WHY GOLD?
Gold has no borders, is recognized throughout the world, and easily transported. Gold runs counter to the attempts of governments and tyrants to control the finances of their citizens. Gold has true monetary use worldwide and its intrinsic value cannot be removed by any act or policy of government or ruling party. The fundamentals of the value of gold have remained constant for all of known history. One ounce of gold has the same purchasing power today as it did in 1933. We challenge anyone to name another tangible asset that can make this same claim. When all other asset classes are in decline, gold historically advances. Including gold in an overall portfolio structure is an intelligent strategy to protect against adverse market moves, decreased real rates of return, and inflationary cycles.
WHY SILVER?
Silver has recognizable value in every country and nearly every culture around the world. Silver holds its value in the face of economic, political, and social unrest. Silver is highly sought after as both a precious metal and an industrial metal. Silver has historically been the most widely used metal when minting coinage. It is the historic basis for all “Dollar” currencies around the world.
By total weight used, silver is the most popular precious metal in the world. Approximately 450 million ounces are used annually for investment and jewelry purposes. The desire for silver’s white beauty has existed for thousands of years. The ancient Incas of South America called silver “the tears of the moon” because of silver’s enchanting beauty that reminded them of the brightness of the moon.
Today, the largest demand for silver comes from the industrial sector, and industrial demand is continually growing. The industrial uses for silver include: LCD screens, antibiotics, mirrors, electronics, water purification, solar energy, and many other applications. Over the last decade the annual industrial demand for silver has increased at an average rate of 6%. With future demand predicted to continue at an
ever-increasing rate. A balanced Precious Metals portfolio should nearly always include silver to take advantage of silver’s stability in the face of uncertain markets and its upside potential in today’s high demand market.
WHY PLATINUM?
Platinum is 60% more dense than gold and has an extremely high melting point of 3,223 degrees F (1,768 C). Because of platinum’s high durability it was the metal first used to fashion the original 1kg block and 1m measuring rod when the metric system was originally devised in 1795. In 1751 Swedish scientist Theophli Scheffer officially categorized platinum as a “precious” metal and rulers around the world scrambled to have jewelry made with it. This trend continues today with nearly half of all engagement rings being created from 95% pure platinum. Platinum is currently the worldwide choice of the affluent for their jewelry. Even so, the highest demand for platinum occurs in the industrial sector. The industrial use for platinum is so critical that during WWII the United States declared platinum a strategic metal and all use of platinum for jewelry use was forbidden. Platinum is used in catalytic converters, fuel cells, gas refineries, LCD screens, fiber optics, cancer research, cancer prevention, pacemakers, computer hard discs, and even personal razors. If platinum mining ceased today, all above-ground platinum would be exhausted in 2 years through industrial uses.
An investment position in physical platinum is a wise strategy to profit from both the intrinsic value and its ever-increasing industrial importance.
WHY PALLADIUM?
Having been discovered by William Hyde Wollaston in 1803, palladium is relatively new on the scene compared to other rare metals used for physical investment. Palladium is used largely in the jewelry industry and is often substituted for platinum. During WWII when the United States banned the use of platinum in jewelry, palladium was quickly used as a nearly indistinguishable substitute.
Still, the largest use of palladium is for industrial reasons. It is used for catalytic converters, electronics, dentistry, fuel cells, oil refining, water treatment, polyester manufacturing, carbon monoxide detectors, and in many other applications. Over half of the world’s annual supply of palladium comes from Russia and the true amount of the metal in reserve within Russia remains a secret. Russia has routinely disrupted the supply of palladium entering the world market resulting in large and quick fluctuations in the palladium prices. It is this large range of price fluctuations (as much as 1000% in a year) and the price difference between palladium and platinum that gives palladium its attractive investment potential.
Global consumption of palladium increased from 100 tons in 1990 to nearly 300 tons in 2000, and it continues to rise. With consumption currently at over 300 tons per year and total production from mines at 222 tons (2006), the scarcity of palladium has never been of greater importance. An investment position in physical palladium is often a wise choice as part of a Precious Metals portfolio.