Conceptual image with stacks of silver and gold coins next to a graph showing a sharply declining stock market.
You can invest in almost anything. When COVID-19 wreaked havoc on the economy, though, a whole new generation encountered market realities. They learned that purchasing bullion could hedge against inflation, and they started wondering about the best precious metals to invest in.
It’s a simple fact that precious metals offer a safe haven during economic troubles. As paper money loses its value, different bullion types typically maintain their value. In fact, you’ll often find that precious metal prices rise when the value of money is on the decline.
At Silver Gold Bull, we pride ourselves on offering one of the largest selections in the industry. If you’re interested in the best precious metals to invest in, you’ll find most of them on our website. And once you’ve finished this guide, you’ll have a better idea of where to put your money.
It’s not accurate to say one precious metal is older than another. Each of them came to earth billions of years ago due to supernovae explosions. There are massive differences in time, however, between when humans discovered and began using these metals.
Since humans first found and started using gold and silver thousands of years ago, they certainly stand out among other types of bullion you can buy. And fortunately for lovers of these bullion types, they’re also two of the best precious metals to invest in right now.
If you’re considering buying gold bars or similar types of bullion, you’re in good company. Countless people throughout history have invested in the yellow metal. Even when compared to other precious metals, gold is widely considered the best hedge against economic downturns.
The biggest consideration with any investment, though, is whether investors experience a good return. Considering a $275 investment in 2000 had a value of more than $2,000 by August 2020, it’s hard to argue that the yellow metal doesn’t offer a stellar return.
The folks over at Investopedia explained it fairly simply:
“Although the price of gold can be volatile in the short term, it has always maintained its value over the long term. Through the years, it has served as a hedge against inflation and the erosion of major currencies…”
When you begin your journey investing in gold, the first part of that quote is imperative to remember. There are going to be price fluctuations. At times, it may seem like you’re losing your investment. There’s still a reason, however, that people have always seen gold as one of the best precious metals to invest in.
That reason is gold’s ability to continue trending up. Short-term fluctuations are going to happen. What you need to look at is the metal’s long-term performance and historic ability to store value. Once you see this, it’s easy to understand why many people consider gold to be king.
While many view its yellow counterpart at the best hedge against inflation, there’s a reason people call silver “poor man’s gold.” Silver has historically kept track with gold, and people widely use it as a hedge against poor economies.
Of course, the price is what stands out to many people. When gold topped $2,000 per ounce in August 2020, silver maxed out at under $30. If you’re building a financial future on a budget, silver is easily one of the best precious metals to invest in.
It’s important not to let the low price of buying silver coins and other bullion types fool you. While its price may be incredibly low relative to gold, its rate of return has recently topped that of the yellow metal. And with investing, it’s all about the return.
While they arrived on earth billions of years ago, platinum and palladium are fairly new to humans. The discovery of platinum occurred in 1735. Palladium didn’t come on our radar until 1803 — interestingly inside of platinum ore.
Along with gold and silver, experts often refer to platinum and palladium as the “primary precious metals.” They’re also two of the best bullion investments you can make right now.
Anyone looking for the best precious metals to invest in has noticed palladium. That’s because the metal surpassed the price of gold around the end of 2018. Even when the yellow metal jumped to just over $2,000 per ounce in August 2020, palladium traded at more than $2,150.
By May 4, 2021, palladium had climbed to nearly $3,000 per ounce. Several factors caused this, but the primary driver is the automobile industry. Palladium is currently the primary component in catalytic converters — an auto part that decreases the amount of pollution vehicles put out.
As environmental regulations increase, so too has the need for catalytic converters. Platinum could replace the metal as the primary component — especially since it once was the primary component — but a shift in the auto industry would have to occur first.
We’ll discuss how this shift could happen below. If you’re excited about buying palladium coins, though, it easily remains one of the best precious metals to invest in.
If you’ve ever considered buying platinum coins or bullion bars, now might just be the time to do so. Even though the metal once easily outperformed gold — both in price and rate of return — you could buy an ounce at half the price of gold when the yellow metal hit $2,000 in 2020.
Because of its many uses and ability to store value, platinum is easily one of the best precious metals to invest in. Of course, the fact that it has a history of outperforming gold also doesn’t reflect badly on it. The major potential for return with platinum, though, involves its replacing of palladium.
Palladium has long been the “go-to” material for catalytic converters, but experts expect that this could change:
“Platinum can substitute for palladium in petrol engines, but this substitution only tends to kick in when the palladium price is double that of platinum. In other words, if palladium is $1,500 an ounce, and platinum $750, we’ll start to see substitution.”
With the price of palladium skyrocketing in recent years, it has no doubt been one of the best precious metals to invest in. Such a high price, however, can make automakers look for alternatives. And if we take our quoted expert at his word, this shift should already be in process.
Palladium hit a high of $2,992 on May 4, 2021. On the same day, platinum had an impressive performance that took it to $1,236. Palladium has traded at more than double platinum’s price for some time now. This makes the catalytic converter switch seem far more likely.
You may have never heard rhodium mentioned in a conversation of the best precious metals to invest in. There’s a good reason behind this: most people never invest in it. This is largely due to its price. For instance, an ounce of bullion cost nearly $30,000 in April 2021.
Even though it dropped to about $25,000 per ounce by the end of May that year, the fact remains that the price sat under $3,000 just two years earlier. While this may be one of the best precious metals to invest in, its cost unfortunately puts it out of most folks’ reach.
The value of precious metals can change throughout the years. And when you look at the performance of platinum and palladium compared to gold, it’s obvious that one type of bullion can easily overtake another.
When choosing the best precious metals to invest in, though, realize that these specific changes are relatively small. Much larger shifts have occurred throughout history. One such example? We once viewed aluminum as a precious metal more valuable than gold and silver.
The difficulty of refining aluminum in the past made it extremely pricey. Thanks to advanced technologies, a similar shift is unlikely in the short term. Still, the history of aluminum as a precious metal tells us we should prepare for the chance of significant changes.
This list mentions about half of all precious metals. And while some have no doubt performed better than others, each has its own benefits. It really comes down to your investment goals and your own comfort levels. There’s money to be made with each of these metals.
At Silver Gold Bull, our goal is to create a world of informed investors. The more informed you are when you make an investment decision, the better chance you’ll have of succeeding. And when you succeed in this area, we can benefit from you reinvesting your profits.
It’s a win-win for everyone! If you need more guidance on the best precious metals to invest in, we’ve created a great resource you can utilize for free. Visit our Precious Metals Blog today for all the information you need to make smart investments in bullion.
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