Precious metals should be part of everyone’s portfolio as a long term investment and hedge. They work wonders in case you meet a financial crisis where you need to fall back to something with substantial physical value for a short period of time.
However, we don’t recommend overloading in one particular investment or asset class. The key is to bring in diversification in your investment portfolio. If you’re considering investing in precious metals, you can visit website to find out some information. This post will serve as a helpful guide to you while you compare different metals and which ones give the best return on investment. So let’s start.
Palladium has somewhat similar characteristics and a market like that of platinum. The prices of these metals are often also very close to each other. Precious metal investors often use this metal to add an extra layer of diversification to their portfolio. Even though this metal has so many versatile applications, palladium may be a high-risk investment. Currently, its price carries a high-level downside risk.
Silver is close to gold when we talk about its popularity among investors. It offers a great advantage of being relatively less expensive compared to gold. This makes it easier for investors to get started with a smaller investment and build a portfolio from scratch and grow it over time. Unlike gold, the price of silver swings between its two roles: as a store of value and as an industrial metal. Due to this, its price fluctuations are more volatile than that of gold. However looking at its current market performance, this metal shows a lot of potentials.
Platinum is widely used in the automotive industry as the metal of choice for catalytic converters, making it yet another industrial metal. Nevertheless, it can be a good investment. Just like gold and silver, it’s traded around the clock on international commodity markets. It tends to reach a higher price point than gold when the market and political conditions are stable. This is because it’s a much rarer metal. Thus, over the years, the price of platinum has been above that of gold. However, quite recently gold prices have exceeded platinum. The main advantage of investing in platinum is that its price tends to stay stable across different market conditions.
The most popular of them all, gold is a favourite of precious metal investors. Gold has unique qualities in terms of its physical durability, malleability, and conduction. Although it does have some industrial applications, it’s mainly popular as a base for jewellery and as a form of currency. The value of gold is influenced by its market performance 24 hours a day, 7 days a week. Its price is less affected by the laws of supply and demand. The biggest advantage of owning gold is that it holds its value well even during times of political unrest and economic slowdowns. It also works as an excellent hedge during high inflation periods when compared to cash investment.
So this was our brief guide to different types of precious metal investment. We hope that it will help you take the right direction for your personal investment portfolio. An investment in precious metals is best secured when diversified. If you’re a beginner, though, silver and gold may be the ideal options to start with.