However, in the meantime, this article will be a good introduction to the different precious metals that are being traded, and the roles they play in the stock market. Also, you\u2019ll learn about the things you need to take into account when managing your investment<\/a> portfolio.<\/p>\n Gold is the most popular precious metal, and for good reasons. The shiny metal has captured hearts for centuries and its usage has not been limited to just currency. A significant percentage of gold production each year (estimated to be around 40%) finds its way into the stockpiles of individual investors and governments. Also, gold\u2019s price is less likely to be affected by supply and demand than other investments. <\/p>\n Silver, unlike gold, isn\u2019t an absolute safe haven. The price of silver may fluctuate greatly between its role as a store of value and its role as an industrial metal. This gives its supply and demand equation a strong influence on its ever-fluctuating price. Because of its various applications as an industrial metal, it may provide investors with capital appreciation opportunities. <\/p>\n Silver is currently used in a number of industries, mainly in jewelry production, superconductor application, microcircuit markets, and electrical appliances.<\/p>\n Platinum is traded 24 hours a day on the global commodities markets. Because it\u2019s rarer than gold and less of it is mined, it tends to fetch a higher price per ounce than gold. There are a couple of other factors that determine its price. Like silver, it\u2019s considered an industrial metal. It\u2019s used as an automotive catalyst in petroleum and chemical refining, as well as in jewelry.<\/p>\n Due to the recent legislation passed worldwide on \u2018clean air emissions\u2019 with regard to automobiles, platinum prices have been determined largely by the automotive industry.<\/p>\n Palladium is the notably lesser-known metal on the list. Unlike gold, silver, and platinum, which enjoy a lot of popularity for their aboveboard usage in jewelry, the use of palladium in jewelry is more understated. It\u2019s an industrial metal that\u2019s mostly used in different manufacturing processes, which include electronics, medicine, chemical applications, and groundwater treatment.<\/p>\n Safe haven is a type of investment that\u2019s expected to retain or increase in value when the market is in a volatile state. In the event of a market turndown, an investor will seek out a safe haven in order to limit their exposure to loss.<\/p>\n Gold is the perfect example of a safe haven. For countless years, it\u2019s been considered a store of value. Because it\u2019s a physical commodity, and its value can\u2019t be determined by the whims of a singular government, it serves as a good form of insurance in times of market turbulence. Investors can stockpile their money in gold and wait for the market to regain stability. The other precious metals may also serve as safe havens, depending on the specific nature of the market being traded in.<\/p>\n As a portfolio diversification tool, precious metals provide an attractive alternative to mainstream investments, such as equities and fixed interest. Diversifying your portfolio by investing in precious metals is a good idea, as it\u2019s a way of decreasing loss and risk, while also keeping your overall investments stable.<\/p>\n This is where you engage in alternate purchasing in large or small quantities, depending on your overall financial strategy. You can buy large quantities when you need a safe haven. Alternatively, you can liquidate your precious metal assets relatively quickly.<\/p>\n Most precious metals, namely gold and silver, are available as bullion. Whilst the content and type of precious metal will always be at the forefront of consideration in terms of value, it should be noted that the form the precious metal comes in can influence its price and the premiums that are associated with it. Such, then, has an influence on the demand for the item for investors and collectors.<\/p>\n For example, a basic bar of gold or silver has a high liquidity level, thereby increasing its value. A corresponding rare coin with the same content as the bar might not have the same value and even has a decreased demand.<\/p>\nGold<\/strong><\/h2>\n
Silver<\/strong><\/h2>\n
Platinum<\/strong><\/h2>\n
Palladium<\/strong><\/h2>\n
Safe Havens<\/strong><\/h2>\n
Portfolio Diversification<\/strong><\/h2>\n
Ways of doing such include:<\/h3>\n
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Methods Of Trading Precious Metals<\/strong><\/span><\/h2>\n
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