Historically, mankind has been trading with precious metals for a long time. Today, most investors are adding these treasures as part of their retirement savings plan.
Reason being the value of precious metals appreciates with time and they are not subject to inflation or market instability. They are also easily accessible as long as you have the funds.
Nevertheless, before investing in these treasures we recommend researching more on precious metals and the various investment options available.
With that said, here is a guide to help you understand what they are and how to invest and retire with precious metals and a few types you can consider.
Gold is among the topmost coveted treasures out there. You will find gold in almost every electronic including, cell phones, cameras, radios, laptops, televisions, and more.
It is also used in the making of luxurious pieces of jewelry and medical products. Some investors prefer investing in this metal above all other metals for its arguably high returns regardless of the economic times.
Plus, the price of gold increase with a decline in the US dollar. The analyst explains that this treasure has seen a consistent increase in value for the last five years.
The popularity of silver is closely related to that of gold. Nevertheless, silver is relatively cheaper compared to gold which makes it easier to invest in if you have little funds.
The main reason for silver’s popularity is its multiple uses. The solar panel industry considers silver as an essential component in the making of photovoltaic cells.
Considering the growing demand for renewable energy, the demand for silver is also growing, hence boosting its value.
likewise, silver is also used in the making of other highly demanded items like cables, chips, phones, and more.
This is another valuable metal that is highly demanded in the commodities market. Unlike gold and silver, platinum is rarer and tends to fetch more money when the market is stable.
Actually, only Around 6 Moz (190 metric tons) of platinum is mined annually, compared to 108 Moz (3,300 metric tons) of gold.
Additionally, platinum is mainly used in the car-making industry, chemical industries as a catalyst, making optical fibers, computer hard disks, and more all of which are high in demand. The high demand for this element translates directly to an increase in its value.
Palladium is also popular due to its multiple uses. In the car-making industry, for instance, palladium is used as a part of the internal combustion engines. It is also used in making jewelry, dentistry, and electronics.
The low supply of this element coupled with its high demand is the reason why the prices have skyrocketed over the years. Analysts predict even a higher rise in its prices in the near future. Generally, the properties and the market value of palladium are closely related to that of platinum.
In some aspects, the prices of this metal surpass that of gold and silver since it is very rare. See this link to read more on Palladium https://www.bloomberg.com/news/articles/2021-04-23/how-palladium-became-a-really-really-precious-metal-quicktake.
How to invest in precious metals
If you looking to fill up your treasure chest with precious metals here are ways you can go about it.
- Common Stocks and Mutual Funds
This investment involves picking s certain mining company to buy into. Typically, you invest in the shares of the companies but not directly with the metals. Stocks and mutual funds become very profitable with an increase in the prices of precious metals.
- Commodity Exchange Traded Funds (ETFs)
ETFs is among the most effective method of investing globally. Reason being, it is very easy to trade with and has multiple apps to choose from. The value of a single ETF equals the value of the investments and assets it holds. Plus, you can purchase or sell any of the existing hard assets including silver, gold, platinum, or bullion conveniently. Nevertheless, keep in mind that with ETFs you will not have physical access to the commodity.
Bullions are for those people who prefer having the physical metal with them. This way you are assured of the security of your property. Bullions come in form of coins and bars meaning you must consider your storage space as well. They are also easy to and transfer. Bullions are a perfect option for investors who wish to accumulate their wealth by stages.
- Futures and options
Futures and options are ideal for investors who are extreme risk-takers. It involves betting and predicting the future state of the market for potential returns. You’re most likely to achieve high returns with this investment method. Nevertheless, you must also be willing to conduct extensive research for you to be successful in the future.
Certificates for gold or silver allow you to own the commodity without the need for storage or transportation. However, you may be required to present the physical gold if you are looking to trade them for anything of value. Click here to read more.
Generally, precious metals provide a safe and effective means of expanding a portfolio. As long as you have all the information regarding these metals and you understand the risks involved, you can succeed in achieving your long-term goals. The surging increase in the demand for these treasures is the main reason behind their high prices. You will find these metals in almost every piece of machinery including medical supplies. Precious metal can safeguard your wealth against an unstable economy as well. For instance, the value of gold and silver increases when the dollar declines, and they aren’t subject to inflation.