Precious metals are often considered a safe investment, but which is the best investment? Here we will look at gold, silver, and platinum to see how they compare.
Table of Contents
The Three Precious Metals
Gold, silver, and platinum are all valuable metals that can be used for investment. Each has advantages and disadvantages, so it’s important to understand their differences before deciding.
Gold
Gold is a chemical element with the symbol Au (from Latin: aurum) and atomic number 79, making it one of the higher atomic number elements that occur naturally. Its pure form is a bright, slightly reddish yellow, dense, soft, malleable, and ductile metal. A relatively rare element, gold is a precious metal that has been used for coinage, jewelry, and other arts throughout recorded history. In the past, a gold standard was often implemented as a monetary policy, but gold coins ceased minted as a circulating currency in the 1930s. A total of 197,576 tonnes of gold exists above ground as of 2019.
Silver
Silver is a shining white metal used for centuries in jewelry, coins, and other decorative items. Silver is also popular in electrical conductors and solar energy applications.
Sterling silver is an alloy of silver containing 92.5% by weight of silver and 7.5% by weight of other metals, usually copper. The sterling silver standard has a minimum millesimal fineness of 925.
Fine silver, for example, 99.9% pure silver, is relatively soft, so it is often combined with harder metals to create a more durable alloy. The alloy most often used for this purpose is sterling silver.
Platinum
Platinum is a white metal that is rare than gold. It is used in jewelry, lab equipment, electrical contacts, and catalytic converters. Platinum is non-reactive, does not tarnish, and is very hard. Because it is rare, platinum is also very expensive.
Which One Is The Best Investment?
Gold, silver, and platinum are the three main options for investing in precious metals. But which one is the best investment? It depends on several factors, including your investment goals and risk tolerance.
Gold
Gold, silver, and platinum are all excellent choices for investing. Each metal has its unique benefits and drawbacks.
Gold is the most popular precious metal for investors. It is abundant enough to create coins but rare enough so that it can only be produced selectively. Societies and economies have placed value on gold, thus perpetuating its worth. Gold doesn’t rust, providing a sustainable store of value, and humans are physically and emotionally drawn to it.
Silver is used in various industrial applications, so its price is driven partly by industrial demand. It is also used in jewelry, silverware, and coins. Like gold, silver doesn’t corrode and has been used as a store of value for centuries. Silver is more abundant than gold but still rare enough that it can only be produced selectively.
Platinum is the most abundant of the three metals but is still considered rare. Platinum is used in various industrial applications, including jewelry and coins. Because it doesn’t rust, platinum is also used as a catalyst in chemical reactions. Platinum’s price depends on industrial demand and supply and demand from investors.
Silver
Regarding Precious Metal investments, the three most popular choices are gold, silver, and platinum. But which one is the best investment?
It depends on several factors, including investment goals and objectives, risk tolerance, and current market conditions.
Here’s a quick look at each metal and some of the key considerations when making your decision:
Gold: Gold is often seen as a haven asset and is traditionally used as a hedge against inflation and economic turmoil. Gold has also been used as currency for centuries. The gold market is very liquid, so it’s easy to buy and sell gold at market prices. However, gold can be volatile, so it’s important to do your research before investing.
Silver is often touted for its industrial uses and is therefore considered more of a commodity than an investment metal. However, silver does have some investment applications and can be used as a hedge against inflation or economic recession. Silver is also less volatile than other precious metals like gold or platinum, making it a good choice for risk-averse investors.
Platinum: Platinum is a rarer metal than gold and silver and is primarily used in industrial applications. Platinum is more expensive than other precious metals but has a higher potential return. Platinum can be volatile, so like with any other investment, it’s important to do your research before buying platinum.
Platinum
Platinum is one of the rarest and most valuable metals in the world, with a density almost twice that of gold. It is also corrosion-resistant and has a very high melting point, making it ideal for jewelry, electronics, and chemical processing. Investment demand for platinum tends to be driven by industrial demand and concerns over the stability of other investment assets, such as stocks and real estate.
Conclusion
After researching, gold is a better investment than silver or platinum. Gold is more abundant than silver, but it is also more expensive. Platinum is less abundant than gold and silver but more expensive.
