World Nations Move Towards Precious-Metals-Backed Currencies

Many global currencies are still associated with the United States dollar, relying on it to dictate their value. Substantial dollar devaluation is causing currencies pegged to the dollar to be undervalued, as well. The Chinese Yuan is one of these currencies, but China appears to be moving towards accumulating hard assets in the form of precious metals. This movement is evidenced by the Chinese government’s push for private ownership of silver and gold, in addition to its increase in production and import of precious metals.

Many believe that China cannot develop without the help of Western civilization, but China is not the only nation to begin movement away from the dollar. Other Asian countries, as well as African and South American economies have also shown signs of jumping ship. Should the trend continue, the US could find it increasingly difficult to continue its deficit lifestyle.

As China discretely amasses precious metals, while prices are low, the US continues to tout the dollar’s rise in global currency markets.

Precious Metals Depositories Increasingly used to Store Personal and Organizational Assets

Financial turmoil on a global scale has encouraged investment in physical stores of precious metal bullion. Silver and gold are maintaining strong positions in the portfolios of organizations and individuals wishing to protect monetary assets.

For those who want physical control over their highly liquid precious metals, bank depositories, like vaults and safe deposit boxes are no longer the answer. Recognition of silver and gold as “safe haven” assets, should international fiscal emergencies proliferate, is causing many to seek private depositories to store their bullion.

These specialized storage facilities often hold customers assets off their balance sheets, in order to maintain the exclusive claims of their owners. Twenty-four-hour security, separate insurance and immediate availability for direct shipment and transfer are convenient and protective features of these sequestered accounts. Strict adherence to operating protocols for handling investor holdings provides additional security for investors. Private vaults are typically located close to transportation hubs for greater accessibility to transport methods.

Precious Metal Ore in Landfills Trumps Mine Production

Every year thousands of tons of electronic devices are thrown into the world’s landfills. Scrapped in favor of newer, lighter, more efficient, more powerful and faster versions, used electronics are now becoming one of the most rapidly growing forms of waste generated by humanity.

According to the first Global e-sustainability Initiative, or GeSI, landfills now constitute veritable treasure troves of recoverable precious metals. When accounting for precious metals in proportion to total volumes of urban landfills, figures indicating available ore are estimated between forty and fifty times larger than actual mined ore volumes. If all this metal were to be recovered, the value could be as high as $21 billion dollars per annum. Currently less than 20% of this metal is actually being recycled. 7,500 tons of silver and 320 tons of gold are used annually in the production of consumer electronics.

Benefits generated by recycling of precious metals, like silver, copper and gold include reduced emissions from mining and manufacturing processes.

Eight World Economic Trends that Lend Credence to Precious Metals Investments

Precious metals, like silver and gold seem poised for a rebound. Growth assets, although recently plunging, are showing promise for an impending uptrend. The reasons for a likely rebound are many and varied, as the world continues to struggle in the throes of economic imbalance. Some of these reasons are outlined below.

1.) Monetary easing in developing China
2.) Weak US manufacturing numbers
3.) Continuing European interest rate cuts
4.) LIBOR manipulation scandal in the United Kingdom
5.) Precious metals hoarding by Central banks in most global economies
6.) Continued growth of electronic and technological uses for silver and gold
7.) Potential round three of Quantitative Easing
8.) Easy money generated by printing presses to quell global fiscal turmoil

Many have abandoned silver and gold as paper instruments have recently stabilized, due to minor squelching of fears that European economies could experience financial collapse. Despite this fact, history is on the side of the precious metals bulls.

Aircraft Recycling Boosts US Economy

Unknown to most average citizens, the aeronautics and space industry is an enormous consumer of precious metals. Gold, silver and platinum, among other valuable metals are used in a variety of manufactured aircraft components. Temperature control, conduction and lubrication are only a few of the properties provided by precious metals in the manufacturing of aircraft. Precious metals are used for everything from soldering wire to electronic parts.

Surprisingly, nearly eighty percent of an aircraft can be recycled when it has terminated its flying life. Radioactive and leaching processes are commonly used to recover an estimated $6,000 to $18,000 worth of precious metals from the engine, alone. Commercially operated aircraft graveyards are located mostly in the southwestern United States where more land is available to contain lumbering aircraft carcasses.

PMRP, also known as the Precious Metals Recycling Program, is run by the US Department of Defense. Government recycling programs save tax dollars, reduce the environmental impact of mining and conserve precious natural resources.