Precious metals can be a good addition to an investment portfolio. Investing in metals such as gold, silver, and platinum can add stability to a diversified portfolio. Particularly in difficult economic times, investing in precious metals can be very attractive. Both gold and silver are demonstrating stable prices in the current markets. In relation to other assets, precious metals tend to hold their value in comparison to other types of assets. You might ask, “What is silver worth?” Well, at the moment the current live silver chart shows silver at $33.57 per ounce, the price of gold at $1733 per ounce, and platinum at $1601 an ounce. Gold and silver have been steadily increasing in value since 2001. Silver has been outperforming gold. In the time period between January 2009 and June 2012, gold went up almost 82% while silver prices soared 140%. Platinum, one of the rarest precious metals is currently selling lower than gold due to economic fluctuations but normally sells at twice the price of gold.
All of the metals are expected to increase in price per ounce according to industry analysts. The demand for all three of the main precious metals is increasing, with both platinum and gold being used in technology, in electronics and the automotive industry. The demand for silver on a worldwide basis is growing at a much faster rate than current supply.
Investing in precious metals
There are a variety of ways to invest in precious metals including numismatic coins, bullion coins, bullion, jewelry, certificates, stock in mining companies, and gold and metals futures and exchange traded funds. Coins can be purchased from all sorts of places including eBay, other online coin sites, auction houses, and even antique shops. Buyers of collectible coins will need to factor in a dealer markup and will need to make sure the coins are authenticated.
Bullion coins and bars
Bullion coins that are minted by governments around the world include the American Eagle coin, the Canadian Maple Leaf, South African Krugerrand, the British Sovereign, Mexican Gold 50 pesos, and the Vienna Philharmonic. Bullion bars are available from government mints and private companies such as the Wall Street Mint, Engelhard, Johnson Matthey, Sunshine Minting, Credit Suisse, and Produits Artistiques de Metaux Precieux. Certificates allow investors to invest in precious metals like gold, without having to worry about storing and transferring actual gold bullion. Precious metals are traded all over the world, and can be sold as exchange traded products including ETFs, CEFs, and ETNs, all traded just like shares on the stock exchanges.
Investors can also invest directly in mining companies such as the some of the world’s largest gold mines such as Barrick Gold, and Goldcorp of Canada, Newmont Mining in the United States, Newcrest Mining of Australia, AngloGold Ashanti of South Africa, Gold Fields of South Africa, and Polyus Gold of Russia. Platinum mines include Stillwater Mine in the United States and Impala Platinum, and Anglo American Platinum in South Africa. Top silver companies to invest in include Silver Wheaton Corporation, Endeavour Silver Corporation, Pan Silver Corporation, and Fresnillo PLC.