A limited amount of these precious metals are harvested each year. This scarcity is the reason for their high value.

Investment is always a part of future planning. In the Indian market, precious metals are also considered as an investment.  They are precious because they are rare. A limited amount of these metals are harvested each year. This scarcity is the reason for their high value. The three major precious metals that trade on exchanges around the world are gold, silver, and platinum. 

Many investors around the world hold precious metals rather than other investment assets. Forty per cent of gold produced every year goes into stockpiles or investors holdings and government assets. When the market demand is high, the price value rises.  As investment assets, the three precious metals are different than other commodities. Their prices are different according to the market condition. Hence, they are considered important assets. 

With many buyers for a small amount, the prices of these metals are always on the rise. 

Researchers study the values of precious metals silver and gold in the exchange market and analyse how the fall in the value of the dollar co-relates to the ever-shifting values of precious metals and other major objects of value like oil. There are various reasons for the price rate trends. There are three parameters that can result in these trends. Many factors are responsible for the sharp rise in the price of precious metals. The first reason is the world economy, which is out of the recession. The second parameter is the downfall of the dollar, which is considered as the international currency. When the dollar loses its value, the price of every commodity increases drastically. The third factor is the demand and supply of individual precious metal. For example, historically the price of the value of silver is always than that of the gold. However, it is slowly catching up. 

Precious metals were primarily used for ornaments. However, with their ever-increasing rates, they would solely become an investment. 

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