Gold, silver, platinum, and palladium are precious metals found in jewelry and many modern-day products. But thanks to their intrinsic value, these four metals are more than attractive and useful. They shine as vehicles for diversifying portfolios and holding tangible wealth.
All four metals can be mined as assets that withstand the long-term impacts of inflation, market volatility, dollar weakness, national debt, and economic instability. As a store of wealth, these metals are available as bars and coins and through exchange-traded funds (ETFs).
Here’s a look at how these precious metals can be good for your portfolio—and the answer to the question: “What precious metals should I buy?”
As one of the most well-known precious metals, gold is often considered a strategic asset. Gold enjoys a long track record as:
- A source of long-term returns
- A diversifier that can ease losses during times of market stress
- A liquid asset that has outperformed national currencies and has no credit risk
- A means to boost portfolio performance
Historically, gold acts as a hedge, meaning its price tends to rise when assets like stocks, bonds, and currencies stumble. As opposed to high-risk equities, index funds, and ETFs, physical gold maintains an intrinsic value, and it’s viewed as a store of wealth and a safe haven.
In late July 2019, the price of gold reached a six-year high amid speculation about interest-rate cuts in the U.S. One analyst predicts gold could hit $2,000 an ounce by the end of 2019, up from more than $1,400 in July 2019.
Even though gold tends to bask in most of the market spotlight, silver is no less vital as a precious metal and portfolio supporter. It boasts several practical applications, including as an innovative component in electronics, renewable energy, healthcare, and water purification.
Silver’s many uses, along with its performance history and affordability, make it a compelling addition to any portfolio. Thanks in large part to the mentioned applications, demand for silver should be strong for the foreseeable future—likely translating into an upward trend in prices.
The Silver Institute’s annual World Silver Survey said that global silver demand hit a three-year high in 2018, surpassing more than one billion ounces, an increase of four percent from 2017.
Then in late July 2019, the price of silver jumped to a 13-month peak—pushing past $16 an ounce—as observers anticipated the Federal Reserve reducing interest rates.
Platinum shares benefits with both gold and silver. For instance, it’s commonly used in jewelry, especially engagement and wedding rings. Platinum is also an industrial metal that’s common in automotive, electronics, chemical, and healthcare industries.
Like gold and silver, platinum is considered a safe haven as well as a hedge against inflation and volatility. However, platinum is more useful than gold and more scarce than gold and silver, contributing to its attractiveness as an asset.
According to MarketWatch, palladium’s record-setting prices have snagged the precious-metals spotlight—but at nearly half the cost per ounce, platinum also deserves attention. In late July 2019, the price of platinum stood at nearly $845 an ounce.
Palladium, too, has practical applications. For instance, it’s an essential metal for appliances and electronics, including computers, cell phones, and flat-screen TVs—and in the medical and dental fields. Palladium even has the power to detoxify harmful compounds spewed by car exhaust.
Adding to palladium’s allure is that it’s one of the rarest metals on earth—15 times rarer than platinum and 30 times rarer than gold. That rarity makes it an especially coveted asset.
The world’s supply of palladium continues to be strained, as only two major palladium mines are operating globally. A supply constraint bodes well for future price hikes. Kitco News reports that palladium is set to remain the hot precious-metal asset, with the price hovering close to $1,500 an ounce in late July 2019.
Precious Metals Powerhouse
So which precious metal should you buy? For many people, the answer is all of them!
Together, gold, silver, platinum, and palladium can work alongside each another to safeguard your portfolio and secure economic gain—two essential points in a world that seems overwhelmed with out-of-control risks.
You can’t always anticipate what’s around the corner, but you can always be better prepared. Buy precious metals in the form of coins or bars, and you’ll enjoy the peace of mind that can only come from owning a tangible asset with a trusted legacy, ongoing applicational demand, and substantial future economic benefits.
Want to learn more about how precious metals can fit into your portfolio? Download our latest special report, Precious Metals Report: 2019 Edition, on gold, silver, platinum, and palladium.