Precious Metals Silver Gold Stock Market Industry Sector

Precious Metals

Last Updated: June, 2020

Investing in Precious Metals

For thousands of years, precious metals have been how commerce operated. Today, precious metals are often seen as a stable form of capital. Gold prices and silver prices drive the global market. But other precious metals are breaking through, especially the platinum group metals.

Known for its alluring properties, gold is both a gorgeous jewellery metal and a form of currency. When investing in gold, one has to realize that gold is not like most commodities.

Precious Metals Silver Gold Stock Market Industry Sector

First, the big market movers in the gold market are the central banks, not consumers. Second, gold often increases in value during times of uncertainty and stability. Finally, the gold market does not have a closing bell; instead, the market is open 24/7 seven days a week.

The second most popular precious metal is silver. Investing in silver can be tricky, as industrial demand for this metal can vary the price. The higher the demand in applications or use by industry, the higher the price of silver. Thus, silver, unlike most other precious metals, can see significant swings.

Precious metal investing comes in many shapes and sizes. One way to invest is through physical items such as coins, jewellery, bullion or bars. As well, you can invest in certificates and precious metal ETFs. No matter the investment, precious metals can adjust risk in most investment portfolios.

Investing in precious metals is a unique opportunity for many. They are unlike any other asset in your portfolio and can help diversify with its stable nature.

The precious metal market is one on its own and has unique ties to traditional stocks. This can be good and bad, and depending on the metal, you may be at the mercy of supply, applications or industry.

Are you attracted to investing in precious metals? First, determine your risk tolerance for this asset class. This will help you determine a percentage of your portfolio to invest. Then, you need to determine which precious metals and what form of investment you want to make. We suggest you seek specific advice from a professional. 

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