Gold and Silver before the time of currency was collected and hoarded so profusely that it gave rise to the concept of ‘brokers’ and the ‘markets’. The demand for these metals continued to grow to such an extent that it gave birth to the currencies that we use day to day. The idea of currency was based on the metals which were held in storage.
Precious metals are the original investment that just like land will hold its value despite changes in the market.
How are metals purchased through Capital Security Bank Limited?
All metals purchased through a Capital Security Bank Precious Metals account unless otherwise requested are in the form of the actual asset (i.e bullion or coins). They are real physical metal which depending on the client’s preference are either vaulted in Liechtenstein or Singapore.
What are the different Precious Metals available and how are they valued?
Gold is by far the most popular investment choice. Much of this has to do with its history and the fact that it is the basis (or has been) for certain currencies. Gold is also used as the standard in the International Monetary Fund, which speaks to its value as a commodity.
Gold can be volatile in terms of price fluctuation since it is the most actively traded precious metal as compared to the others.
The actual use of gold as a resource primarily takes place in the jewellery, dentistry and electronics industries.
Gold is measured by “Troy Weight” and by “Grams”. The term Carat is used to designate the percentage of actual gold when the metal is alloyed with other metals. The fact that gold is very soft requires this to be the case in almost any situation.
The most popular use for silver is in tableware, jewellery, coins and photography equipment.
Silver is measured in a similar manner to gold and is often traded in the form of “ingots” or coins.
Platinum is a newcomer when compared to Gold and Silver, it was not discovered by Europeans until the discovery of the new world. However, before that time it was valued by many of the indigenous peoples of the Americas. Though platinum is more precious than gold it is still not as popular.
Platinum has more industrial uses than the other precious metals due to the catalytic properties natural to the metal as well as the fact that it is immune to corrosion.
Platinum is used in jewellery, manufacturing, electrical contacts, dentistry and automobile emission control devices (namely catalytic converters and their offspring). Roughly, platinum is typically valued at twice the value of gold and is traded less actively.
Platinum trades in coins and bullion bars in a similar manner to gold and silver.
Others also available upon request.
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Note: The above is not to be taken as financial advise. CSB recommends that you seek prior independent financial advice and consider carefully whether entering into precious metal transactions are appropriate in terms of your experience, financial objectives, needs and circumstances.
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