These 3 precious metal investments make sense right now, experts say (2024)

FAQs

These 3 precious metal investments make sense right now, experts say? ›

The bottom line

Gold has shown great strength and prowess in maintaining the top, most sought-after metal by investors. However, investing in gold isn't for beginners. Gold remains the best option to invest in, but it's limited in pricing per ounce.

For many investors, including myself, silver is the more affordable alternative to gold. While not as firmly as it is with gold, silver is still considered a safe haven asset — making it a very viable investment in the long run.

Warren Buffett has been vocal that he feels gold lacks value because it lacks usefulness. A key principle of value investing, as Buffett practices it, says you should only invest in things that serve some practical purpose. Silver has myriad uses, and Buffett has invested nearly $1 billion in it.

Gold: Generally has a higher price per ounce compared to silver and platinum. Silver: Typically has a lower price per ounce compared to gold, making it more accessible for smaller investors. Platinum: Historically, it has often been priced higher than gold, but it can experience greater price volatility.

Many experts believe that silver is undervalued at under US$30 compared to fellow currency metal gold. As discussed, their production and price ratios are currently incredibly disparate.

Of the two metals, platinum is stronger than palladium, but again both metals are strong enough to be used for engagement rings or wedding rings that are worn daily.

What is the most expensive precious metal in the world? Gold, platinum, silver, palladium, and rhodium are the world's five most expensive precious metals. Rhodium is the most expensive, trading at around $12,000 per ounce.

However, in comparison to gold, silver is more abundant on Earth, which means it doesn't have as much upside potential as an investment. Silver remains an attractive investment option in 2024, mainly as a hedge against inflation and other economic uncertainties.

What metal will last 1,000 years? ›

Gold is clearly the most durable, but many objects fashioned from silver, copper, bronze, iron, lead, and tin have survived for several thousand years.

Past performance is not a reliable indicator of future results. Due to its reputation for being a safe-haven asset, gold tends to perform well during a recession.

Inflation: Some investors buy gold as a hedge against inflation, but there is no guarantee that the price of gold will increase along with inflation. Political upheaval: Gold prices can be affected by political events, such as wars, national elections, and changes in government policies.

Generally, investors tend to focus on gold, silver and platinum because they are more liquid, meaning they are easier to buy and to sell, and therefore less risky than lesser-known precious metals.

For Buffett, value relates back to usefulness, and without a specific use gold has neither. Interestingly, the same thought process does not apply to silver — Buffett has put money into silver before, and believes its dual nature as both a precious and an industrial metal make it useful and therefore valuable.

"Looking at past cycles of gold and silver prices, silver tends to rally after gold and by a greater percentage," says Patrick Yip, director of business development at American Precious Metals Exchange. "We saw this occur both in 1980 and 2011. If history repeats, silver may rise sharply later this year.

Gold is traditionally seen as a safe investment, maintaining its value well over time and offering a stable hedge against inflation and economic uncertainty. It's the go-to choice for investors looking for a reliable store of value.

Gold and platinum definitely count as contenders for the number one spot. Silver may be more useful industrially, but it is somewhat less rare, so less precious. Rhodium, iridium and ruthenium are perhaps the rarest, roughly 1/5 as common as platinum.