The following factors may influence the price of metals:

1. The Allure of Gold

For more than 2,000 years, individuals have owned gold for a wide variety of reasons. Investors and collectors have sought gold as a storehouse of wealth, a proven method of passing savings to the next generation, a shield against tyranny and as a beautiful memorial of past civilizations and accomplishments.

The allure of gold remains compelling for modern investors for many reasons, including: gold’s status as a safe haven asset, gold’s ability to offer a hedge against inflation and fluctuations in the dollar, gold’s reputation as an internationally recognized monetary and financial asset and the portfolio diversification benefits of owning gold and precious metals.

2. Hedge Against Inflation

One of the most common description of gold and silver as an investment is as a hedge against inflation. The thinking is that as the inevitable decrease in buying power affects currencies, owning gold is one way to hedge against the value of your wealth decreasing. Doing so ensures that you will receive a commensurate amount of currency for the amount of gold you own, no matter what the inflation rate is.

3. A Safe-Haven Investment

Another view of gold is as a safe-haven investment. Gold has survived inflation, deflation, fiat currencies, financial crises and natural calamities. For centuries, owning this metal has provided intrinsic value, a storehouse of value and helped assure a measure of wealth for future generations. Gold may be countercyclical to traditional asset classes, especially in unsettled times. That is why gold is commonly referred to as a safe-haven asset.

4. Intrinsic Value

Gold is a physical, tangible asset with recognized intrinsic value.

5. Diversification

Tangible assets like physical gold can add diversity to your portfolio. Among other things, gold can move independently of stocks and bonds and has the potential to appreciate in times of economic uncertainty such as inflation and a weak national currency. Many investment experts believe that adding gold to a portfolio may improve its performance.

Typically the Spot Metals market is somewhat volatile, given the ability to enter and exit trades several times a minute. For this reason, Spot Metals prices may be more susceptible to short-term fluctuations that do not necessarily follow a long-term trend.