Investing in precious metals is a smart choice for those who want to protect themselves from economic uncertainty. However, you will want to make sure that your precious metals portfolio is properly diversified to lower volatility and ensure more smooth returns. The executives at Allegiance Gold have been studying and researching to make sure that any you make may grow your portfolio. Here’s a look at five ways to diversify a precious metal portfolio.
Gold may be the most popular investment in any precious metal portfolio. That’s because gold has been considered a store of wealth for over 5,000 that protects purchasing power. You can add gold to your portfolio using physical gold coins and gold bullion. You may also purchase a gold ETF or exchange-traded fund. Gold may be a core investment in just about any precious metal portfolio.
Silver has been the second more popular choice when it comes to precious metal investing. With silver, you may get more volatility because this precious metal also has industrial use. You can add silver to your portfolio by purchasing physical silver coins or silver bullion. You can also buy bags of “junk silver” which are US coins with silver content. Finally, you can purchase a silver ETF.
Platinum is one of the most recent entries in the precious metal world. In fact, Platinum was not designated a precious metal until the 18th century. Today platinum is commonly used in wedding rings and has applications in the automotive and medical industries. Platinum is available as physical coins and bullion. You can also purchase a platinum ETF. Typically, platinum tends to be the highest-priced precious metal due to unpredictable supply levels and consistent demand.
Palladium is part of the platinum family and the newest entry in the precious metal investing world. The appeal of palladium is that it’s an extreme rarity. In fact, palladium is 15 times rarer than platinum and 30 times more rare than gold. Palladium is in high demand for catalytic converters and remains in short supply. Because of this, palladium is expected to experience a rise in price. Palladium can be added to a precious metal portfolio with physical coins and bullion.
5). Precious metal mining companies
You can purchase shares in precious metal mining companies. These precious mining companies can be considered leveraged plays on a precious metal because of a mining companies ability to extract minerals at a cheap price. As precious metal prices go higher, mining companies can experience outsized returns. However, it should be noted that precious metal mining companies can fall harder than precious metals in bear markers.
As you can see, there are a number of ways that you can diversify your precious metal portfolio. Be sure to carefully study each of these precious metal investing options before making a financial investment decision. With the right type of precious metals diversification, you can have a portfolio that delivers smooth and steady returns. To learn more about precious metals and a precious metals portfolio, make sure to contact an executive at Allegiance Gold today. Make sure to ask about our FREE 2021 Gold IRA Guide!