There’s a reason why the import prices for metals rose by 25% in just three years. These days a variety of industries require these metals in their products.
This is especially true for any computer products out there. Because of this fact, there’s never been a better time to start investing in metals. But how do you get started? Easy: by reading this guide.
In it, we’ll briefly go over everything you need to know about investing in metals and which specific metals to invest in. let’s get started!
Why Invest In Precious Metals?
We’ve already mentioned that precious metals are taking on new importance in the computer industry, as well as many other industries that require processing chips.
This helps explain why the demand for them has jumped in recent years. However, it’s not the only reason you should consider investing in them. There’s also the economic stability that often comes with them.
There are a lot of historical examples of paper money collapsing over time. But, gold, silver, and other precious metals tend to stay valuable.
It’s been this way for thousands of years. In the past, they were sought after for status and aesthetic value.
These days, they’re vital for certain industries (and they still look great!). Precious metals tend to be a fairly safe investment as well.
That’s part of the reason you see demand jump during times of recession. Lastly, precious metals are not prone to inflation like paper money.
Because you can’t create more of them there’s no threat of it becoming inflated. Since the US dollar is facing increasing inflation this has never been more relevant for many Americans.
What Metals Should You Consider Investing In?
When most people think of precious metal investments their minds immediately go toward gold. And, while this is a great option it’s far from the only option you should consider.
In this section, we’ll be going over our top four picks for the best precious metal investments. That way, you can decide for yourself how you want to invest in metals.
Let’s start with the most popular precious metal of them all: gold. This shiny metal doesn’t rust or corrode over time. On top of that, it’s also incredibly malleable.
This makes it extremely popular for jewelry and currency. However, its ability to conduct electricity and heat also makes it ideal for industrial purposes.
For the most part, gold isn’t influenced by supply and demand. That is because the vast majority of gold is hoarded above ground.
So, then the only time you’ll see the price drop is when these hoarders feel like selling some of their supplies.
Silver is often thought of as a 2nd-place gold. However, precious metal still has an important role to play in the industrial and jewelry industries.
The problem is that silver fluctuates between its role as a store of value and its usage for industrial purposes. Because of this, it’s much more volatile than gold.
You’ll likely see silver prices swing up, then down depending on a variety of factors. So, if you’re looking for a stable, long-term investment, then you should consider gold over the silver.
Platinum is worth a lot more than gold these days. There are two reasons for this. First, there’s a lot less of it. Because so little platinum is pulled from the ground each year it’s inherently more valuable than gold which is more widely available.
Second, platinum is vital for the automotive industry. Specifically, in the production of catalytic converters. These parts are important for reducing the number of emissions that go into the air.
So, automotive industries are eager to get stores of them. Because it’s tied to the auto industry, you can usually track the value of platinum with the performance of the auto sales.
Palladium isn’t as well known as the other three metals on this list. But, it still plays an important role in both the industrial, electronic, dentistry, automotive, and healthcare industries.
Like platinum, palladium is also essential in the construction of catalytic converters. But, since it has more uses than platinum its value isn’t as heavily tied to the auto industry.
How to Start Investing In Metals
Maybe people think that you need to own precious metals to invest in them. But this isn’t true. The reality is that there are lots of different ways to invest in these metals.
One way is by putting money into exchange-traded funds (or ETFs). This is a convenient and extremely liquid way to invest in the metal. That being said, you won’t get any physical commodity.
If you do want a physical commodity, then you will need to invest in bullions, or bars and coins. There are a variety of ways you can buy them online.
Or if you don’t trust websites, then you can buy gold at ATMs or in-person sellers. You can also invest in metals through common stocks. However, we don’t recommend this unless you know how mining stocks are valued by professionals.
The last way is a certificate that proves you own the gold without having to transport it. Just be careful with these options.
No one is going to make paper instead of the real thing. So, make sure that the supplier providing you with the certificate is legitimate.
Appreciate Learning About Metal Investment? Keep Reading
We hope this article helped you learn more about investing in metals. As you can see, metal investments can be a great way to diversify your portfolio. Just make sure you start slowly before diving in.
That way, you don’t bite off more than you can chew, or make any risky investment choices. Enjoy this article? You’ll love some of the similar investment topics we have so keep exploring.