The stock market – it makes people millionaires or homeless and everything in between. We’ve all heard the “high risk, high reward” phrase. Conversely, there is also the “low risk, low reward” school of thought. Some people know how to play the investment game very well, while others just spin the wheel and hope for the best. Wherever one may be on this sliding scale, the odds of success or failure are tied to countless variables, many of which exist outside the control of the individuals playing the game.

Enter precious metals. A metal is deemed to be ‘precious’ if it is rare. For example, iron ore is abundant enough to facilitate the production of 3,500 different grades and 2 billion tons of steel globally each year. This material has become the basic construct of the modern world.

Let’s look at gold. A figure commonly thrown around is that the entire global supply of gold would only fill two swimming pools. If we actually do the math regarding total above-ground gold in metric tons and apply density, mass and volume in formulae that we won’t bore you with here, you arrive at the conclusion that we would need 3.27 Olympic-sized swimming pools to hold the entire global supply of gold. That’s not a lot compared with 2 billions tons of steel!

Precious metals such as platinum, gold and silver may be cast into ingots or bars known as bullion. They can also be minted into coins. A defining attribute of bullion is that it is valued by its mass and purity as opposed to involving face value as money. The value of an old gold coin would be determined by its numismatic properties which factor in the quality of the gold, physical condition, age, historic provenance and rarity. You might only have 5 grams of coin in said coin, but it may only have been minted for a short period of time or have other historic significance, thus making it worth much more that just its weight as a precious metal.

Stocks

The stock market fluctuates from day to day, hour to hour, and minute to minute. There are no guarantees. You might strike it rich, or you might lose it all.

Precious Metals

The overall trend is always upward. While spot prices also change reactively to market conditions, gold was around $300 a troy ounce in the 1970s and reached an all time high of $2,067.15/ounce in August of 2020. It’s a safe investment.

Metro Pawn & Gun carries a full range of precious metal bullion and coins. If you are looking to diversify your investment portfolio, we have what you need.

Not in the market to buy? If you need to sell or pawn precious metals in any form, bring them to us and we will make a fair cash offer.

As always, check our site for the most current information regarding operational changes or COVID-related mandates.