Today, the global economy and the stock markets are still suffering due to the pandemic. The situation reminds financial crisis in 2008. Then the investors lost more than 50% of their shares. Now, they worry about their investments even more.
Undoubtedly, activities to combat COVID-19 are designed to improve our life. However, the economy is still in crisis and will take time to recover.
The precious metals market rose significantly after 2008. Therefore, returning to it now is a reasonable decision. In 2021, this market segment may be even more successful. Let’s see which precious metals are best invested in 2021.
If you are looking for a reliable source of stability concerning the current currency value, investing in gold is the best solution. For many centuries it was of great value to people: jewelry, coins, statuettes, Olympic medals were made from it.
In 1900, the USA passed a law that legally secured gold as the sole benchmark of value in the payment system. Called the Gold Standard, the law lasted only until 1971, after which the difference in value between metal and banknotes increased exponentially.
Gold is the most important element of the global financial system and is used in many technical areas because doesn’t corrode. Given this, it is the most popular precious metal. Experienced investors see it as an opportunity to withstand the economic crisis and protect their savings.
Silver is valued for its aesthetics too. However, due to properties, applications, and rarity, it has a different price. This precious metal is mined from copper or gold as a by-product. Therefore, when the mines of these metals are closed, the supply of silver fluctuates significantly. Due to this, with high demand, silver prices may rise soon.
Today, this precious metal remains undervalued, so it has a lot of potentials. You can even open a silver IRA, for example, for a retirement account.
Platinum is inferior to the aforementioned precious metals. Although coins and bars are minted from it, there are still fewer of them than from silver and gold. Due to its high corrosion resistance and durability, platinum is used in many industrial areas, including watchmaking, electronics, and auto.
The price of platinum declined when the auto industry replaced it with palladium due to its lower price. Today the price of platinum is very low, which makes it a reliable investment.
This metal is very similar in metallic properties to platinum. Back in 2008, automakers replaced platinum with palladium due to its lower price (for autocatalysts production). More than 85% of palladium is now used in the automotive industry. So, if you are considering investing in this niche, palladium would be a good choice.
It’s worth mentioning that since a huge amount of palladium is produced in South Africa and Russia, its price has risen to $ 2,500 per ounce due to supply disruptions starting in 2020. Thence, palladium is more expensive than gold these days.
Story by Brian Jarvis. He is a digital marketer with more than 10 years of experience. Brian is a contributor to Content Marketing Institute and regularly quoted as an expert in large media outlets.