Precious metals as investment options have been in the news since the last few years. Investments in precious metals have given very attractive returns over the last few years. As a result, there are many new instruments being introduced in the markets which are based on precious metals. These are some of the major reasons that drove the prices of precious metals in the past and are expected to drive the prices in the medium term: Safety The 'safe-haven' factor is a primary reason that drives the demand and prices of precious metals in the international markets. Analysts believe that more money is being pumped into precious metals-based instruments by small as well as large investors to lower the risk in their portfolios. Overall, the investmentled demand for precious metals has increased significantly in the last few years. Many large fund houses and some central banks are investing in gold as a part of their strategy to lower risk.

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