Everyone knows that gold is a great investment, but what about less popular precious metals such as palladium or platinum? Can they be reliable investments or are they not worth the time and money? More than that, how can you find the best precious metal to invest in for you?
In this article, you'll find the answer to all these questions and more. If you've never tried investing in precious metals before, you no doubt are wondering a lot about the pros and cons of different precious metals, and for good reason. No one wants to make the wrong decision when getting started on their investment journey.
In this guide, we'll go over some of the most popular precious metals to invest in as well as what makes them good (or bad) investment choices. Let's start off with the most popular precious metal: gold.
Investing in Gold
If you're wondering, "Which metal should I invest in?" it's hard to go wrong when it comes to gold. While gold is really nothing more than a shiny yellow rock, it does have several important uses. For example, it is very malleable, it can be used as a conductor, and it doesn't corrode like many other metals tend to.
Gold can be used for electronics, dental fillings, jewelry, and of course, currency. Gold can also be a killer investment if you know what you're doing. Luckily, the gold market is always open so the price of gold is available for monitoring at any time.
Gold is a unique investment because of how it is known as a safe-haven investment. This attribute means that during times of economic turmoil, people will often hurry to invest in gold because its price tends to remain stable no matter what is happening to the economy. This remains true even during times of inflation.
Gold is also very liquid, especially in forms such as bullion coins or certificates. If you ever need to exchange gold for money in a hurry, you shouldn't have any problems. The only downside to gold is the price.
Gold, of course, can be quite pricey which is why it might not be the best investment for beginners. If you want to get started investing, you might want to check out what silver has to offer instead.
A sheet of 25 x 1 gram Gold Bars in assayer sleeves, divisible. Photo by Investor Crate staff, product by PAMP SA.
Investing in Silver
Silver can sometimes be a safe-haven investment much like gold but to a lesser extent. This is because silver tends to suffer from greater price volatility. This occurs mainly because silver has value both for its industrial uses and for its store of value.
This, however, does not mean that silver does not make for a good investment. In fact, people tend to hoard silver just as much as gold, especially during periods of economic crisis. However, many industries at the same time also have a large demand for silver.
For example, silver can be used for camera film, electrical appliances, batteries, and even dental fillings. The benefit of investing in silver is that it is a little cheaper than gold. So, if you want to get started investing but don't want to spend a fortune at first, silver is a great place to start, especially if you want to expand and improve your portfolio.
Always remember, however, that when investing in more volatile items, you should be prepared to lose your money. Even with the safest investments, there is always a chance to lose out on your investment. Of course, there is always the chance that you could win big as well.
Investing in Platinum
Investing in platinum can be tricky because of its nature of being very rare. While gold mines are relatively common, platinum mines are much sparser and can take much more time and money to run. This is because platinum is found deeper in the Earth's crust than gold and these deeper layers of the crust tend to be very dense and hard to mine through.
Because platinum is so rare, there is not a great demand for it on the stock market and it has never been as popular as an investment as silver and gold. It is also not subject to the same rises and falls in price as other precious metals. However, this does not mean that you should ignore platinum as an investment.
The price of platinum tends to be higher than gold per ounce and it is stable no matter what is happening in the economy. Platinum is an industrial metal like silver since it has use in various pieces of technology. However, since most of the platinum mines in the world are in Russia and Africa, the price of the metal may skyrocket if conditions change in those countries.
Investing in Palladium
Many people do not know much about palladium as an investment since it is not a very popular metal. Palladium is commonly used in various industries mainly for electronics such as solar panels. It looks much like silver but is much stronger and it can also have use in jewelry.
The price trends of palladium tend to mimic those of platinum. Since palladium is an alternative kind of precious metal, it can be a great addition to your portfolio if you want something unique to spice it up.
What Is the Best Precious Metal to Invest In?
By the end of this article, you should no longer be wondering about what might be the best precious metal to invest in for you. By knowing more about the different kinds of precious metals you can invest in, you can be more confident whenever you decide to start investing.
1 x 50 gram Platinum Bars also known as Valcambi Suisse CombiBars. Photo credit Investor Crate Staff.