospace Industries

NASA has just awarded a $2.9 billion contract to SpaceX to develop and build Starship, a new space transport vehicle that is planned to transport humans first to the moon, and later on to Mars. This is big news in the privatization of space exploration, which is expected to increase dramatically in the coming years. Who knows how much this initiative will icrease demand for new technology, new facilities, new rockets, and more? All those will create an increasing need for gold, silver, and platinum.

No doubt about it. A new age of space exploration is about to begin.

What Should You Invest In?

The short answer to that question is that you should invest in gold scrap, silver scrap, and platinum scrap. And you should be sure to maximize the amount of income you generate from recycling it.

That is where Specialty Metals Smelters and Refiners will play a role in your investment success. Why not call our precious metals consultants at 800-426-2344 and let us help you profit in the boom days ahead?

Barry Lenson
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