Shopping for the festive season is very exciting, though it is that time of the year that feelings of apprehension come up most (will my gift be appreciated? Useful? Memorable?), if you’ve been thinking about giving gifts that will last into the great beyond…
“Bling it on!”
Gold, Silver and Platinum, together known as “precious metals” in the investing world are best known to be used for jewelry and is treasured for its beauty, cultural importance and store of value. But women know that, (of course! ) Here are more reasons to buy more of the good stuff.
Gold
Is culturally significant in India, China, Southeast Asia, and Middle East which if you notice are among the regions on earth that are experiencing modest to strong growth and is expected to push demand and prices further.
Gold as an investment is also thought of as a hedge (meaning to protect) against falling currency values especially of countries with high levels of debt including US and Euro-area countries. It might not be common practice yet but time will sure come when a jewelry display everywhere will not have a specific price tag on them, but would change every day according to the gold price. I noticed this shopping in Mustafa in Singapore (a popular department store in the city-state open 24 hours – 7 days). Investment pieces should be at least 18K (Can I have Singaporeans tell me what karat sells in Mustafa – I think they don’t even have 18K – more like 22! )
Silver
This is THE metal with highest electrical conductivity thus it is widely used in electronics (mobile phones, TVs, microwave, computers), medical purpose, and more importantly with the strong need for renewable energy source, in solar cell technology (photovoltaic cells). It is used in converting sunlight to electricity. Now that’s powerrrrrrrrr!
Platinum
Rarest of metals used in jewelry as well as many industrial (computer hard disks and electronics) and important medical purposes. It is also experiencing high demand in the current push for renewable energy and environmental technology. Platinum is used for example in fuel cells for generating electric power and running Hydrogen cars that are equivalent to zero-emission vehicles (does not contribute to carbon pollution in the air we breathe).
Collectible Investments
If jewelry is not the “thing” of other people in your life, you can give collectible items made of these precious metals commemorating events or interests. For example, Sports (Olympics,FIFA, Tour de France etc), historical celebrations (i.e. King Bhumibol Adulyadej of Thailand longest-reigning monarch in the world) as well as global icons and people of cultural and worldwide significance (The Pope, Princess Diana etc). Popular for investors are the likes of the United States Mint, Royal Canadian Mint, Singapore Mint, Monnaie de Paris (Paris Mint), Papal Mint (Vatican Mint – Filatelico e Numismatico), Royal Australian Mint, British Royal Mint, Japan Mint, Royal Mint of Malaysia etc. They produce the coins and distribute through various outlets like the Post Office or specialty dealers. Apart from the metal’s value, there’s the collectible and artistic value of these coins.
Back in 2004 when I started to learn about coin collecting:
• 1 ounce of gold is US$400 now it is US$ 1,714 for a gain of 328% in 7 years or 46.85% on average per year. Last year (Dec 2010) when this article was first posted price was price was US$ 1,380 or a gain of 24%.
• 1 ounce of Silver is around US$6, now it is US$32.17 a staggering 436% rise in 7 years or 62% on average per year. Last year (Dec 2010) when this article was first posted price was US$ 29 or a gain of 10.9 %.
• 1 troy ounce of Platinum is US$ 850, now it is US$ 1500 per troy ounce, or a rise of 76.4% in 7 years or 10.9 % rise per year on average. (Last year it was at $1700 per troy ounce prices collapsed this year and cheaper than gold).
Gold has definitely been the “safe haven investment” from the Euro, US debt crisis — which is most likely to go on for some time. So the gifts of gold you’d pick up this year will get even better.
Trading on these precious metals is done on the Commodities market. You would note that the lower entry price of Silver make it very attractive as investment and no wonder it has appreciated considerably over the years. The future generations’ environmental and consumption requirements is also a good indicator of its continued rise in price. So bring the Bling!
(First posted 21 December 2010, updated 12 December 2011 with the current prices!)
