Why Precious Metals Like Gold, Silver, Platinum and Palladium Are Worth Considering for Your Investment Portfolio
Precious metals, such as gold, silver, platinum, and palladium have been a store of value for centuries. They are assets that people invest in to hedge against inflation or economic uncertainty. In this post, we’ll take a closer look at what makes these metals so valuable and why they are worth considering for your investment portfolio.
Gold
Gold is the most well-known precious metal and has been used as currency throughout history due to its rarity and durability. Gold is often seen as a safe-haven asset because it tends to hold its value during times of economic turmoil. It also acts as an inflation hedge since its price tends to rise when the cost of living increases.
One way to invest in gold is by buying physical gold coins or bars from reputable dealers. You can also invest in exchange-traded funds (ETFs) that track the price of gold, such as SPDR Gold Shares (GLD).
Silver
Silver has many industrial uses in addition to being considered a precious metal. It’s used in electronics and solar panels because of its high conductivity properties. Silver prices tend to be more volatile than gold prices but can still act as an inflation hedge.
Like with gold, you can buy physical silver coins or bars from dealers or invest in ETFs that track the price of silver like iShares Silver Trust (SLV).
Platinum
Platinum is rarer than both gold and silver which makes it more expensive per ounce than those other two metals. Its scarcity means it’s not often used for everyday items but instead finds use primarily within the automotive industry where it’s utilized as part of catalytic converters.
Investing directly into platinum may prove difficult for some investors due to minimum purchase requirements on futures contracts; however one could consider purchasing shares in ETFs like Aberdeen Standard Physical Platinum Shares ETF (PPLT) which offers exposure without owning actual platinum bullion themselves.
Palladium
Palladium is another precious metal that’s used in the automotive industry. It has similar properties to platinum but is less dense and therefore, less expensive per ounce. Palladium demand has been on the rise due to increased production of hybrid vehicles which require more palladium than traditional gasoline-powered vehicles.
One way to invest in palladium is by buying physical bars or coins from dealers or investing in ETFs like Aberdeen Standard Physical Palladium Shares ETF (PALL).
Conclusion
Precious metals can be a valuable addition to an investment portfolio as they provide diversification and a hedge against inflation and market volatility. While it’s important to do your own research before investing, buying physical bullion or investing in ETFs that track the price of these metals can be a good place for beginners to start. Remember that precious metals should not make up your entire investment portfolio but rather act as one piece of it.