A metal is regarded as precious if it is rare. The discovery of some new sources of ore or improvements in mining or refining processes may sometimes cause the value of a precious metal to diminish. The status of a "precious" metal can also be calculated by the means of high market demand or market value.

Precious metals which are in bulk form are known as bullion and are basically traded on commodity markets. Bullion metals can be casted into ingots or minted into coins. Bullion is valued by its mass and purity. Gold and silver are often seen as thicket against inflation and economic downturn.

Unlike gold, the price of silver keeps on swinging in it's perceived role as a store of value and its tangible role as a industrial metal. As a result, price fluctuations in the silver market are more prone to changes than gold. So, while silver will trade roughly in line with gold as an item to be hoarded, the industrial supply and demand equation for the metal exerts an equally strong influence on price. There is an increase in the interest of investors in trading precious metals as a result of extreme increase in price movements. The prices of gold and silver have undergone considerable fluctuations which are caused by political and market sentiment changes, along with the ratio of demand and supply. Gold and silver are both considered to be an asset and a great number of investors regard them as true stores of value in times when they are in a state of monetary uncertainty, with the outlook that their price is more likely to defy the economic downturns or crises than any other precious metals.

DISCLAIMER: The views expressed in this blog are those of the author and may not reflect those of Jindal Bullion Limited. The author has made every effort to ensure accuracy of information provided; however, neither Jindal Bullion Limited nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Jindal Bullion Limited and the author of this article do not accept culpability for losses and/or damages arising from the use of this publication