Gold, silver, platinum, and rhodium are a sure bet against instability in the global marketplace. It is widely considered by most experts that holding tangible assets is a great way to ensure stability in any investment portfolio. While rhodium and platinum are the obscure members of the group, they are second to the most popular and widely held precious metals, silver and gold.

Silver is easier to own and silver bullion sales are brisk. In the US, the one dollar silver eagle bullion coin program is a perfect way to own the metal. In spite of the popularity of silver and private ownership of the metal in the form of bullion coins, the metal of choice for many savvy investors is still gold. Gold bullion coins are a solid financial investment and stabilizing measure of any investment portfolio.

Eight-five percent of all gold produced to date has been mined since 1900 and 50% of that has been produced since 1960. The largest percentage increases in production took place between 1930 and 1940, when world production rose from 600 tonnes per annum to 1,300 tonnes and from 1980 through to 2000, as it climbed from 1,200 tonnes to 2,700 tonnes. After 2000, it showed signs of stabilizing as production in the English speaking world leveled off and is not expected to increase substantially over the next decade.

Throughout the 1980s, mine production supply increased at a compound growth rate of 8% to 9% per annum.

Australia’s production in the 1980s increased 10 times, spurred by the tax-free exemption for new gold mines and the adoption of large-scale open-pit mining of low-grade oxide ores with carbon-in-pulp technology.

By 1996, the U.S.A. was producing 11 times more gold as it had in 1980 and became a net exporter of gold from a net importer. Most of the increase in U.S. production came from the Carlin Belt in Nevada, which today is responsible for over 85% of total U.S. gold production.

Developing countries production was constant over the 1986 to 2000 period but is expected to increase over the next 20 years as countries relax state controls over investment and ownership of resource assets. Increased demand invariably creates its own supply, but with a time lag. For instance, world gold output did not rise rapidly until three to five years after gold peaked in 1980.

In 2002, gold mining supply declined for the first time since 1994 and has been relatively stable since.

The conventional wisdom contends that the fact fabrication demand of 3,800 tonnes exceeds the mine supply of 2,700 tonnes, that there must be a supply shortage. In reality, scrap sales and official sector sales more than cover the gap.

For future supply, many do not foresee any substantial increase in overall production for the English speaking world. U.S. production is still concentrated in the Carlin Trend in Nevada, with very little exploration and development in other states.

On the world stage, gold has distinctly different markets on different continents. Gold has broken out into record territory in Japanese yen terms. This is a very significant event. The Asian continent is where the big savings are accumulated, outside the oil trade from the Middle East. Among the North Americans, Europeans, and Asians, the Japanese gold price is first to register an all-time high this summer. As Japan exits its seemingly endless period of price deflation that began back in 1990, times have changed for its citizens. Prices are rising, and investors have turned clearly to hedge that inflation. The same Cup & Handle reversal pattern is clear, evident with the euro currency. It indicates a price target of 11.50 to pursue. The yen gold price is negotiating the right side handle when hesitation, doubt, change of hands, and debate occur. Its momentum will move gold higher in Asia. Never underestimate the power of quiet trends in Chinese gold buying.

Despite differences of opinions on exactly how fast gold, silver, platinum, rhodium, and other precious metals will move up, the general consensus is solid about the future of the precious metals market. Gold, silver, platinum, and rhodium have never been worth zero… and in these times of economic uncertainty they can be considered a very safe hedge against recession, depression, currency devaluation, and any paper assets.