Some of the things that influence the price of precious metals include political stability, strength of the US dollar, economic status of the country, import duties and central bank activities. The most popular precious metals around the world include gold, silver and platinum.
One of the things that may cause the price of precious metals to rise or fall is the state of economy in a given country. If the country is facing economic hardships, most people prefer investing in precious metals, as it is a better way of saving wealth.
When a country is going through a period of political instability, investors may equally prefer to invest in precious metals, as they are universally acceptable and stable. Investors do this because political instability may decrease the value of the local currency.
The next factor that influences prices is the end-user demand. If a lot of people require items such as jewelry, chances are that the prices of the metals used as raw materials will rise. As demand increases, prices also increase.
Another issue that may influence prices is the way the central bank in a given country behaves toward the commodity. If it diversifies away from paper currency, the price of the commodity is likely to go up.