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    A Beginner’s Guide to Investing in Precious Metals

    By

    April 25, 2016

    Precious metals are the very first form of investment that we had as human beings. And, despite everything that has developed over the years, they still have a place as a form of investment.

    The main three types of precious metal are gold, silver and platinum.

    Each of these is different, and they offer different things to investors and potential investors like you.

    This guide will tell you all you need to know about each of those metals.

    Gold

    Of all the precious metals, gold is the best and most common as a form of investment. The great thing about it is that it is so resistant. It can’t rust or deteriorate over time, meaning that it’s a perfect metal for holding value. Markets control the price of gold, and those markets are open all the time. It has always been a safe way of holding value when the conventional stock markets are in turmoil.

    It also represents a great way of holding off the problem of inflation in times of crisis too. You can see your investment steadily grow over time. Of course, the price goes up and down, but it’s at a good place right now, and it’s far less volatile than most stock prices. Gold price history shows us that it doesn’t change that much, and it’s completely resistant to crisis.

    Gold_Bars

    Silver

    One of the reasons why silver is less popular than gold is down to its price. The price of silver is far less stable than gold, and it can swing either way. That means that you have to be a bit more careful to keep your eye on the silver price to make sure that you don’t lose money. That doesn’t mean that there is nothing good about investing in silver though. In good times, silver can even be a better investment than gold.

    The good thing about silver is that it has lots of real world applications, and you can’t really say that about gold. So, by investing in silver, you will know that there will probably always be a demand for it. For example, it’s used in things like batteries and other electrical products.

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    Platinum

    When the markets and the state of global politics are pretty stable, platinum is a good investment. You need to think about these external factors and how they affect the platinum price though. When markets are volatile, the price of platinum tends to be pretty volatile too. This means that platinum is never going to be the kind of safe and stable haven that gold is for investors.

    Platinum is an industrial metal like silver though. That means that it is attached to the state of the manufacturing industry. This is more true for platinum than it is for silver because it is used in car manufacturing. So, when car prices and other industrial activity declines, the price of platinum will too. And that’s not great for investors. But when things are going well, and the economy is on the up, it is very wise to invest in this precious metal.

    Platinum-t07-103b


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    Views presented in the article are those of the author and not of ED.

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