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 Gold $1,783.10   $3.70  Silver $22.86   $0.29  Platinum $982.10   $13.20  Palladium $2,396.00   $-14.90

Mankind has valued certain metals above others throughout history. Gold, silver, and platinum are some of the highly sought-after metals of our day. They’re valued for their rarity, malleability, and beauty. Their value is easy to understand, and you can trust you’ll get what you pay for when you work with a reputable firm such as First National Bullion. San Diego residents should consider investing in precious metals for the reasons listed below.

They Hedge Against Inflation

Precious metals are referred to as “real assets” because they’re tangible and have intrinsic value, which means they retain their value even if currencies are devalued, which is what happens during inflation. When inflation occurs, the demand for real assets increases, pushing the value of these commodities higher. Precious metals are seen as a hedge against inflation by many investors.

They’re Used in Technology

Everything from smartphones to automobiles to missiles require rare earth minerals, including precious metals. For example, gold is a great conductor of electricity, so small amounts of it are in your phone, computer, and television. Silver is found in antibiotics, since it has the ability to kill bacteria via oxygen absorption. It’s also used in electronics because it’s an electrical and thermal conductor. Platinum is found in computer parts and is used in refining oil for gasoline. As the world becomes more reliant on technology, the demand for precious metals will increase, theoretically increasing their long-term value.

They Exist in Finite Amounts

It’s estimated that humans have mined around 190,040 tons of gold. That may sound like a lot, but if all the gold that has ever been mined were put in a solid cube, it would only measure 21 meters on each side. There’s more silver in the world, with 1,600,000 tons of the metal having been removed from mines. Silver has been used in technology and other applications for a long time, so a lot of the silver that’s been mined is sitting in landfills. When these resources are gone, they’re gone, and there’s no way to make more. Owning a physical asset that’s in limited supply, virtually indestructible, and in high demand equates to a good long-term investment.

They Can Be Traded When Currencies Fail

When currencies fail, precious metals can be bartered for food, clothing, and other essentials. They’ve had value since the beginning of civilization and will continue to be valuable as long as humans engage in commerce.

If you’re building an investment portfolio and looking for the best place to purchase San Diego silver bars, gold coins, and other forms of precious metals, reach out to the trustworthy professionals at First National Bullion. We can answer all your questions and help you find all the information you need on how precious metals can be great investments. Give one of our experienced dealers a call today at 858-666-6570.

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.

 

By |2020-07-14T14:20:41-07:00January 16th, 2020|Miscellaneous|0 Comments