Monday, April 5, 2010

Precious metal prices benefiting from economic optimism

Silver and gold dealers are likely to see growing demand for precious metals among investors in the coming months, in light of an improving economy that has provided some momentum for commodities in general in recent days.

For example, a recent Associated Press report noted that platinum and palladium prices had gained last week, along with other metals such as copper and silver. Many of these materials are required for the manufacture of vehicles and electronics, among other consumer products.

The wire service added that improving auto sales had fueled the price gains for platinum, which was reportedly trading around $1,669 an ounce last week, and palladium, which was around $490 at the same time.

Changing technology has also created demand for other materials that may only become increasingly valuable in the coming years. For example, various media reports have noted that companies are now seeking out new deposits of lithium in an effort to meet the long-term demand for its use in batteries for hybrid and electric vehicles.

Precious metals have long been seen as a safe haven investment for times of economic uncertainty, but new technologies have helped make these commodities more in demand regardless of what the financial climate may be.