Silver, gold and platinum, have been long since recognized as some of the most valuable precious metals in the world. As part of some of the most sought-after commodities, people have bought them, sold them, used them to make their items and used them in trade.
Any savvy investor should by now be aware of the value of these and may have already included it in their portfolio. In terms of the one that is the best or better than the others, there may be one that tops them all, and this is gold.
However, for your educational purposes, we will discuss all three of these precious metals, and how their value is affected, so you can decide which one you would like to invest in.
The Value of Gold
Perhaps the oldest and ‘wisest’ of them all has to be gold. It has been around for as long as time itself, and as from certain online sources such as this.
As of the year 2020, there is approximately over 201, 290 tons of this precious metal above the ground throughout the world, 50% of which has been produced into jewelry, 40% has been invested and the remaining 10% is used in various types of industries for machinery and tools.
There is a good reason as to why this has been the most widely used out of the three and some of the reasons include its durability and the characteristics that include it being rustproof and also hard to corrode. Its use in various industries is primarily due to its ability to conduct both electricity and heat and many electronics and dentistry applications are made from it.
When on the markets, its value is calculated throughout the day, and over seven days a week. It is not the price is affected by supply or demand, this is because the size of the above-mentioned amount presents above ground, far more than overcompensated the demand for it.
Essentially, when people feel like selling it, they do, and this usually happens when the price drops or vice versa, their selling of it drops the price. And much like most investments, when people start buying it, the price goes higher.
Other factors also affect its price, for instance, any political instability, or inflation and global financial concerns throughout the world, all play a part in the value of this age-old precious metal.
The Value of Silver
In comparison to gold, the value of silver changes between its role as an industrial asset and as a stored commodity. Because of these two reasons and others, discussed below, the price of this metal, in particular, is highly volatile. With this option, supply and demand do play a part in its value as well as its price fluctuation.
Once upon a time, it played a vital role in the photography industry as a form of Silver Bromide: https://www.chemicalbook.com/Article/How-Is-Silver-Bromide-Used-in-Photography-.htm which is s a photographic film created with a base of silver metal. This stopped once the digital camera was invented. However, its uses are still dominant within other industries for example microcircuit markets, electronic appliances, electrical connections, conductors, batteries and inputs for instance. It is a desired commodity still, in many sectors and widely used across the world.
The value when invested is not necessarily affected by the demand for all its above-mentioned uses, nevertheless, the price is affected when the demand for it within certain industries goes up as opposed to people buying it to store it.
The Value of Platinum
Global commodity markets also trade one more precious metal – platinum. In comparison to gold, its price is much higher per ‘troy’ ounce and this fluctuates during certain periods and is affected by political instability or markets volatility with other investment types. This is one of the least extracted metals from the ground. Suffice to say it is not widely available.
Its value, as well as its price, is determined by the demand for it, albeit, the primary industry that uses it is within the motor industries as an automotive catalyst. The beneficial characteristic it holds is in reducing harmful emissions from vehicles and is also used in many jewelry and computer industries as well.
It is safe to say then, the demand for automotive vehicles determines the price and value of the metal. Many refineries and petroleum sectors use it too, and the same logic is applied here. Once production numbers increase, so does the price and this is et to become even more demanding as the ‘clean air’ legislation put into place recently, has authorized many automobile manufacturers to include catalytic converters as a less expensive and more viable option.
Having said that, in some countries this precious metal is being replaced by another one – palladium, and when this happens Platinum will not be around for too long. This may be a great reason to add it to a diversified retirement hub portfolio while you’re still considering what to buy. Not only will it become a rarity in many areas of the world but the price will tend to lean towards a state of volatility if not careful. The best thing to do is to keep a lookout for the demand in the above industries.
Now that you have a brief idea of the matters that determine the price and value of these three, perhaps you have a better idea of where you want to put your money.