Gold and silver have been recognized as valuable metals and were desirable assets for a long time. Even today, precious metals have a safe place in an investor’s portfolio. Which one is best for investment purposes? And how volatile are they?
There are different ways to buy into precious metals like gold, silver, and platinum, and various good reasons why
you should give in to treasure hunt.
All That Glitters Is Gold
We will start with the granddaddy of them all: gold. It is unique for its durability. It has some industrial applications in dentistry and electronics, but we know it basically as a base for jewelry and as a form of currency.
The value of gold is determined by the market 24 hours a day, seven days a week. Usually, gold trading is based on sentiment analysis- its price is less affected by the laws of supply and demand. When hoarders feel like selling, the price drops. When they want to buy, a new amount is quickly absorbed, and the gold prices are driven higher.
The Silver Bullet
The price of silver jumps between its role as a store of value and its role as an industrial metal. As a consequence, price movements in the silver market are more volatile than gold. So, while silver will be traded in line with gold as an item to be hoarded, the industrial supply/ demand equation for the metal exerts an equally strong influence on its price.
As its siblings gold and silver, platinum is traded around the clock on global financial markets, specifically in commodities markets. It tends to induce a higher price than gold during standard periods and political and economic stability simply because it is much rarer. Far less of the metal is pulled from the ground annually.