#Collaborative post
Precious metals are metals that have become valuable due to their rarity. There are a few different metals that can be categorised as ‘precious’. However, the big four are: silver, gold, platinum and palladium.
These metals are constantly increasing in value due to their increasing rarity and demand. This has made them popular commodities to invest in. But just which one of these metals is the best investment for you? This post compares the big four precious metals and their pros and cons.
Silver
Silver is roughly 100 times more valuable than stainless steel. Despite this, it is still the cheapest of the big four precious metals by far. Silver coins and bullion are relatively affordable compared to that of other precious metals, making silver a popular investment choice for those on a tight budget. A drawback of silver is that its price can be quite volatile. Over the years, it has experienced some of the most dramatic increases in value of any precious metal, but also some of the most dramatic decreases in value. Silver’s price is also sometimes affected by changes in the stock market due to its use in many industries.
Gold
Gold is almost 80 times more valuable than silver. It is the precious metal that most investors are drawn to due to its long historical association with wealth. Gold is also renowned for being much more stable than silver. It’s experienced its own peaks and troughs throughout history, but they’ve not been as dramatic as silver’s trajectory. On top of this, gold has held out better during recessions, and sometimes even risen in value during these periods. This is because it does not have as many commercial applications as silver and is therefore less affected by stock prices. You can buy bullion and coins directly from the Bank of England gold reserves and from an array of dealers. Gold’s higher price does mean that it can be harder to invest in for those with a smaller budget.
Platinum
Platinum is thirty times rarer than gold. It’s even more valuable than gold, however there have been several instances when gold has surpassed it in value. Although its price is not as stable as gold, Platinum is still a more stable investment option than silver. Platinum’s value has been largely dictated by the health of the automotive industry as this is where platinum is most commonly used beyond jewellery. You can buy platinum bars and coins online.
Palladium
Palladium is the rarest and most expensive of the precious metals. As of last year, it was 25% more expensive than gold and 15 times rarer than platinum. Most people have never heard of it – it is a lot less popular as an investment commodity than other precious metals and most of its demand comes from the automotive industry where it is used in catalytic converters. That said, you can still invest in palladium bullion. Just be wary that the price of palladium is currently falling – this may be a temporary decline in value, however some experts have suggested that it could be a long-term decline due to the reduced demand in catalytic converters caused by the increasing demand in electric cars.