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Everything you need to know about precious metals

As industries incorporate precious metals into more and more of their products, these metals become rarer and rarer, driving the price higher and higher.

When many of us hear the words “precious metals,” our first mental image may be of a pirate caching gold on a desert island or someone who doesn’t believe in banks burying a stash of gold in their backyard. However, precious metals are no longer just the realm of pirates and dragons anymore. Many people are realizing that by working to recycle precious metals or by investing in precious metals, they can make money in a way that is self-sufficient and easy. In this article, we will talk about two methods for making money from precious metals: recycling and investing. However, before we talk about the ways you can make money from precious metals, you will need to understand how the precious metals market works and what determines precious metals prices. 

 

What determines precious metals’ prices?

All precious metals, gold, silver, platinum and palladium have a price and this price can fluctuate daily, depending on many factors. It is easy to check these prices before you buy or sell precious metals to make sure you are buying or selling at the right time. However, for many reasons, these prices are consistently rising when we look at the large-scale change over time. This is because they are used in countless daily products and are irreplaceable and difficult to source for industries around the world. Their uses vary from products we use every day, cell phones, electronics and LED light bulbs, to high-end jewelry and electric cars. 

As industries incorporate precious metals into more and more of their products, these metals become rarer and rarer, driving the price higher and higher. On a large scale, scarcity drives the price of these metals, while on a small scale, the price of these metals is driven largely by how many people are selling on a given day. However, all of this is to say that precious metals retain value very well because they are important to many of the technologies we use today.

 

Why are precious metal prices falling?

The price of precious metals rises or falls every day. This means that there will be strings of days when the price of precious metals falls every day. However, this is not a reason to worry. It is useful to think about precious metals as being similar to stocks. Most of the time, the rise and fall of stock prices are fairly unpredictable; however, if you notice a persistent trend in prices, you might want to research factors that could be impacting the price of precious metals. These factors could include changes in mining regulations or large corporations buying up a specific metal to use in a product. Furthermore, prices of gold may rise in periods of economic recession, when people stop trusting banks and decide to put their money into gold. Fortunately, if metals prices are falling, the fall will likely be temporary, since the trend of using precious metals in technology isn’t going anywhere. 

 

How to invest in precious metals

Precious metals retain their value over time and rise in value during times of economic downturn. This makes them a great option for investing. So what is the first step in investing in precious metals, now that you have decided that precious metals are worth investing in? 

First, you need to decide which metals you should invest in. Gold is a good option if you’re looking for a classic. It is unique because there is more gold hoarded aboveground by people than there is potential gold for mining. However, this means that the price of gold is mostly determined by when people decide to sell their gold, which makes it a tough metal to plan your future around. However, all precious metals have their downsides and upsides. For example, silver experiences severe price fluctuations, which makes it a tough metal to invest in. Platinum is more valuable than gold; however, it is also much more volatile in terms of price. Palladium, an industrial metal, has a little less sex appeal than gold, silver or platinum; however, that does not mean it is not a good investment. Palladium can be a great investment. 

So now you have decided which metal you should invest in, but when should you buy it? This is another instance where looking at precious metals like stocks is useful. When investing in precious metals it is important to buy low and sell high. 

 

What is precious metals recycling?

However, investing isn’t the only way to make money from precious metals. Many people also make money with precious metals recycling. Recycling precious metals can also have a positive environmental impact. The extraction of precious metals has a great impact on the environment. Precious metals are a non-renewable resource that takes a substantial amount of energy to extract. 40% of the world’s carbon emissions are caused by extraction industries. Extraction industries have also caused 10% of all biodiversity loss.

Recycling precious metals is a good idea, but how does it work? Precious metals are recovered in several different ways. Scrap material comes from product manufacturing, unused product inventories can be recycled and many companies have started e-waste recovery programs. By collecting and reselling products that contain high levels of recyclable precious metals, you can make a decent amount of money. The more you are willing to dismantle these items yourself and recover the metals before selling them, the more money you will be able to make on the metals. However, make sure that you are not spending too much time on dismantling, since your time is also valuable. 

As you can see, there are two good ways to make money through precious metals. While you could invest in precious metals and play the market to maximize your resale value, you could also help protect the environment and make money at the same time through precious metals recycling. Both of these are tried and true methods that many people throughout history have used to make money. 

 

Majestic Corporation has been a leading precious metals recyclers, non-ferrous metals and Catalytic converter provider for around five decades. With a presence in the United States, United Kingdom, Malaysia, Italy, Mexico, Australia, Hong Kong and more, as well as a network of precious metals refineries around the world, we work with major customers and partners in a transparent and discrete manner and only offer the highest quality services at competitive prices. 


Contact us here for more information.



MAJESTIC CORPORATION
1 678.691.4257
info@majestic-corp.com

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