Going all-in on one investment class has the potential to make you a lot of money. But when the market swings in the opposite direction, you’ll be hurting big time.
That’s why a smart investor will constantly tout the importance of portfolio diversification. You can’t put all your eggs in one basket, or one event or news headline could wipe you out.
When it comes to diversifying, many investors prioritize alternative investments such as precious metals. There are many different types of precious metals you can add to your bag.
During times of political and economic uncertainty, when stocks tend to plummet in value, gold and other metals tend to rise, providing you with hope in the midst of market turmoil.
Keep reading below to learn about investing in precious metals today.
Most Common Types of Precious Metals
When it comes to precious metals, the conversation usually starts with the most common; gold and silver.
Both have been used as currency or a store of value for thousands of years. The reason they are still a good investment today is that they are in high demand and have a limited supply.
Both gold and silver are used heavily in manufacturing, from cars to electronics like cell phones and computers, they serve a very tangible purpose across the globe.
This is why prices for these metals continue to rise over time.
You can invest in physical gold and silver, and even store it at home if you want. But doing so isn’t very smart. For gold especially, you’ll want to buy bars through a platform that holds them in a secure vault on your behalf. Many of these companies exist.
Investing in silver and holding it in your personal possession is less risky since it’s much less valuable than gold.
Investors commonly buy gold and silver bars, coins, or bullion in the US and Europe. You can get them in Australia, too. Click to learn more here.
Less Common Precious Metals
Gold and silver aren’t the only smart investments in the precious metals category. Platinum is another one that is highly valuable.
It’s far more limited across the earth than gold, yet is still just as popular to use in manufacturing, in areas like weaponry, dentistry, and jewelry.
Palladium is similar to platinum, both in terms of rarity and use cases. It’s commonly used in automobiles and electronics as it is resistant to extremely high temperatures.
Other precious metals include ruthenium, rhodium, iridium, osmium, and rhenium, though few investors prioritize these despite their rarity and functionality.
Copper is an abundant metal that is used in many industries. It has value, but its abundance and susceptibility to corrosion mean it’s not very precious.
Add Metals to Your Bag Today
Precious metals are a vital investment class that smart investors can’t ignore. While they were more common in portfolios in years past, today they are more important than ever.
With different types of precious metals available, every investor should add one or two in their portfolio to help weather storms and hedge against inflation.
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