Thousands of years ago when man first discovered gold and silver, he immediately knew there was something special about it. There are stories of ancient civilizations building vast cities of gold and even worshiping statues of the precious metals. Just take a look at a children’s storybook and you will see that gold plays a predominate role in so many different stories. These days, precious metals investments in gold, silver, platinum, and palladium, are considered the perfect way to hedge against fears of stock market drops.
For centuries, we have known that certain metals are worth more than others and so it is no surprise that we still seek those metals for jewelry, for investments, and for signs of wealth even now. If you determine that one of these metals would be ideal as a way to diversify your own investments, you certainly need to learn a little more about the options you have available.
What Is Bullion?
When you start considering precious metals investments, you will hear the term bullion and you may be curious what this means. How is it different from buying bars of gold or silver or coins themselves? It actually isn’t. This term refers to coins or bars that have been created specifically for investment purposes. They are valued differently based on their weight and the purity of the metal they contain. You can choose which of these options will best work for your own portfolio.
One of the first things you will need to do is determine which precious metal you would like to invest in. You can pick from gold, silver, platinum and palladium, so you do need to learn a little more before you make any purchase.
Of course, gold is the most popular option for precious metals investments just because it is considered iconic. For the past four decades, the value of gold has continually risen, making it a solid and stable option.
In addition, this metal is a very good hedge against stock market stumbles because it actually rises in value when the economy struggles. Gold doesn’t adhere to the traditional ideas of supply and demand and it goes up in value based on other factors instead.
Often referred to as the prince of the precious metals world, silver really shouldn’t be in the shadows. This metal may not be as valuable as gold, but it is a very good option for investments for several reasons. This metal isn’t just valued because it is pretty. It is actually used in industrial processes, which destroys the silver completely. That means supply and demand does come into play. There isn’t necessarily that much silver left in the world, and this will drive prices up over the coming years.
Platinum and Palladium
Many people simply don’t know that much about platinum and palladium, but they can be viable investment choices. Platinum is the most expensive of the precious metals and palladium is much more affordable.
Both are used in industrial processes much like silver. However, because there isn’t much known about the earth’s supply of the two metals, they are considered more volatile than gold and silver. People who choose to invest in one of the two should proceed with a little caution.
We have always known that precious metals are worth our time. The pot of gold at the end of the rainbow, the cities of gold, the Golden Fleece, all point to mankind’s understanding that there is something very special about gold, silver, platinum, and palladium. Precious metals investments can be a great way to build a diversified portfolio to protect against any changes in the stock market.