The main advantage of platinum is the fact that, since it is not a major investment metal, it is not subject to the same peaks in bear markets as silver. Like gold and silver, platinum is traded 24 hours a day on global commodity markets. It tends to reach a higher price (per troy ounce) than gold during routine periods of political and market stability, simply because it is much rarer. .
The first and most important positive point of investing in silver is that it has a lower cost. The price of silver is much lower than gold and platinum. The lower cost makes silver a better option for small investments. Silver, platinum and metals stocks in the platinum group are naturally volatile.
If you prefer a relatively safe investment, it's best to stick with established producers who generate real cash flow. They have the lowest upward potential, but they also have the lowest downside risk. Major mining companies usually produce several metals, which diversifies risk. And if your mining operations continue to perform well, you could also be rewarded with increasing dividends.
Since silver is relatively more abundant in the Earth's crust than gold and platinum, more silver is extracted every year, and its greater availability means that it will have a lower price than gold and platinum. Platinum prices have been falling for several years, so experts believe that this is the best time to invest in platinum. From the point of view of investment theory, precious metals also provide a low or negative correlation with other asset classes, such as stocks and bonds. Since gold jewelry is often used for investment, for example in India, demand for gold is predominantly based on investment in most of its demand engines.
But which precious metal is best for investment purposes? And more importantly, why are they so volatile?. This, in turn, means that the price correlations of the three metals with each other and with other assets, such as stocks and bonds, will provide diversification benefits if an allocation of some or all three precious metals is added to your existing investment portfolio of other financial assets and securities. These strategic gold reserves provide a store of value, act as a form of financial insurance against financial crises, and allow central banks to diversify their investment portfolios. Here is a brief guide to the different types of precious metals investments that will help you make the right decisions for your personal investment portfolio.
Other investors will choose a precious metals investment policy based on the proven benefits of diversifying precious metals as an asset class and will purchase a variety of ingots and coins of two or more precious metals. The factors that drive the demand for silver are markedly different from those for gold and consist of the demand for jewelry and silverware (25%), the demand for physical investment (15%) and a combined 60% of industrial demand (which includes demand for a wide range of applications in the sectors of electricity and electronics, alloys and welding, photography and solar panels). In some cases, the decision to invest will depend on a personal preference to save on one precious metal rather than another, while in other cases, investors consider the diversification benefits that can be obtained by maintaining a portfolio diversified in two or three of the precious metals, or as a different asset class within larger investment portfolios. The best way to invest in precious metals is to buy the metal directly and maintain its physical form or to buy ETFs that have significant exposure to precious metals or companies that are engaged in the precious metals business.
If a person retains the pure metal, there is also a storage cost associated with the investment. The company is one of the world's largest producers of platinum, palladium and rhodium (it is also one of the main gold miners), while other PGM, such as iridium and ruthenium, are on its product list. .