The precious metal industry is one of the most unique industries in the world, one reason it is so unique is due to the scarcity of these raw resources. Gold, silver, platinum or palladium, most of the surface sources have been mined and mining companies are finding it harder and harder to find more as time passes. There are mining companies that have gone to the extent of mining gold from the sea.
The reason why they go to extreme lengths to mine for these resources is simply because they are scarce and valuable as demand for them is unceasing.
Companies that deal with bullions such as M.A.K bullion rely on a steady supply of gold, silver, palladium and platinum to keep the precious metal industry churning. Most of these gold merchants have resorted to recycling gold and buy gold in any form that they come in. Gold especially takes precedence over the other precious metals and its use varies from cosmetic purposes tight up to full scale industries that range from electronic components to medical purposes.
However, people are more accustomed to associating gold with jewellery and other upscale or high end purchases that are usually expensive due to the gold content. From a different perspective gold is also seen as an investment for people who prefer to keep their wealth in the form of gold instead of currency due to the sole reason that currencies are constantly depreciating in value.
Companies such as M.A.K Precious Metals Gold Buyers and Refiners survive by buying and selling gold at slight mark-ups and the fact that people are constantly buying and selling gold makes it a lucrative business. M.A.K Bullion for example sells at a slight premium to cover the minting costs, but it becomes profitable due to the economy of scale that is associated with it.
The bullion business has been gaining attention over the last few decades due to the exceedingly volatile financial systems that seem to crash every few years without fail, before being patched back by the would be powers such as governments and huge financial corporations that actually cause the financial meltdown in the first place stripping the confidence of the average man in the financial mechanism that govern his or her daily life.
Buying bullion is seen as a solution towards protecting the wealth that people have accumulated over the years. This is true simply because gold always retain its purchasing power in terms of the quantity of gold an individual has. This means that a person having an ounce of gold presently would be able to buy the same amount of goods and services now with that ounce of gold as he or she would be able to buy in 10 or 20 years after currencies depreciate.
This situation effectively shelter s the individual having physical gold possession from the adverse effects of inflation. It is also due to this reason that many seasoned investors buy gold as a way to diversify their portfolio and keep their portfolios balanced in case markets become volatile and unpredictable, as whatever they lose on one end they would gain from the other.