Gold and Precious Metal Investors are investing in These Emerging Industries.
Gold and silver have always been a very reliable industry to invest in. It makes sense since for thousands of years the economies of nations, kingdoms, and empires have run off of the back of silver and gold, and even today there are a lot of countries that put their money on the gold standard with their nation’s currency rising and falling with the market.
Plus, not only that, but silver and gold are both a finite resource which means that there is only SO much that we can access, and only so much that we currently have available. Once it’s dug up out of the ground and entered into the market, it’s already used up, and we use gold and silver for a LOT of things. From chemical, to industrial, to fancy jewelry and silverware, to decoration and more. Silver and gold are used for a lot of things, and thus is getting used up all the time.
That’s why all of those “Cash for Gold” businesses of the last two decades have sprung up and made a massive killing in the market buying, selling, and rebuying gold at unprecedented rates.
For investors though, there are a lot of other metals that are outside of those metals that they’ve been keeping an eye on. A lot of people don’t realize this, but there have been massive deposits of tin, zinc, and copper that have been recently unearthed and are currently being dug up to be processed and used.
Now, copper has always been a metal that a lot of people scrap, use, reuse, recycle, and process again and again. Copper has a lot of properties that make it useful for use, such as its ability to conduct electricity. However, zinc and tin and other base minerals are used on an industrial scale since they’re all used in the production of machines, metal alloys (such as steel alloys), and computer parts that enable our digital world to work. They, too, are a finite resource and thus only have a small amount that we can work with. However, with finding more abundant deposits of these resources, their initial prices will skyrocket as investors of all kinds will be seeking to buy up as much as they can—or the securities that do—in the hopes of hoarding the metal for later use or for later sale, since the market will end up righting itself again down the line.
Now, there are a lot of downsides to investing in precious metals like gold and silver since not just they, but also other common metals, often fluctuate in value. When the global economy is not going through a recession or contraction, the value of gold, silver, and other metals tends to stabilize, but when a crisis is happening, their value tends to start peaking since many people see investing in them as a safe haven for difficult times.
But then, of course, when their price levels peak much higher than their initial value, as with any other commodity, these prices will eventually come down even lower, as a side effect of a selloff. For instance, in the last decade as you’ll probably remember, gold prices rose up and peaked from 2012 to 2013, but now the trading value for gold in 2019 is just barely reaching the levels we saw in 2011. Also, liquidity when investing in physical gold has not been that great and finding buyers that pay the current value can prove difficult.
All of these hurdles have resulted in traditional precious metals and commodity investors paying attention to a new instrument created out of a different industry but shows the characteristics that these investors originally found in precious metals attractive and made gold and silver such popular commodities.
This new instrument that has a lot of characteristics found in commodities like oil, gas, and precious metals is, in fact, a New Asset Class (NAC) created in the fintech industry.
The fintech industry, one of the most popular industries among venture capitalists and professional investors, aims to lead the market for the next decade. This adds a whole new layer of security for investors of this NAC.
On top of these groundbreaking benefits, this NAC has the added value of being backed by shares of a holding company of a consortium of fintech platforms designed not only to maintain themselves during hard times but also to outperform most of their industry peers. It aims to give investors not only the ability to liquidate easily at all times but also to perform well during all phases of an economic cycle.
There is one fintech company that is giving traditional gold and precious metals investors a solid investing alternative. Click the link below to learn what they are doing.