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The global precious market value was $181.2 billion in 2019 and is still growing.
Precious metals are valuable investments. They are liquid, easy to diversify, and, most importantly, act as a safe haven against the dollar. Due to their importance, savvy investors always consider them first when looking for significant assets worth investing in.
If you would like to add them to your investment portfolio, you must know the best types of precious metals that would bring the most returns.
This guide will discuss the top five metals that you may consider. You can try others too, but these can guarantee great returns if you invest well. Keep reading.
Gold is the most valuable metal in the world. It is the primary raw material for jewelry. It also acts as the world’s currency, whereby many people compare the value of other assets to it.
The fact that gold is the most valuable metal makes it the priciest too. The price of one ounce of gold is $1900. Luckily, gold metal can be invested in many ways; thus, you can choose the ideal method which fits your budget.
The standard and conventional method of investing in gold is to buy physical gold bars. You can get the bars from reputable dealers or miners. The only challenge with physical gold is that you will have to rely on physical markets.
Also, you might need a great storage system that is well secured. But if you are a busy investor, you might not have all the time to trade physically. Here are other great ways which you can use for investing in gold:
- Buy the gold coins; they are easy to trade and to store
- Invest in gold jewelry; be keen to avoid the fake gold jewelry
- Buy gold from stock companies and invest virtually
- Use options and futures to invest in gold
- Invest in gold ETFs and mutual funds
Gold is a safe haven against inflation. If you can afford it, find a reputable method for investing in it.
Silver is an excellent option for investors who can’t afford gold. It is much cheaper, it is a useful store of value, and you can also use it to hedge against inflation.
However, it does not have a standard price like gold. The price is prone to market fluctuations caused by the forces of demand and supply. Other factors which affect its price of investing in silver are:
- Currency strength– the price for silver goes down when the dollar value is high, and vice versa
- Demand-silver is used in many industries, such as engineering and the medical industry. Its price goes up when the demand is high
- Fiscal policy– governments can dictate their price according to economic conditions
Just like gold, you can invest in silver metal in many ways. Here are the proven methods which bear the best results:
- Silver bullion– it’s a direct method where you buy the silver bars or coins directly
- Silver stocks– many stockbrokers sell silver. Approach them to invest
- Mutual funds and ETFs– this a great option when you want to evade inflation
Silver is one of the best metals to consider if you are a beginner. At just $30, you can get an ounce of silver. You only have to confirm that you are dealing with reputable dealers.
Platinum is the third most precious metal in the world. It is scarce when compared to the other metals, but its value is always high.
In recent years, platinum demand has been increasing as more investors look forward to unveiling this metal’s benefits. The high demand has caused a shortage in supply, bringing a significant platinum deficit in the market.
Nevertheless, many investors are hopeful that platinum metals will be in the market once more in the next few months.
So, why should you invest in platinum? As mentioned, platinum is one of the most promising precious metals right now. Even if the price per ounce is still low, the metals have high demand, making it quite marketable.
If you are interested in this precious metal, try these ways to invest in it:
- Buy the physical platinum coins or bars from a dealer and confirm that the bullion dealer is reputable
- Consider the online platinum market
- Buy shares from a platinum mining company
Platinum is a raw material for many automobile industry parts. Confirm that the company you get shares from has reliable automobile industry connections.
Copper has a diverse market. It is used in the manufacturing industry, the medical field, and the industrial sector. It’s also used in plumbing and electrical firms.
Like the other precious metals, the demand for copper is usually high when compared to the supply. The rising demand for copper has been increasing its stock price. It would therefore be a great decision to invest in such a valuable metal.
You can either invest it physically or online by buying the stocks. However, you should note that the copper market is quite volatile. You should understand all the risks of trading in such a market to protect yourself well.
Last on the list is palladium, a typical metal used to make jewelry and automobile parts. Unlike most metals, palladium is rare to find because of its complicated extraction method.
Nevertheless, you can still get the best quality palladium metal from reputable mining firms or stock firms. Here are practical ways of investing in palladium:
- Buy the palladium minted coins and jewelry and then trade them
- Purchase the palladium derivative from the stock exchange market
- Purchase the Exchange Traded Notes (ETN) and Exchange Traded Funds (ATF)
- Buy futures and shares from a palladium mining firm
Choose the Right Types of Precious Metals
It’s essential to review the available types of precious metals in the market before you invest. Metal investment is a long-lasting decision, and you should only choose the best. If possible, talk to the professional traders who have been in the market for an extended period.
Also, start small, and then invest more metals when you become a seasoned precious metals investor.
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