Right from time, precious metals have been an avenue through which people save and grow their wealth. However, there are also a thousand and one ways an investor can choose to invest. The availability of these other choices, therefore, begs the question “what makes investment in precious metal better?”
Also, several investors are unsure of whether a precious metal investment is the right thing for them in the current market. Hence, in this article, we will be discussing some important reasons for an investor to invest in any precious metal. But before we go into all that, let us first discuss the different precious metals to invest in.
Precious Metal – Types
The following are the most common valuable metals to invest in:
Gold is the most common valuable metal and is often considered the valuable metal king. It is often associated with money and investments. It is also considered a very secure value store for assets.
Furthermore, the demand or supply of other items and assets do not affect the price of gold. This makes the metal a “haven” during economic issues. There are also several practical applications for it in several industries. Visit https://allusesof.com/chemical/10-uses-of-gold/ to learn the various uses of gold in several industries.
Also, its price has stayed stable regardless of the numerous turbulences several markets have endured globally. Due to this, it has become a very desirable medium of investment.
Next on the list is silver. This asset is sometimes considered to be gold’s poor cousin. However, we beg to differ since the price of this asset goes alongside gold’s price.
Also, with the happenings in the world, silver demand and price are even going higher than that of gold. Some experts even say that it has surpassed or outperformed gold recently and this is said to be due to the pandemic. Just like the king of valuable metals; silver is a common choice when investment is concerned. It also has several applications in the circuitry and electrical appliance industry.
To put it simply, although some persons consider it to be a low-budget gold wannabe, silver is often more reliant when it is in an environment with a great economy and its demand is high. However, it happens to be more volatile than gold. Despite this, it still equally serves as an inflation hedge.
When most people consider investing in valuable metals, they often limit themselves to silver and gold. Whereas other metals that are also great investment choices exist. One of such is platinum.
It often trades higher than gold. Yet, it is not as common because it is rarer. Also, it is a key component used for catalytic converters in the automobile industry.
As if these are not enough, the metal can affect one’s health both positively and negatively. For example, it is hypoallergenic. Therefore, if it is worn as jewelry, it will not result in allergic reactions or rashes.
Yet, platinum salts can induce kidney damage, DNA alternations, and cancer.
This is not as known as the metals mentioned above. However, its industrial uses are quite more than all the metals already discussed. It is used commonly in several manufacturing processes and is simply a slivery shiny metal. You can find it in several industrial products and electronics.
Aside from this, it is used in the following industries: dentistry, medicine, groundwater treatment, and jewelry.
Countries like the US, South Africa, Canada, and Russia are the major suppliers of palladium.
Reasons to Invest in Precious Metals
Since we know the several types of metals we can invest in, let us now discuss the several reasons to invest in them…
1. Global Demand
As we have already seen, these assets are used in the manufacturing of some essential everyday products like batteries, jewelry, electronics, silverware, phones, cars, and so on.
Gold is used in the treatment of lagophthalmos, a medical condition that makes a person unable to shut their eyes. Therefore, they are constantly in demand.
Last year, the demand for these metals was said to have experienced a surge, this is especially true for silver and gold. These assets have encountered several uncertainties, yet their demand only keeps increasing.
This should tell you it is a market you want your money to be in. Since they experience uncertainty but maintain their “haven” characteristics, you can rest assured that your wealth is secured. Their various market growths are also quite stable.
The purchase accessibility of these metals is something that should get any investor ready to invest in them. You can get these assets from market dealers, banks, and bullion traders.
Aside from being accessible, they are also abundant and available in their respective markets. Once you have adequate knowledge and the required resources, acquiring any of them would not be an issue.
There are also several ways to invest in them; therefore, your investment choice cannot be limited. You can choose to hold them in their physical forms or buy stocks in a mining company, and so much more. Check right here if you wish to learn more about the options open to you as regards investing in precious metals.
However, if you choose to hold any of these assets in their physical form, then you must be certain you have the proper facility to. For starters, a safe is important.
3. Hedge against Inflation
As we have said, having a gold investment gives you an inflation hedge. What do we mean by inflation hedge? It is simple. When your investment is an inflation hedge it protects you from the reduced purchasing power of your currency.
Therefore, this hedge investment will retain its value or even increase it even when the economic environment is not favorable. This is exactly what a precious metal investment will do for you.
In this article, we have discussed some of the important reasons investing in valuable metals is a great investment choice. We also discussed some of the common precious metals an investor can invest in.