Investment in metals is a common hedge against inflation and has been for quite some time. When you invest in metal, you’re sinking the present value of a dollar into a tangible investment unless you are indirectly investing in metals. There are many other ways to invest in and take advantage of metal trends and the fluctuations in the market by means of metal exchange traded funds (ETFs) and mining company stock. More often than not, metals will increase in value over longer periods of time with fluctuations in price trends over shorter periods. Longer term trends have definitely shown increases in value when looking at platinum, gold, silver, and copper.

Metals have been given much more attention over the past few years due to the economic downturn. An investment in metals such as gold, silver, or copper, can be beneficial especially in a global economy such as ours due to uncertainty about the future and preservation of value earned. What do I mean by this? The value of the dollar (i.e. purchasing power) continues to fluctuate over time. As things become more expensive (inflation), the purchasing power of that dollar you have in your pocket reduces. Many people buy metals to sink the value of their dollar into a metal in order to preserve that value. Metals can go down in price as there is risk in any type of investing, however, trends have shown that metals continue to increase in value and the dollar continues to decrease.

Another reason many people invest in metals, particularly gold, silver, and copper, is due to the fact that they are well known and are time tested means of investment and commerce. Metals have been traded amongst civilizations longer than paper currency as metals have been used for bartering purposes for thousands of years and are recognized globally as “holders of value”. The paper money we exchange for goods in this day and age is backed by the trust of the people. People trust that value is present when in reality, it is nothing more than paper.

If you are looking to invest in a metal but cannot afford the high prices of platinum and gold, consider looking to silver and copper.