All The Shiny Things…
When it comes to investing in precious metals, gold isn’t the only game in town. Not only does looking further beyond gold make investing more fun, it’s also vital to a healthy, robust diversification strategy. There are a few great metals to invest in besides gold and they all have their unique character when it comes to performance. Head to Golden Eagle Coins for a walk among all that glisters…
Silver’s spot price varies between $15 and $16 per ounce right now and while this is much lower than its 2011 high of $50, it’s holding its own. Silver investors are in clover because their metal of preference is always finding new ways to make itself useful in medicine and industry, as well as in jewellery, of course. These new roles will make sure that the price of silver continues to rise over the next few years.
The thing about silver is that while its value is usually around 5-10% of that of gold, it has a lot more movement simply because it has a smaller market. At the moment, any new tech announcement can give it a huge uptick, but this is often followed by the inevitable fall because lots of people sell their suddenly-more-valuable Ag off. Once you learn the ways of the silver market, these choppier waters can net you (sorry…) some tidy profits.
This metal is also dual-use, having an important part to play in medicines and the automotive industry as well as in jewellery. Its current spot price is around $835 per ounce and it tends to cost around a third less than gold, weight for weight. Investors should always have an eye on platinum because its supply is often restricted, which sends the prices up a bit.
Platinum is actually a really useful metal to finish up your diversification campaign, even if you only add a small amount.
Even though we’re used to seeing copper everywhere in our homes – plumbing pipes, electrical wiring and so on – it is actually a precious metal. It’s prized not just for the way it looks, but because of its conductivity, ductility and its malleability. It has a lot of uses in industry, in plumbing and also in air conditioning systems as it makes a great heatsink.
Copper is also slightly lower in price at the moment, compared to earlier in the year, so it may be a good time to strike because after a lull, there’s always an upswing. Right now, the spot price is around $2.70 per pound, which means you’d have to buy a lot to make a decent profit; this is why most people invest in copper mines and ETFs instead of physical bullion.
Chances are that you’ve never given palladium the time of day when you’re thinking about precious metals. It’s nowhere near as shiny and glam as gold, but it has similar uses to platinum but with the huge advantage of sometimes being much cheaper. At the moment it’s selling for around $1,250 per ounce, though, which is good news for last year’s investors.