Precious metal investing has been around for decades. Ever since humanity found the irresistible shiny yellow metal, gold, it has had some sort of value. For a time, the asset was used as a currency itself. It then went on to back paper currency and is now an alternative investment. Similar stories apply to other precious metals as well.
If you’re looking to get into precious metal investing, you’ll definitely be wondering which are best to invest in. This guide will help you decide just that.
Gold is a fantastic investment for those new and experienced. It’s generally seen as a stable asset, seeing smaller fluctuations over time. Many use it to hedge the economy, regardless of if it’s good or bad. It has also been around for so long that we can rely on it as a safe investment. The asset isn’t just going to disappear overnight.
Plus, gold is an incredibly durable asset. There’s no way for it to rust, and it’s often used as a form of jewelry. That use case will keep it around for quite a while. Gold also features various ways to invest, such as bullion or the American gold eagle coin.
If you want a long-term asset without experiencing too much volatility, gold is the one for you. Just don’t expect any short-term profits like in the stock market.
Silver has been around nearly as long as gold. However, it serves quite a different purpose. Due to silver’s use in electronics and automobiles, it’s often fluctuating in price. Sometimes demand is high and supply is low, and other times it’s the opposite.
The asset is sometimes used as a store of value, though for shorter terms than with gold. Silver’s volatility makes it somewhat unreliable as a long-term investment. That said, similar to gold, silver will always have a place in the investment economy. It’s not going to become worthless all of a sudden, so you can invest safely and securely in this one.
Platinum is similar to silver in that it has various industry use cases. It’s also used in automobiles and electronics. That said, it’s much rarer than the previous two metals on this list. Platinum is only found as a byproduct of gold and silver. It’s also only really found in two countries: Russia and South Africa. In a way, this lack of diversity allows these two countries to control the export price.
Depending on all of these external factors, the price of platinum can be very volatile. In fact, these industries are often looking for a metal to use aside from platinum since it’s so hard to acquire for a reasonable price. Some consider it the most volatile of all precious metals. Invest at your own risk, and only if you have experience investing.
Palladium, like its counterparts, has some industry use as well. However, it’s a little easier to find than platinum. Russia and the United States are among a few countries that can mine it. This metal is shiny and goes into electronics, and has other industrial use cases.
Interestingly, the asset is also infused into jewelry to give it an extra shine and make it more appealing to customers. On top of this, palladium is able to be crushed incredibly thin, so it’s quite easy to store.
So Which is Best to Invest Within?
There are so many precious metals to invest in. But the best person to make a decision regarding one is you. You’re the one who knows your financial situation best and which of these would fit your investment personality.
It’s advised that you diversify a bit as well and invest in more than one metal if you can afford it. Make sure to do your research and only invest in a metal that works for your budget and isn’t too risky for your tastes. It’s possible to invest in the metals themselves, ETFs, stocks, and more. Check out the various forms of investment, which can also help shape which precious metal fits you best.