When you hear the words ‘precious metals’, it’s gold and silver that instantly come to mind for most of us. But platinum is on the rise, and not just because of record sales.
Investment in precious metals can be extremely beneficial to your portfolio. Not only can they help you rake in the big bucks, they can also help protect you from major market crashes.
The greatness of gold
Gold has many properties that contribute to its versatility. It doesn’t rust or corrode and it’s a great conductor of heat and electricity.
It’s also traded in the form of gold bullions, which are literally giant chunks of this valuable metal. And of course, we use gold for currency.
The price of gold can be difficult to predict because, unlike other metals, it’s not necessarily moved by supply and demand. It has more of a sentimental function. But there are some perks to having your hands on some gold.
For instance, we often see gold as a safety net in terms of investment. When politics, banks, or money itself grow unstable, gold always manages to hold some value. It’s also a physical way to store savings, and can easily be traded for its worth when the time comes.
It’s the ultimate fear investment. When the market panics, the gold price rises. When inflation looks to be rising, gold tends to increase with it.
Admittedly, gold hasn’t changed much in value recently. But a bullish rise could be just around the corner.
With the ridiculous position of the US dollar, a looming major war breakout in the Middle East, and an anti-establishment party movement across Europe…
It’s looking like the perfect golden storm.
Is silver second?
The main difference between silver and gold is that silver has more of an industrial purpose. This can be both good and bad, depending on the position of the market.
If silver-based appliances are in high demand, so too will be the demand for silver. But if a better alternative is discovered, the price of silver could drop overnight.
But whether positive or negative there’s no doubt that the value of silver is extremely volatile. It can fluctuate up and down quite rapidly.
Often, it can be hard to predict these movements, which is why it’s good to keep a close eye on any silver news.
Why platinum is precious
The main thing platinum has going for it is rarity. Compared to gold and silver, a lot less of this metal is extracted from the ground each year.
While it’s also appealing to jewellers, platinum is primarily in demand from the automobile industry. This means the price of platinum is proportional to the automobile market.
A recent downside is that a cheaper alternative — palladium — has been discovered, to combat the rarity of platinum. This could mean demand for platinum decreases which would bring down its trading value.
To make sure you stay up to date with all of these precious metal-moving market jumps, check out this page regularly.
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