Gold and silver have been valued as precious metals for centuries. In today’s world, metals are popular in portfolios and they are stored in vaults. Which of the available metals represents the best investment opportunity? What makes these metals so volatile in recent years?
Investors have many opportunities available to them when it comes to buying precious metals like gold and silver. What are some of your options? Should you invest in a Gold IRA? Should you invest in mining companies? Is there a way to invest in gold and be paid dividends? There are plenty of questions, and you need answers so you can get a better foundation as an investor in precious metals.
The mother of all precious metals is and always has been gold. Gold never rusts, is very durable and it even has industrial applications. It is widely used for jewelry and as both a form of currency and for backing currencies. Gold is not traded on supply and demand as much as it is market sentiment. Investors have access to the gold market 24/7.
Gold in many ways is hoarded, especially by the wealthy. But the smaller investors have access to gold and other precious metals like never before. There is even an app now that allows you to buy precious metals in small increments with $0 account minimums. They store the precious metals physically for you, and you can redeem them at any time. If you prefer to keep them in storage, you simply pay a small quarterly storage fee. The novel app has garnered a ton of attention.
Not only that, but you can now invest in ETN’s or exchange-traded notes that pay you monthly dividends from the premiums of covered calls written on GLD, which is an ETF that tracks the spot price of gold. The yield is good, and you can repeat the process for silver if you want dividends paid when investing in precious metals. Metals are an important part of any portfolio. You may also want to move a 401k to gold in order to start off on a strong footing with a precious metals portfolio.
Gold helps hedge against inflation and is considered to be the best store of value over the long term. If interest rates in other markets start going haywire, that is a sign that you need to be holding gold. It is better to build a substantial position in precious metals over the long run. Gold also tends to skyrocket during regular market resets and downturns, as well as during political upheavals and wars.
Silver is more widely used for industrial reasons, but it is also a popular precious metal that has long held its store of value for centuries. Silver is not as pricey as gold, so it is popular with small-time investors. Silver and gold trade similarly when it comes to the store of value, but it is silver’s industrial uses that sometimes swing that market in different directions based on supply and demand.
Silver used to have a dominant role in film and photography before the release of the digital camera. The growth of emerging markets in third-world countries has brought about a new demand for silver in industrial applications. Did you know that silver is used to make batteries, too?
If that trend continues, how will it affect the market for silver as an investment? You would think it would send it higher, but you always have to weigh the importance of silver’s industrial uses against its store of value. Without overthinking, the best way to handle conjecture would be to incrementally buy silver over the next several years, building up a substantial position.
Platinum is a big part of the commodities markets nowadays, too. Platinum’s price often moves higher than gold. The reason for this is platinum is rarer than gold. What else goes into the price of platinum?
Platinum also has many industrial applications. Automotive catalysts would be #1 in terms of using platinum for industrial uses. Platinum is also a popular metal in the computer industry. Auto sales, just so you know, have a lot to do with platinum prices. Considering how volatile auto markets are and how new platinum’s store of value is compared to gold and silver, platinum doesn’t make it into every portfolio of precious metals.
Platinum is gaining in popularity though, and platinum mines are sprouting up everywhere all over the world.
All things considered, it needs to be mentioned that platinum is the most volatile of the three. Gold is the standard, so most investors start there.
Palladium is not as well known and not available on all platforms to investors. You need a dedicated commodities trading account with a firm that focuses on precious metals if you are going to invest in palladium. Palladium is a substitute for platinum in industrial applications. Palladium is also rare, which helps its value. Most of the palladium in the world comes from four countries, one of them being the US. You can learn more about palladium here: https://gsiexchange.com/what-is-palladium-and-what-is-palladium-used-for/
Jewelers also began using palladium in 1939. Palladium coins were even circulated decades ago in Tonga. Palladium has never before been used to make coins. Did you know that palladium is used in the solar power industry? It is also widely used to make catalytic converters. Another interesting fact about palladium is that it is more durable than its counterpart.
Build Your Treasure Chest Of Precious Metals
If you are looking to start investing in precious metals, the time is now. Build your treasure chest over time. Precious metals help to protect against volatility in many ways. They are part of proper diversification, and yes, I mean that 100 percent. If you want true diversification, gold is a part of your portfolio one way or another.
The most popular way to invest in gold has always been to buy bullion. However, you can invest in the spot price of gold without physically holding or storing the precious metal. You have also been told how you can be paid monthly dividends on the price of gold. I will go one step further and provide you with the ticker, $GLDI.
Whether you hold physical metals, store them elsewhere, invest in these assets digitally or find another way, precious metals represent a great market opportunity. Do not wait another day to diversify beyond your current portfolio. Take on precious metals and watch your portfolio grow. Incrementally buying into at least one of these metals is going to help protect you against inflation and market volatility.