Rising precious metal prices has renewed interest in ownership of physical gold and silver bullion. Anil Shah, President and Founder of World's Money Exchange, a Chicago based precious metals and foreign exchange dealer says "Our precious metals business has increased twenty times, what it was just a year ago. Customers are buying gold to protect their portfolios from a weakening dollar". Other gold and silver dealers that I have recently spoke with have seen similar results.

Why would individuals want to buy physical gold, silver, and platinum?

Throughout history precious metals have been used as a store of wealth and international medium of exchange. It has performed both of those functions for traders of the ancient world, kings of the Middle Ages, American Industrialists and still performs those functions today. Modern day governments still rely on gold and silver as a reserve against currency fluctuations. Precious metal’s high density, durability and enduring value can add a unique level of diversification to anyone’s portfolio.

Gold, silver and platinum bullion is minted or fabricated into coins and bars. There are a variety of government mints and private producers that offer a wide range of products and sizes. This enables the individual investor the ability to acquire precious metals at any investment level.

Rising inflation, a weakening US dollar, sliding housing market, global credit crunch, declining financial markets and the threat of Geo-political turmoil are all reasons why investors are adding precious metals to their portfolios. Chicago-based gold and silver dealer Tony Kowollik says "owning precious metals is like adding an insurance policy to your investment mix. Diversifying your portfolio with precious metals adds to overall stability and affords protection against stock and bond market cycles".

Inflation is the continuing rise in prices. As fuel, commodity and food costs move higher, the spending power of dollars becomes less. Kowollik says "Even though precious metals prices fluctuate, over the long term gold, silver, and platinum has stayed well ahead of the rate of inflation. This makes precious metals an excellent hedge against that risk".

A typical portfolio is invested in primarily traditional assets such as stocks, bonds, and mutual funds. Adding gold, silver, and platinum bullion to a portfolio introduces an entirely different type of asset class. The point of diversification is to protect your overall portfolio from fluctuations in the value of any one asset or type of asset. Economic forces which determine precious metals prices are different and in many cases opposite to forces which determine the price of most financial assets. This is why the addition of precious metals to a portfolio adds a unique level of diversification.

Precious metals are traded and used as a medium of exchange throughout the world. This enables investors to easily buy and sell bullion in most markets. Precious metal’s high density and virtual indestructible qualities makes it a convenient medium for storing wealth.

Gold, silver, and platinum’s enduring value, liquidity, universal acceptance and tangible qualities add an unparalleled asset class to most portfolios. Adding bullion to your investment mix protects your portfolio against inflation and financial market cycles. The wide range of bullion products available enables anyone the ability to get involved with this unique investment opportunity.