If someone asks you, what is the most precious metal of all time? Chances are, you’d say it’s gold— without batting an eye. Humans have had a little bit of an atypical relationship with gold. Gold is the one picked out over the other metals.
It’s lustrous, shiny, and beautiful, almost alluring — that is why people have always loved creating all kinds of jewelry from it for thousands of years.
Gold is highly-priced and it is made from what scientists call a “precious metal.” It’s soft and it does not rust or tarnish in time. The older it becomes, the more sheeny and valuable it becomes. Hands down, gold is precious and gold is beautiful.
But is it really the most precious metal?
Do you think it is also the best precious metal for a long term investment of your hard-earned money?
Along with those questions, is gold the only precious metal worth investing in, or are there others?
Let’s take a peek and find out how we can answer those aforementioned questions.
Evidently, gold is not the only precious metal there is. Precious metals (like gold and silver) are scarce and are like gold dust, pun intended. They are naturally occurring and have soaring financial value.
Back in the old days, precious metals were significant because they were used as a form of currency. In our day and age, these precious metals are still deemed valuable because of their industrial usage and investments.
There are quite a number of precious metals out there. But the top four in the metals market are gold, silver, platinum and palladium. These metals are the most in-demand and sought-after metals in the market.
They are all good investment choices with regards to compensation. Aside from those four, there are other precious metals that are valuable as well. Let’s have a quick summary regarding some of the precious metals and see how each one could be a good investment choice.
Since gold is the most popular among precious metals, let’s begin with it. This precious metal has always been the most well-liked by most precious metals investors. It has been used as a store of value for eons. Gold is widely known as an investment that is inclined to have a good grip on its value even during slowdowns in the economy.
Precious metals like gold can even ride out in the storm of a major economic downturn and stagnation. If you set gold side by side cash investments, it is an exceptional and superb buffer during times of skyrocketing inflation. Gold is undoubtedly a worthy investment. However, purchasing notable amounts of gold (even an ounce of gold) can be excessively prohibitive especially for investors who are new to this game.
The Silver market comes on the heels of gold and is considered a contender in being popular and favored as one of the most favorites in the precious metals investment. One of silver’s biggest upside is its price. The price of silver is somewhat cheaper than gold. This makes it almost trouble-free to get the investment underway with only a small amount of money. Some easily build their investment portfolio using silver and making it grow over time. In general, silver is used for industrial needs — particularly in renewable energy resources — solar energy. However, silver has its downside as well — like storage issues. A gram of the rest of the popular precious metals is worth more than a gram of silver. This poses a problem in storage.
Aside from gold, platinum is used to a large extent for jewelry as well as in catalytic converters in vehicles. Platinum has even been more expensive than gold in the past. Its main benefit is that it’s not subject to the shifting markets of gold and silver. Since platinum is not considered a major investment in precious metals, its price is more stable in varying circumstances in the market.
The palladium’s market is somewhat similar to platinum. It is also utilized in major industries like the automotive industry. In general, it is less used as jewelry compared to platinum. However, palladium is more frequently used in precious metal investment. Palladium adds a great form of diversification in their investment portfolios.
To begin with, investors in the precious metal market find it tedious to decide which precious metal to invest in. Every metal has its own distinctive market and essential qualities and features. This makes it more difficult for an investor to select which precious metal is a cut above the rest.
It is also necessary to know the different factors that influence the prices as well as the supply and demand for each precious metal before coming to a conclusion on which metal to invest in.
Gold is believed to be the king in the precious metal market. But it’s good to take another look. Some investors actually predict that the gold price will decrease in the not so distant future. Some are looking into the possibility of diverting their investment portfolios into other precious metals. The other precious metals you can very likely invest in are silver, platinum, steel, aluminum, copper, and palladium.
The characteristics and markets of platinum and palladium have been briefly summarized above with the exception of steel, aluminum, and copper.
Steel is among those metals that are chiefly utilized in the construction industry. Just like other precious metals, the prices of steel are influenced by the supply of demand. Some precious metals investors recommend trading off gold for steel. This is because steel is continuously moving upward, in terms of price.
Copper should not belong to brown paper packages tied up strings and warm woolen mittens category. Copper’s status has been elevated to the important precious metals as it bears a strong resemblance to gold and silver.
Yet, in spite of those resemblances with the top two contenders, copper has a reduced price and is used to a large extent among major industries. Copper is needed for circuit boards, wiring, plumbing, and other telecommunications.
Some invest in copper antique coins, copper bullion, yup, they got those too and copper mining companies. In fact, several bigwig investors are optimistic and bullish about copper. So this metal is something to watch out for.
Evidently, the widely known precious metals are silver and gold. There’s like a tug of war between the two — which of these precious metals is a better investment. This is easy to understand as they are actually favorable assets in any precious metals investor’s portfolio. Obviously, gold, as mentioned, is an important element in jewelry.
It is also used as a store of wealth by real estate investors across the globe. Others even regard gold as more valuable than their country’s currency.
Silver on the other hand is also used in creating pieces of jewelry. However, not similar to gold, silver receives a considerable high demand for industrial uses. The metal is also used by different manufacturers for varied usage.
Both the prices of gold and silver are greatly influenced by the poetical and economic climate in the world. Both are deemed as safe investments. People turn to these two precious metals in times of uncertainty. When the prospect of trouble is in the offing, most if not all, investors turn to gold and silver as buffers.
All throughout history, gold, has been immensely sought after and deemed valuable by the human race. You’ve probably seen one movie too many about gold treasures. Chances are you also got caught up in the adventures of treasure maps, pirate ships, and gold panning.
Up to this day, gold is still viewed as an asset of intrinsic value. It is still desired, coveted, and treasured by many. Among investors, gold is thought of as a hedge as opposed to inflation. It is also considered as a currency on its own and an excellent instrument for investment diversification.
But the question remains, is it really a good investment?
Let’s delve into what gold naysayers have to say about it. First off, the value of gold is fixed on supply and demand. And demand, in general shores up or decreases based on fear — making it not easy to put a value or a dollar figure on gold. Some say that gold is not really worth what you think it is. Since 1971, when then US President Richard Nixon ended the practice of converting dollars into gold — the dollar has not been backed by gold anymore.
More than that, gold naysayers say that there are no cash flows made to the investor in gold investing. According to investors, gold as a non-producing asset is its major downside. Aside from not throwing off cash, gold does not provide actual uses in production value in industries. It can’t be used in medical equipment nor electronics or solar panels.
In the end, gold investing is inefficient as a physical asset — investing in it would require costs in storage and security is not tight. So, as an investor, gold investing is a little thorny according to its naysayers. However, it cannot be denied that gold still provides diversification and is deemed as a currency.
Let’s look into what is considered the top three precious metals — gold, silver, and platinum. Gold has been discussed earlier since it is the most sought after among the three. Thanks to Hollywood and treasure stories. Several gold naysayers have said that investing in gold is not really a smart move.
So what about silver?
The first thing that probably pops in your mind when you hear the word silver is — the silverware in your trusty dish cabinet. However, silver is more than that. It can be used in batteries, in those fancy touchscreen gloves, mirrors, dental fillings, and much more.
This is the reason why people would rather invest in silver than gold in the hopes that its low price will proffer a better revenue if the markets change for the better.
But the truth is — silver, just like gold, will not give you financial stability. The prices of gold and silver have been yo-yo-ing and fluctuating for as long as you probably could remember. Now platinum on the other hand is most widely utilized in jewelry making. But it offers a wide range of uses as well from car parts, spark plugs, chemotherapy, and pacemakers to dental fillings.
Yet, just like the other formidable two precious metals — gold and silver, platinum will not save you from inflation.
According to investment experts, the answer is no, not really. Not unless you decide to get into the jewelry industry, these precious metals are great ways to diversify your investment portfolio. But if you take a look and study history in terms of investment, you will see a track record of good investments.
Somehow this will give you a general idea of what could happen in the near future. Now, if you check out gold, you can readily say that its value is based on fear and emotion. It’s like a go-to investment when people fear an economic crash, thinking that if they invest in gold, then it will make them financially safe.
It turns out, that is a fabled myth.
The truth is in the event of a crash, people will go back to trading or bartering. If you don’t want to lose your money, don’t buy precious metals. That’s their mantra.
Despite the precious metals cynics, other investors still believe that it’s wise to at least allocate around five to fifteen percent of their investment portfolio to gold or any gold-related investments — like physical gold. As it is held by most central banks, physical gold is considered as a universal finite currency.
Gold is a great method for ensuring wealth preservation and the best way to pass to the next generation. Get some gold bullion in your investment portfolio as well as other mutual funds related to gold investments and mining shares.
So if the allure of gold is pretty strong and you still want learn about ways to invest in gold, read further.
So what about bullion?
Experts actually say that the best way to invest in precious metals is by purchasing physical gold like bullion bars and bullion coins. You can also purchase through financial products like gold exchange-traded funds or ETFs.
Modern bullion coins enable investors to have investment-grade gold legal tender coins at a very minimal charge. The value of bullion is set almost completely by the price of gold — hence, the bullion price comes after.
Old and very rare gold coins are purchased not just for their precious metal content, but also for their rareness as well as their exquisite and historical appeal. The price of these coins will typically surge quicker than the gold price when it’s bullish and will diminish more when gold is bearish.
It is roughly calculated that only one percent of all gold has been minted and are still in “mint” or collectible condition. Because of its rareness, its value actually shores up higher than the price of gold. Gold coins can be very useful in diversifying your investment gold portfolio.
Perhaps by this time, you are hell-bent on investing in precious metals. There are two methods of doing so. One is to purchase gold, silver, or platinum. Two, purchase an ETF or exchange-traded fund or a mutual fund with gold.
When you purchase precious metal categorically, it’s something you need to keep in your safety box. With the ETS, you buy stocks in the precious metals of gold, silver or platinum, or any of your choice. The stock is linked to the current value of the precious metal that you put your money in.
It’s similar to the stock market, it is likewise a digital game, something that you can do electronically.
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