As the end of the year approaches, many investors are trying to decide what they will focus on as their big investments in 2014. Should they use their end of the year profits to double down on their current investments, or should they try something new? Anyone who is looking at precious metals, either as a returning investor or a newcomer to the market, should carefully consider the precious metals investment outlook before making their decision in how to use precious metals in their portfolio in the coming year.
How Precious Metals are Different
It can be difficult for even experts to predict the precious metals investment outlook. This is because both investment factors and supply and demand factors tend to work a little differently for precious metals than for other commodities on the market. For one thing, while most commodities see less investment during an economic downturn, precious metals, especially gold, usually see more. People see precious metals as a secure way to store their wealth, since they don’t devalue to the extent that fiat money can. Therefore, when they become concerned about their finances, they tend to invest in precious metals, which drive prices up even in the middle of plummeting prices in the rest of the marketplace.