For most of recorded history, people have considered precious metals like gold and silver to be valuable. Today, savvy investors include these natural assets in their investment portfolios to diversify and protect their funds against inflation. Each type of precious metal also comes with its unique opportunities and risks. Geopolitical issues, supply and demand all influence precious metals’ volatility as an investment.
If you are considering adding precious metals to your investment portfolio, we have a list of which ones to choose.
What Are the 4 Precious Metals to Invest in?
You can invest in alternative investments like precious metals by owning physical metals, gaining access via the derivatives market or investing in metal mutual funds or exchange-traded funds. Below is a list of which precious metals to invest in.
1. Gold
If you’re wondering what is the best metal to invest in right now, look no further than gold. Gold is valuable for its malleability, ability to conduct electricity and heat and durability, as it does not corrode or rust. Popular as a form of currency and a base for jewelry, gold also has some industrial applications in electronics and dentistry.
The market can influence gold’s value at any time, though it’s less vulnerable to supply and demand. Instead, people buy and trade gold primarily due to sentiment. The amount of above-ground, owned gold outweighs the new mine supply. When those who own a large amount of gold decide to sell, the price drops. When consumers want to purchase gold, they do so quickly, increasing this precious metal’s price.
Consumers may wish to own gold for a few reasons.
- Inflation: During times of higher inflation and negative rates of return on other investments, investors turn to gold as an option that may maintain its value and diversify their portfolios.
- Political crises or war: Political upheaval and conflict can lead to investors hoarding gold. You can make your lifetime of savings portable and store it until you need to trade it for shelter, food or safe passage.
- Systemic financial worries: When there is a lack of political stability and money or banks are unstable, investors may seek gold to safely store value.
Common examples of gold you may want to invest in with a self-directed IRA include:
- American Eagle coins
- Canadian Maple Leaf coins
- Austrian Philharmonic coins
- Australian Kangaroo or Nugget coins
- Bars or rounds manufactured by a COMEX- or NYMEX-approved refiner
If you want to guard your portfolio against the volatility of the stock market and currency fluctuation, you may want to invest in gold. Gold is typically the best-known, most popular precious metal investment, but it’s not your only choice.
2. Silver
Silver is another popular precious metal to invest in. This metal’s price changes depending on its perceived role as an industrial metal or as a store of value. Therefore, silver prices may be more volatile than gold. Though silver is similar to gold in that it trades as a hoarded item, supply and demand equally influence its price. Various innovations can affect silver’s supply and demand:
- The use of silver in superconductor applications, microcircuit markets and batteries.
- The rise in demand for medical products and electrical appliances, such as electrical connections and bearings, has made silver a desired commodity.
- The digital camera’s arrival has eclipsed silver’s predominant role in the photography industry.
Common examples of silver you may want to invest in with a self-directed IRA include:
- American Eagle coins
- Mexican Libertad coins
- Canadian Maple Leaf coins
- Austrian Philharmonic coins
- Nugget or Australian Kangaroo coins
Essentially, silver’s price depends on more than its potential as a store of value or use in the fashion world — its applications also play an influential role.
3. Palladium
Palladium is a precious metal with more industrial uses than gold and silver. This asset is a silvery, shiny metal used in manufacturing processes, especially for industrial and electronic products. The following industries also rely on palladium:
- Jewelry
- Dentistry
- Medicine
- Chemical applications
- Groundwater treatment
This precious metal comes from mines around the world, including the United States, Canada, Finland, Australia, South Africa, Russia and Zimbabwe. Though malleable, pure palladium becomes harder and stronger at room temperature, and this metal is more durable than platinum.
Combining palladium with yellow gold creates a stronger alloy than white gold. Metalworkers can use palladium to form sheets for applications like fuel cells and solar energy. Catalytic converters are palladium’s largest industrial use, as the metal is a catalyst for chemical reactions.
4. Platinum
Like gold and silver, platinum trades on global commodities markets around the clock. Amid political and market stability, platinum may fetch a higher price than gold because it’s rarer. Miners unearth far less platinum annually than gold, which can influence its value when demand is high.
The automotive, jewelry and computer industries use the most platinum. Besides supply and demand, geopolitical conditions in mining locations heavily influence platinum’s price. Sales and production numbers in the automotive industry have also significantly affected prices. For example, high demand for automotive catalysts can increase this precious metal’s price.
Since platinum mines are primarily in Russia and South Africa, this could increase platinum prices in the event of cartel-like action. If you want to invest in platinum, remember these influential factors that make this the most volatile precious metal.
Make Precious Metal Investments With Accuplan Today
At Accuplan, you can invest in various types of precious metals via a self-directed IRA. Our precious metals IRA program is among the industry’s most straightforward and complete programs with low IRA and precious metals storage fees. At the same time, an IRA through Accuplan can bring you the best value with flexible investment options. We can help you avoid the complications, mistakes and high costs inherent in other IRA programs for precious metal investments. We streamline the entire process, keeping errors and transaction times to a minimum.
While you can invest in gold, silver, palladium and platinum with a self-directed IRA, remember that other precious metals may be unauthorized, so be sure you are investing in a permitted precious metal. If you are unsure how to proceed with investing in precious metals, we can provide you with the guidance you need.
Fill out an application to begin investing in precious metals or contact us at Accuplan today to learn more about the best ways to put your money to work for you.
*Our information should not be used or relied upon as investment advice but rather simply used for educational and informational purposes only. The information we provide is not intended to be, nor should it be relied upon, for tax, legal, investment or accounting advice.