Investments are normally considered in terms of real estate, stock market, fixed deposits, bonds, etc. But do you know, ages ago, our ancestors had a far more lucrative, stable, and shiny investment method? We are talking about investments in metals like gold, silver, platinum, copper, etc. True to their names, precious metals haven’t gone out of the market at all, but they aren’t the hot-favourites of investors these days.
However, we are here to tell you exactly why they should be on your portfolio. We do not aim to distract you from the more conventional investment methods, but having a bit of metal as your tool would never disappoint you, at least at the times of dire need! Let’s start with gold. This metal is coveted by almost every trading house, not just in Australia but across the world.
At the moment, gold is trading at AUD 2266 per ounce and is up by 0.05%. If you are aiming to buy 1 kilogram of the same metal, the price would be AUD 72,000. The point here is that expect gold prices to go up regularly. You can check the price movement of the metal, visit website. If invested at a time when Gold is at its low, there is no bar at how much profits can be made, when the investor decides to resell it at times of need.
Gold has always been a preferred metal worldwide. The top reasons are:
Even though the U.S dollar is the strongest currency in the world; any fall in its value raises the value of gold. For instance, when the price of the dollar fell between 1998 and 2008, gold prices rose worldwide.
It is a common fact that gold has a very high intrinsic value. According to this article, 90% of the price of gold is tied to its intrinsic value. Over the past thousands of years, those countries that have a huge stock of gold are regarded as strong economies.
As a hedge to inflation
Inflation is a common problem around the world. Smart investors tend to hedge gold against inflation; they buy more gold when the cost of living rises. Over the past 5 decades, the price of gold has soared when the stock price declined. So if you are planning to hedge your investments against inflation, stock precious metals up.
The next metal that we are going to talk about is silver. Silver prices have been constant for a very long time. The demand for silver has remained pretty much the same over the years. However, people still buy silver for various reasons, Some of those are:
New uses of silver
Every time some new industry starts using silver, the demand for this precious metal goes up. For instance, the solar panel industry uses silver significantly, and that is why prices of silver have gone up.
There has been intense speculation on the relationship between gold and silver prices. The price of the latter goes up when gold goes up. This article shows how the two metal prices are connected. The third metal worth investing is platinum. Platinum is the rarest of all metals and is highly useful in sophisticated machines of aviation, electronics, or spatial industries. It is perceived to have a high value, owing to its rarity.
Any rise in the auto industry in Australia or worldwide raises platinum prices as well. Apart from gold, silver, and platinum, one can also explore copper and zinc. Copper has a high strategic value in the defence sector and many investors are greatly interested in this metal.
Zinc too has great potential. Many defence firms use this metal in several situations. Physical metals, quite alike other commodities listed on the stock market, are prone to market cycles. their evaluation isn’t stable. So, depending upon the time of investment and reselling, a person could make serious fortunes out of physical metals!