As we consider where to invest our money and we look into the future, many of us are always looking for new ways to spread our assets across many different fields and industries. This is a good investment practice, after all, as we should not risk everything on one purchase.
Instead, having a variety of items in our portfolios really helps to ensure financial stability in the long run. One way that you may consider doing this is by getting into the commodity market. The most popular of these are precious metals, of which there are four kinds. I will discuss all of these today, and the potential pros and cons of each of them.
Table of Contents
Palladium
In all honesty, until I started to do more research on this topic, I had no idea what this metal was. It is number forty-six on the periodic table of elements, and one of the precious metals that falls into the platinum category. However, it is different from platinum and perhaps rarer.
It is silver-white and has a low melting point. It is not very dense, as well. If you are curious about some of its uses you can look at this article https://economictimes.indiatimes.com/markets/stocks/news/palladium-why-has-it-become-the-most-expensive-precious-metal/what-is-palladium/slideshow/71831434.cms, but I will explain some as well.
Perhaps the most notable use of it is in car exhaust systems. Most of our supply of it goes towards this, as it helps to purify some of the noxious fumes that comes out of automobiles. Interestingly, it has increased in value lately.
This is largely because the supply has not increased by the demand certainly has. As more countries strive to pollute less, that means we need more palladium in vehicular engineering. If you are looking to invest, just be careful, as many suppliers are allowing consumers to purchase with a “deliver later” promise.
Silver
Silver is likely a metal you are more familiar with. It is quite popular, used in a lot of things (quite notably, in jewelry), and is famous for its white-gray shine and luster. It is truly beautiful, and while it is generally not as valuable as gold (which I will discuss later), it still absolutely has its place among the precious metals.
It is number forty-seven on the periodic table of elements. Most notably, it has the highest levels of conductivity for heat and electricity, and it is more reflective than any other metal. That is probably why it has become so sought after both historically and today.
Silver coins are quite iconic. Many of our coins retain the appearance of it even if they are not entirely made out of it anymore. However, historically, many coins were made with a high percentage of this metal and were very commonly used to trade and barter.
Jewelry is also quite popular, especially when encrusted with various gemstones. Personally, I prefer mine to have sapphires or emeralds, but those are just the types of colors I gravitate towards. There are many different options.
There have been silver mines in almost every part of the world. It is a fairly abundant element as far as the precious metals go, certainly compared to some of the others that are often used in commodity investments. If you are curious for some examples of this, you could look at Rosland Capital for guidance or information.
That being said, there is a lower supply today than meets the demand. This means that the prices of it are raising in many markets. There are many ways you could invest in it (as it is quite popular), including trading in bars or coins. EFTs are another option if that is more your speed. It is really up to you as an investor based on your own preferences.
Gold
Gold might just be the most well-known of all the precious metals. It has been incredibly popular throughout history as a symbol of status, power, and wealth. It is a yellow color and is highly malleable despite being dense and durable. It also can conduct some electricity and heat.
Its main use is in jewelry or currency. As far as the former goes, many royal figures used it to adorn themselves and separate themselves from other nobility. This goes for pharaohs, kings, queens, and even emperors. It was used as a signal of their vast wealth and power.
Unfortunately, the search for it has led to a lot of destruction in the world. We primarily saw this during the Age of Exploration, in which colonizers (beginning with the Conquistadors of Spain who arrived in South America) travelled in search of this metal. Their own repositories were slim, so they needed to find outside sources.
That being said, today the trading of gold is still quite popular. Generally, it is a sound investment, as even in a volatile market, its price tends to become stable.
Platinum
This metal is number seventy-eight on the periodic table. It has a silver-white color and is dense and malleable. It is also ductile. However, it is not conductive.
Compared to other elements, it is fairly rare in the earth’s crust. This is why it is considered so precious. It has many important uses but is quite expensive because of its scarcity.
Some of these uses are in dentist equipment, laboratory equipment, in jewelry, and in the glass making industry. For more information about it in investing, you can look at this page: https://www.thermofisher.com/blog/metals/what-are-precious-metals-and-precious-metals-alloys/.
Investing
The markets for these substances are generally not the most stable. However, when you invest in commodities, it is still considered less risky than some other traditional methods like stocks. That is because their value may fluctuate in the short-term, but historically they all have high value and will likely bounce back in the market.
Especially as they become more and more rare. Naturally, as supply decreased and demand increases, prices go up. That is just how economics work. Of course, this also means that you should probably get into this industry sooner rather than later if you are interested!
