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INVESTMENTS AND PRECIOUS METALS: HOW AND WHY

Precious metals contribute to a lot of activities in this world. The fact that they are rare and difficult to be extracted makes them very precious. Moreover, they are essential to our everyday lives because of their very unique properties. They include the melting point, high conductivity, resistance in terms of their physical and chemical nature. It allows their applications in a variety of manners.

 

Some of the best known precious metals include gold, silver, platinum, ruthenium, iridium, osmium, palladium and many more. Most of them are being used for ornaments, household items and even as bars for investments. The market rates of these metals are increasing each day, and they act as an asset that can be stored for future purposes.

This article lets us look at the different ways these precious metals can contribute to investment plans: 

  • Gold

It is an asset that has turned the heads of almost everybody in society. When it comes to investment and storage of wealth, gold is the ultimate way for this. Investors purchase this precious metal in the form of coins or bars. One thing that should be noted is that these metals should have the international standard set to them. The set standard is 999.9, which calls for the purity of gold, which is 99.9%.

They are available in various forms including, bars and minted tablets. 

  • Platinum

Platinum is a metal that is seen as very little than gold. This precious metal is used for various purposes, ranging from being used for emissions control to jewellery and ornaments. This metal is rare, but this is not the only reason why they are popular. This metal is hard to wear, and it never tarnishes. However, they are more volatile than gold when it comes to pricing. 

Platinum is a metal that completes the portfolio of precious metals. 

  • Silver

Even though it is not very rare like gold or platinum, these metals have also taken up their space in the list of valuable metals. Their value is lower in terms of weight, but they complement the gold holdings in the investment portfolio. 

HOW TO INVEST IN THESE PRECIOUS METALS?

When it comes to investing in precious metals, the first thing that would come to mind is to buy them immensely. That is just one way of investment, whereas there are many others. They include:

Physical Investments and Bullions: The first possible method of investment is buying these physical assets. The precious metals are available in bars, tinted tablets that can be bought and stored safely in a locker. Ornaments can also be bought, which can not also be worn but also stored. When it is in coins and bars, they promote liquidity of the funds even when the market trends are bad. 

Equity Funds: Investing in the company stocks of the miners of these precious metals is another way of investment. In this way, they can even be leveraged according to the price movements and be traded in exchanges. However, one should be thoroughly aware of the behaviours and market trends of these mining stocks. 

Certificates: At present, investments in precious metals are possible through certifications. In this way, people can own metals without physically holding them. They would have a fixed tenure, and the returns of the investment are also assured. However, it can only give the impression of owning something without physically having them. 

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