If you’re planning on investing in bullion, you must understand each type of precious metal on the market. While most people are familiar with gold investing, there’s a wide variety of other metals you can diversify your portfolio with. In this post, we’ll cover what are the different kinds of precious metals so you can find out which one is right for you.
What Defines a Precious Metal?
While there are numerous types of metal, not all metals are precious. A precious metal has a significant economic value and is typically used for investment purposes. Other metals like steel, aluminum, and copper can be sold for money but haven’t held as long-term investments in the same manner as gold, silver, platinum, and palladium.
Different Types of Precious Metals Explained
Silver
While gold gets a lot of attention in the investment world, silver also has a high economic advantage. Silver may not be as rare as gold, but it comes with several industrial applications. It’s exceptionally resistant to corrosion and has the highest level of electrical conductivity among all precious metals.
You can get your hands on silver coins and bars and use them as a way to safely diversify your portfolio. It’s an economically sound way for new investors to get their feet wet in bullion investing because it’s less expensive than gold.
Gold
No doubt gold is one of the most popular choices for precious metal investing. Several investors buy gold because it’s an excellent way to hedge against inflation and protect their total asset value. Gold was even once used as a currency in the United States and various other nations.
Many people invest in gold purely for financial gain, but many enthusiasts also seek out collectible gold coins. Some popular gold coins include the South African Krugerrand and the American Gold Eagle coin. Gold is also one of the densest metals on Earth.
Platinum
Platinum is an extremely rare metal that comes with several advantages. It’s even rarer than gold. Platinum has several commercial and industrial uses. It has electrical and thermal conductivity capabilities and is extremely resistant to corrosion.
Like gold, you can buy platinum in coins and bars. Platinum also has one of the highest melting points among precious metals. However, gold tends to be a safer investment during times of economic crisis.
Palladium
Palladium is extremely similar to platinum. The two metals even share the same elemental category (platinum group metals). While palladium isn’t nearly as popular as gold, silver, and platinum, a lot of investors are starting to take notice. Tech companies also use palladium in their devices for electrical contacts and other conductive activities, and governments can use palladium in catalytic converters to help reduce pollution.
Final Thoughts
Investing in precious metals can be a fun game once you learn the ropes and the different kinds of precious metals. Finding the right metal for you depends on your wealth and goals. If you’re looking for ways to protect your portfolio against inflation, gold or silver may be the best way to go. For more advanced investors, you can try your hand at platinum and palladium.
Here at Essex Fine Jewelry, one of the top jewelers Atlanta has to offer, we provide a wide range of products to help you get started with precious metal investing. You can shop through our collection of fine jewelry, or call one of our team members at 404-869-2099 today for assistance.