For those of us that do want to have some level of financial security we try to save and invest our money at any opportunity. Some people do this on their own, while the majority of people have some sort of financial professional offering them advice. I personally have an account set up with a financial advisor. Most financial advisors will tell you to “diversify” your money and investments. But, do they really mean it? Yes, they mean it as long as it makes them money.

I feel in order to truly be diversified in your investments you need to have your stocks, bonds, and savings. But, the real gold mine is in precious metals. Very few people invest in precious metals, in comparison to the amount of people in the stock market. The most well-known precious metals are gold and silver, in addition to platinum and palladium (a by-product of platinum).

Precious metals retain their value very well. A major difference between precious metals and stocks or bonds is that gold and silver have actual value, meaning I could take it and give it to someone as a form of currency in some countries. The United States used to back its currency with gold and silver but they sold it all off in the past three decades or so. Now the dollar is backed by Congress.

Precious metals have many uses other than the obvious use in jewelry. Silver is used in X-ray film, gold is used in some electronics as a conductor of electricity, and there are many more for each of the metals. Because of how widely these metals are used and the importance of some of the applications in which they are used, the value will eventually continue to go higher and higher. For example, I have read some projections on the value of silver in the next ten years or so. Some experts predict silver will hit anywhere from $100 to $400 and ounce. The cheapest I have bought some of my silver for was $7.37 an ounce. Whether it hits those highs remains to be seen. But, because of the uses for these metals and the fact the supplies are limited it is a safe assumption that the value will raise as the supply on Earth lessens.

Investing in the stock market is different because you need to evaluate the company, its competition, the future potential, and many more factors. You have to concern yourself with the management of the company and the direction they are taking the company. With precious metals you do not have the same concerns. Gold is gold and silver is silver regardless of what else happens in the world. Its prices can fluctuate but it will not go out of business or be involved in billion dollar lawsuits that threaten the stability of the company. For these reasons I feel precious metals really are the true gold mine.