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With so much currently happening on the world stage, you may ask yourself “should I invest in precious metals?”
This is the right question to ask. With many world governments in fluctuation, the state of your country’s currency is at stake. The cost of energy could rise substantially. The price of food and groceries may go up. And what about the labor costs of your job?
Investing in the best precious metal stocks is one of the safer decisions you can make in times of geopolitical uncertainty. Their prices have a history of keeping their value, and often see a rise when established currencies drop.
So what precious metals are worth investing in and how can you add them to your portfolio?
Continue reading for an overview of precious metals and to learn how to invest in them.
Should I Buy Precious Metal Stocks?
When it comes to investing in metals, there are often two areas of focus: precious metals and industrial metals.
Investing in precious metals offers the benefit of hedging against inflation. Putting money into precious metals is a safe bet when the US dollar starts to sink.
Other benefits to investing in precious metals include:
- Intrinsic value
- High level of liquidity
- portfolio diversity
- ease of purchasing
Types of Precious Metal Stocks
When considering an investment in precious metals, it is to your strength to know the four most prominent types.
The most commonly purchased precious metal is gold. It has a history of holding its value as one of the oldest currencies. As such people tend to lean on the price of gold in times of geopolitical uncertainty.
Nearly as common as gold in terms of the best precious metal stocks is silver. While silver tends to have more volatility associated with it, the precious metal is also much more affordable to invest in. Silver also holds more versatility, with the metal being easier to break due to its low price.
Platinum is relatively new as a precious metal compared to gold and silver, and as such holds a premium over them. A platinum investment has a low-risk entry due to its stability in uncertain times. Investors are also optimistic about this precious metal’s future due to its application in many modern technologies.
Palladium is one of the more rare precious metals, and it’s in high demand in many major industries such as automotive and groundwater treatment. A palladium investment is highly fluctuating due to its correlation with these major industries and offers a diversified addition to your portfolio.
Ways to Invest in the Best Precious Metal Stocks
For those that are just entering the precious metal market, a great place to start is with industry leaders. They typically have low-cost and well-established operations, leading to slow but consistent growth opportunities. Following their trends is a good way to influence your investment decisions.
Precious metal is unique in the ways you can participate in it. While many people consider an investment using exchange-traded funds (ETFs) it is also reasonable to physically purchase and own the metal for future trading.
More Ways to Invest
Investing in the best precious metal stocks is one way to hedge against the future. With technology continuing to improve the way we handle transactions, there are many more options to invest in.
For further ideas on investment opportunities, including cryptocurrency information, check out our Cryptocurrency section.