If you’re looking to diversify your portfolio and hedge against inflation, you may want to consider investing in money market metals. These metals are less correlated to other markets and can help reduce risk while increasing your overall returns.
However, you need to be sure that you understand the risks of these types of investments before making them a part of your portfolio. Here are a few tips to keep in mind:
Gold
Gold is a precious metal that is used in a number of industrial applications. It is also commonly alloyed with silver, copper or platinum to increase its strength.
As a money market metal, gold is an ideal investment choice for those who are looking to grow their wealth and preserve their capital. The value of this metal fluctuates based on the demand and supply of other currencies and assets, so it is important to know how to buy and sell it efficiently.
Its high electrical conductivity and inertness make it useful for plating contacts, terminals, printed circuits and semiconductor systems. It is also a good reflector of electromagnetic radiation, such as infrared and visible light.
Gold is used in a variety of applications, including smelting, electroplating, and casting. It is also a popular material for jewelry and decorative items. It is also often alloyed with other metals to increase its strength and hardness, such as silver, copper or platinum.
Silver
Silver, or Ag (atomic number 47), is a chemical element that is valued for its electrical conductivity and its decorative beauty. It is located between copper and gold on the periodic table and is a white lustrous metal.
Its uses are diverse and include industrial applications such as electronics and photography, as well as jewelry and silverware. However, demand for silver has declined since the 1990s because of the development of newer technologies.
One way to invest in silver is through exchange-traded funds (ETFs). These allow you to bet on the future price of silver without having to hold physical silver bars or coins. Buying an ETF, like the iShares Silver Trust or the Aberdeen Standard Physical Silver Shares ETF, can be a great way to diversify your portfolio and avoid the risks of owning physical silver.
Platinum
Platinum is one of the rarest metals on earth. It is found only in small quantities, and it’s very difficult to mine.
It’s also the most expensive metal out of all precious metals, and its price fluctuates the most. This makes it a riskier investment than gold and silver, but it also presents investors with opportunities to earn a profit when prices go up.
Physical platinum can be bought in bars and coins, or it can be purchased in financial products like exchange-traded funds (ETFs). These are often backed by the metal or its derivatives.
Platinum is a valuable asset for investors because it’s used in everything from jewelry to anti-cancer drugs. And it can help diversify a portfolio.
Palladium
Palladium is one of the six platinum group metals (PGMs) along with gold, silver, rhodium, ruthenium and iridium. It is also one of the rarest metals, making it an excellent investment option if you’re looking to diversify your precious metals portfolio.
Its uses include catalytic converters for the automotive industry and hydrogen purification and storage. In addition, it is used in water filtration systems that remove chlorine, iron and other contaminants.
The price of palladium has jumped significantly in recent years and it has been pushed higher by a shortage of supply. Its production is largely limited to two countries, Russia and South Africa. Its supply is forecast to be below global demand for the eighth year in a row, which means prices are likely to stay high.
