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The term precious metals refer to the elemental metals gold, silver, platinum, and palladium. They are considered precious due to their very limited supply. Of all the precious metals gold is by far the most recognized. Human curiosity with gold has existed for thousands of years. Pre-dating the Egyptians gold was revered as a highly sought after decorative metal. By 700 B.C. gold was used as one of the first forms of currency. The softness of the metal made it perfect for the making of coins. Gold has been tied to currency ever since, making it still the most valued precious metal in the world. There is a very limited amount of gold available. In fact, if all of the gold ever mined throughout the history of mankind was piled together it wouldn't even fill a basketball stadium. This limited supply makes investing in gold a very stable option, especially in the turbulent global stock markets of today. The stability gold investments offer makes them the perfect investment tool for risk management. Most investment portfolios include gold as a stable foundation for other diversified assets. Savvy investors typically have about 10% of their entire stock portfolio invested in the precious metal. Additionally, most central banks have up to 10% of their entire foreign exchange reserves in gold. The yellow metal reduces overall risk and offers long-term gains for both central banks and private investors. Though gold has always been a stable foundation for most stock portfolios, the turbulent economic times of today make the investment more profitable than ever. The shaky stock market lowers investor confidence. When this happens they return to their safety blanket, gold. The increased purchasing of limited gold supplies in today's markets has caused drastic increases in the prices of gold. Whenever investors panic they rush to buy gold which drives up the price. This cycle is often repeated throughout history. Gold is also strengthened by the over inflation of currencies throughout the world. The monetary stimulus plans of late have pumped more flat currencies into the global economy, thus also increasing gold prices. The inflation chart models for the coming years predict an era of hyperinflation, which will only serve to strengthen the commodity even further. The current global economic climate has sparked a drastic increase in the price of gold. The price of the precious metal has risen by hundreds of dollars per Troy ounce just in the past few months. Additionally, over the past ten years gold prices have risen consistently. Smart investors who invested in gold ten years ago are now seeing almost a 200% return on their investment. Notable investors and politicians, such as Ron Paul of Texas, have openly shared their diversified gold centred portfolio with the public, advocating the strengths of gold investment. The limited supply of gold and its popularity throughout history has made it the most stable investment option available today. The daily highs and lows of today's global stock markets also create the ability for short and long term gains. The price of gold has increased substantially over the past ten years and looks to only grow stronger for years to come, making it the best investment option. Author's Byline: I am intersted in the world of commodity trading and investment in order to help investors make the most of their money.If you are interested in reading more about commodity trading and buying gold, then please visit the following sites: FT.com,Gold investment.com,Bullionvault.com
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