ExecutiveChronicles.com | Precious Metals That are Worth Investing in Amid Turbulent Markets | The global economy has slowed down, and the commodities markets are not exciting as earlier. Hence, people are looking for new investment avenues that can give them good returns. Gold, silver, and platinum are three precious metals that are traded on most futures exchanges worldwide. However, they are not only your options if you want to invest in precious metals amid turbulent markets.
To know more about precious metals that are worth investing in, click here.
Gold is the grand-daddy of all precious metals. It is one of the most widely-known precious metals that have generated interest in humanity. Gold is highly malleable, durable, and a good conductor of heat and electricity. These characteristics make the metal useful in several industries like electronic component manufacturing.
You can buy gold in different forms like bullions and bars. The prices of gold ride on the sentiment and not on factors like supply and demand. Investors have hoarded gold in huge quantities. When hoarders need to liquidate their investments, they sell gold that causes the price to drop.
If they want to increase their gold stocks, the supply is absorbed, and the prices rise.
Silver is also a popular investment destination for people investing in precious metals. However, silver is not as pricey as gold. It has diverse uses in industries, and hence you will notice substantial price fluctuations in silver. It is not clear how long silver will be used in further product developments, making it hard to perceive its future value.
Platinum is also traded globally in the futures market. It is much rarer than gold and can get you higher returns in turbulent times. Like silver, platinum also has more important industrial uses. It is primarily used in automotive catalysts to reduce emissions. The computer industry also uses platinum in several IT and communication products.
Rhodium and Palladium
Palladium and Rhodium are rare metals and have a greater demand across the globe. Palladium is a crucial component in pollution-control devices of trucks and cars. Its prices have doubled in one year, making it more attractive than gold as an investment. Rhodium is considered an incredibly rare metal. It is mainly used in auto-catalyst. Due to its rarity in nature, it is more expensive than gold.
Diversify Your Precious Metal Investment Portfolio
If you plan to invest in precious metals, don’t invest all your money in traditional metals like gold and silver. Palladium and Rhodium belong to a new breed of precious metals that have higher industrial uses. These metals are rare, and the demand will always outstrip supply that will raise their prices.
On the other hand, platinum is considered the next profitable investment avenue after gold. This precious metal has witnessed a sharp increase in prices due to the continuation of the gold rally (steep increase in prices). Due to the continual rise in gold prices, it has become less attractive to new investors. For such investors, platinum seems to be a safe investment option that can get them good returns.
To sum up, diversifying your precious metal investment portfolio is a wise decision. Since the prices of precious metals are independent of each other, investing in all five metals can give you the benefit of easy liquidity and higher returns in turbulent times.