When you think of precious metals, chances are you think of gold. For centuries, gold bullion has led the way as the precious metal of choice for investors. And while gold has some fantastic qualities – there are other options out there.
Different investors are looking for different things from their assets and more and more people are becoming aware that alternative precious metals may be better suited to their needs.
The differences in volatility, mass and price create substantial differences that smart investors would do well to take advantage of. So to find the right metal for you, here’s our quick guide to some of the less well known precious metals to take your portfolio beyond gold bullion.
Tried and tested gold bullion
Gold has a reputation for being a dependable investment, since its value rises over long periods of time, and sharply during times of economic volatility. Furthermore, the high value of gold makes it a comparatively convenient metal to store larger amounts of wealth.
Gold bullion, therefore, is a good choice for investors who wish to protect wealth over a long period of time. But for those looking for smaller scale investments, or more immediate results, other precious metals could well be a more lucrative option.
Small scale investment
Silver is not as valuable a metal as gold, and is therefore useful for trading on a smaller scale. In the past it has also been more volatile, meaning it was more suited to investors looking to maximise profits over a shorter period of time. In recent years, however, that volatility has levelled out somewhat.
Prices are affected largely by demand in industries that rely on silver, and to a lesser extent copper; the ore from which silver is mined. The most notable of these are electronics and housing.
High risk – high reward?
Finally, platinum and palladium. These two metals are similar to one another in many ways. Firstly, they are both members of the platinum group of metals, and are much rarer than both silver and gold. Because they’re mined largely as by-products of other metals, the supply of these precious metals is inconsistent.
As a result, the price of palladium and platinum bullion is also more volatile than either silver or gold. This creates investment opportunities for investors who are open to taking greater risks. As a general rule, the prices tend to increase in times of economic certainty and decrease during crisis.
We hope that this guide has given you a good idea of the main differences between these metals and which ones are the best investment options for you. To discover more – browse our selection and start investing today!