The best-known precious metals are gold and silver, and it's not hard to understand why they're good assets to add to an investment portfolio. Gold is a key material for jewelry, and investors around the world also use it as a repository of wealth. The truth is that no one can tell you what precious metal you should buy, not even us. As with any other asset class, a precious metals portfolio is better insured when it is diversified.
For beginners, silver or gold may be the best place to start. Once you have at least a portion of each one in your portfolio, many investors begin to integrate lesser-known metals such as platinum, palladium or copper. By diversifying with precious metals, you can make your asset portfolio less risky. Gold and silver are the two most traded precious metals and have much higher market capitalizations than platinum.
However, this doesn't mean that you should ignore platinum when investing in precious metals. Transforming a mineral deposit into a mine in production takes several years, so investors move on to the next “big thing”. While there was a clear demand for precious metals from investors, demand for gold and silver was higher. If you want to invest in currencies, it's important to understand that your investment may involve more than just bullion value.
The widespread use of silver for industrial purposes, even in the rapidly growing solar energy sector, also contributes to the price of the metal. Most of the rounds also have beautiful designs, making investing in precious metals a little more enjoyable than it already is. The history of gold as a valuable metal goes back thousands of years and it remains one of the most popular options for precious metals investors. Despite being an excellent option for all investors, the price of gold, especially in large quantities, can discourage some beginners.
Unless you are an experienced investor and trade at the highs and lows like an experienced professional, your portfolio has likely lost significant value in recent years of global turmoil. There are several reasons why silver is a better investment than gold today, which means that investing in silver today makes more sense than gold or platinum. This scarce metal is mainly used as a catalyst in automotive catalytic converters along with platinum and palladium. However, before rushing to invest your capital in precious metals, it's important to think about the tax implications.
Without access to those markets, U.S. investors cannot invest in emerging miners unless they are comfortable with off-exchange (OTC) trading. Although the IRS gives credibility to platinum as an investment vehicle, the white metal has no 5000 years of history as a currency and protector of wealth.