A Beginner’s Guide to Precious Metals Investments
Gold, silver, platinum and palladium have been categorized as valuable metals for a very long time.
People heavily invest in these to diversify their portfolios. There are many ways to invest in these precious metals, which can result in higher profits.
Here is a complete guide to precious metals investments.
Gold is the most unique metal as it’s the most durable, malleable and is demanded by a lot of industries.
Gold bullions and coins are bought for investment purposes. It’s also required in the dentistry and electronics industry. It’s popular in China and India and kept in the form of jewelry and as an asset.
It’s less volatile to the macroeconomic changes and doesn’t align with the fluctuations of the stock market.
When the country experiences inflation, the real estate market experiences many negative effects; however, gold always maintains its value.
Investors tend to buy gold when they have less confidence in the government of their country. Gold provides stability as it stores the actual value of your money.
Even during a political crisis, gold can help people store their savings in a portable way without being damaged.
Silver is known as an industrial metal, which is why it is more volatile to price fluctuations.
It’s used in batteries, superconductor applications, microcircuit markets and many other electrical appliances.
So, the price of silver is mostly affected by its usage rather than the demand in fashion or as a store of value.
Platinum is rarer than gold and silver, and often, there’s a price surge that’s more than gold.
Platinum is also an industrial metal and is heavily demanded in the automotive industry.
People also love to invest in platinum jewelry. As platinum mines are based in South Africa and Russia, the supply depends on many geopolitical factors.
Palladium is a shiny, silvery metal that’s used in many electronics and industrial products. It’s incorporated in jewelry and mixed with yellow gold to make the jewelry stronger. It’s also used in the automotive industry.
How To Invest In These Metals?
You can buy coins or bars and keep them in a safety deposit box in a bank or at home. This type of investment it’s for the long-term and can be liquidated in the near future to earn more than the actual amount invested.
Exchange-Traded Funds (ETFs)
Exchange-traded funds are a convenient method to purchase precious metals and invest in them.
Is It A Good Investment For You?
Investment in precious metals is a good way to hedge against inflation. Around 10% of your total investment should be allotted to precious metals, which helps you reduce the volatility and risk in your portfolio.
You can invest in precious metals with the help of our financial advisors. Contact us to get our assistance in investing in gold and silver and other precious metals, as our experienced account representatives help you understand the market knowledge from spot pricing to economic events.