Investing in Precious Metals is a great way to diversify our portfolio. Buy spreading your money into multiple metal markets you increase your ability to earn a handsome return on your investment.
The main four precious metals that you need to concern yourself with are Silver, Gold, Platinum and Palladium. When thinking of investing in these commodities. One needs to understand the industries that these metals are mostly used. Lets look at each one and identify their strengths and weakness pertaining to how the influence the market.
Silver has always been a solid investment. Staying relatively calm in the last 5 years, most experts agree that an investment in silver is one of the safest you can make. Silver has found its way into medical antimicrobial uses, making its future in the medical field very interesting.
Gold has always been the most sought-after precious metal in history. Over 161,000 tones of gold have been mined over the course of humankind. With this said we have seen gold jump to its highest price in history. Therefore, I would be hesitant to jump right in and invest a good amount of money in the gold market. Gold Fields Ltd and AngloGold Ashanti Ltd are the leading companies in gold mining. China has now become the top country in gold mining and is projected to drive down the price of gold in the up and coming years.
Platinum has been fairly commercialized over the past 10-15 year by celebrity jewelry designers. The fact is over 75% over the worlds Platinum is used in automobile emissions control. So when investing in Platinum do not think jewelry think auto industry. These are the forces really make the market move.
Palladium is a lesser-known precious metal but still worth the investment. Again, the main applications for Palladium is its use in catalytic converters. As the auto industry fluctuates so does the price of Palladium.