Will Rampant Inflation Drive the Value of Precious Metals Up or Down?

Platinum ScrapRecycle and Refine GoldRecycle Precious Metals
Written By Barry Lenson

Whether you have bought beef, gasoline, milk, or home appliances lately, you already know that prices are going up. Inflation is very much in the news. But what effect will it have on the trading prices of gold, silver, platinum, palladium, and other precious metals?

Other questions are probably on your mind too, including . . .

  • Is this a good time to buy gold, silver, and platinum, or have prices already risen too high

  • Should you hold onto the precious metals and scrap you already own and wait for prices to rise even further before you sell them?

  • Do other kinds of investments offer a better potential return right now than precious metals do?

How Will Inflation and Rising Interest Rates Affect the Value of Gold, Silver, Platinum, and Other Precious Metals?

The good news is that as inflation causes the price of all kinds of goods you can buy – cars, groceries, and the rest – it exerts a similar trend on the cost of precious metals and causes their value to rise. Some analysts point out that the prices of precious metals are slower to rise than the price of, say cars or other consumer goods. But nonetheless, “a rising tide causes all boats to rise” and that means that when prices are generally rising throughout the economy, the trading prices of gold, silver, platinum, and other precious metals will increase too.

Another factor will almost certainly keep the value of gold high. It is the fact that investors have traditionally used gold as hedge against inflation. (In other words, when inflation rears its head, these investors buy and hold more gold because they expect that its value will increase more rapidly than the inflation rate.) One effect of this will be an increasing demand for gold on the part of those investors. And we know that when the demand for any commodity increases against a static supply, its price almost always rises.

How Will Gold and Platinum Compare to Silver as an Investment in the Months and Years Ahead?

We cannot predict exactly how the return you can achieve on your silver investments will compare to the return on gold and platinum, but we expect that although silver will increase in value, it might not do so as quickly and steadily as investments in gold and platinum will.

Silver, though needed in a variety of applications from medications to industrial chemicals to electronics, is more plentiful than gold or platinum.  An ample supply of this metal means that its price is less likely to spike up than are the prices of gold or platinum.

Successful Strategies for Investing in Precious Metals in a Time of Inflation

  • Invest in gold, silver, and platinum scrap and hold it until prices increase further.

  • Delay selling or recycling the precious metals you already own until prices rise and stabilize.

  • Let Specialty Metals Smelters and Refiners hold and store your precious metal scrap and instruct us to reclaim the precious metals it contains when trading prices have risen to a level that will give you the return you want from your investments.

Want to Know and Plan More? Give Our Precious Metal Consultants a Call at 800-426-2344

We are here to help you plan sound investment strategies for this current period of high inflation – and for less turbulent days that lie ahead. Call our precious metal consultants today to plan and profit more.

Barry Lenson
Previous

Why Metal Detectors Are Great Tools for Discovering Precious Metals Right Here in North America
Next

As Countries Decide to Cut Trade Ties with Russia, the Price of Gold Is Poised to Rise