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Investing is a matter you want to approach cautiously and with proper research. One of the most attractive and safe options out there is investing in precious metals. Investors tend to choose among the most valuable metals, such as gold, silver, platinum, and palladium. A savvy investor looking to diversify their portfolio would also set aside a chunk of funds in more than one precious metal, as all of them offer a host of long-term benefits.
As you start out with valuable metals, you’ll need to understand them. In this article, you will learn the pivotal factors of each metal, from its value to its pros and cons, and whether precious metals are worth the hassle.
Table of Contents
Platinum
Platinum is widely available around the globe and traded on a daily basis. It’s not only a rare metal but is also intensively used in various industries (e.g., electronics, jewelry, dentistry, etc.).
Value of Platinum
Platinum is scarce, so its price may be higher than silver at times. The less platinum is extracted, the higher the price increases; hence, some find it advantageous to invest in this precious metal now.
Apart from scarcity, the geographical conditions of platinum’s biggest distributors (South Africa and Russia) also have a big say in platinum prices. Although the demand for platinum may rise in the near future, you should take into consideration how volatile the precious metal is.
The price for platinum dropped during the COVID-19 pandemic, steadily raised in 2022, and now has been experiencing a drop in 2023.
Pros and Cons of Investing in Platinum
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Silver
Similar to platinum, silver is also in higher demand for industrial uses than gold. As for the price, silver is available in abundance and is much easier to work with than platinum. This results in a low price that isn’t as volatile as the price of platinum. But because the precious metal is so malleable, it can corrode and is prone to scratches.
Value of Silver
Silver can be found in any industry (electronics, cars, appliances) because it’s malleable and affordable. The abundance of silver also adds to the lower price of the metal. In fact, silver is cheaper than platinum and palladium and is not considered scarce at the moment.
Although you may conclude that silver is not worth investing in – however, the price of this precious metal is stable (unlike other metals) and highly depends on the global economy. For example, 2020 was a perfect year for selling silver since its price has jumped drastically.
Pros and Cons of Investing in Silver
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Gold
Gold is a number one choice for many investors because this precious metal is highly durable, malleable, and doesn’t corrode or rust. Gold has some industrial use to some extent, but it’s prioritized in jewelry.
Value of Gold
The price of gold isn’t affected by demand and supply but rather by how much gold is sold on the market. This means that when gold is sold in bulk, the price of the metal drops. Gold has been hoarded since ancient times, and until now, it hasn’t lost its ability to hedge against inflation.
It’s hard to predict the exact price of gold as it constantly changes. The precious metal is also scarce, which makes it even more valuable but also volatile at the same time.
Pros and Cons of Investing in Gold
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Palladium
Palladium is the rarest metal out there; it’s scarce and has smaller reserves than gold and platinum. It serves an industrial purpose and is mainly used in the automotive industry. Although it’s an intricate alternative to gold and silver, it’s primarily used across many industries but rarely for jewelry making.
Value of Palladium
Palladium is scarce, which makes the metal more precious than platinum and gold. The metal is similar to platinum in color and features but lighter. Unlike platinum, palladium resources are not as low, but the demand is steadily growing, along with the price.
Pros and Cons of Investing in Palladium
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Palladium vs. Platinum vs. Gold vs. Silver Price
Here are the average closing prices of the four selected precious metals:
| Platinum | Gold | Silver | Palladium | |
| 2023 | $994.33 | $1,936.09 | $23.47 | $1,407 |
| 2022 | $958.06 | $1,801.87 | $21.76 | $2,061 |
| 2021 | $1,088.51 | $1,798.89 | $25.14 | $2,388 |
| 2020 | $893.39 | $1,773.73 | $20.69 | $2,178 |
Choosing Among the Best: Gold, Silver, Platinum, Palladium
Precious metals, especially gold, have been a hedge against inflation during the economic and political turmoil. While the currency may decrease in value, valuable metals remain strong. Purchasing precious metals is available not only in bullion but also in other cheaper alternatives such as coins, mutual funds, and others.
Being a long-term investment, you need to be patient with precious metals and wait for the perfect timing to sell when their price is at the highest. Don’t expect to make quick cash in months – instead, valuable metals are an investment for 5 to 10, or even more, years.
Gold is definitely the most valuable asset as its value increases over time. However, don’t dismiss other metals whose demand may suddenly rise, too.
There is always a level of risk associated with any of these metals. At Gold IRA Blueprint, we’re ready to advise you on how to increase your savings and generate enough cash for a comfortable and worry-free retirement.
Depending on your financial situation and funds to invest, our experts will analyze your case and advise you on the further steps in investment opportunities you have.
Frequently Asked Questions
Is platinum gold or silver?
Platinum is a naturally occurring metal. It is similar to silver in color but slightly darker. It’s rarer than gold and significantly harder.
Is palladium better than gold?
Comparing the two, palladium is much stronger and more durable than gold and is usually more expensive per ounce. There are not many resources of palladium left; hence, it is considered more valuable and precious than its counterpart. However, it doesn’t fully answer the question. Gold coins and jewelry are popular and found everywhere, while palladium is extensively used in many industries.
Palladium’s value depends on the economic conditions, while gold’s value seems to increase each year and drop with high supply only.
Is palladium worth more than gold?
In 2023, with the reduced car sales and increased manufacturing of electric vehicles, the demand for palladium has dropped; hence, the metal is worth less than in previous years. However, earlier years clearly confirm that the precious metal palladium had a much greater value than gold.
Article Sources
At Gold IRA Blueprint, we dive deep into the world of gold IRAs, using trusted sources to back up our insights. Our sources range from official documents to expert interviews, ensuring our content is both accurate and reliable. We also draw on research from reputable publishers to give you the most comprehensive understanding possible. Check out our editorial policy to see how we maintain our high standards for accuracy and fairness. Also make sure to check out our Financial Review Process to have a better understanding of our process.
13 Things You Need To Know About Precious Metals. Goldirablueprint.com. Accessed on 08/14/2023
Precious Metals IRAs: Your Guide to Gold & Silver Investing. Goldirablueprint.com. Accessed on 08/14/2023
Are Precious Metals Commodities? Everything You Need To Know. Goldirablueprint.com. Accessed on 08/14/2023
