Many believe that gold is the best precious metal to invest in; however, several aspects consider that say otherwise. To begin with, gold is very expensive; the price of an ounce is around € 1,155; In addition, it must be taken into account that the demand for jewelry in China and India has fallen, and many analysts currently predict that the price of gold will fall in the near future.
Best precious metals to invest
Therefore, before committing to an investment in another, it is advisable to consider other price metals in the portfolio. Next, we will talk to you precisely about four precious metals that are a better option to invest instead of gold.
Silver, which is selling for $ 17.02, is mostly used for jewelry. Investing in silver could offer profit potential should demand in this sector increase. It is worth mentioning that the silver market was not experiencing its best moments during the first decade of the century. However, in recent years silver growth has stalled.
The price of silver peaked in April 2011 when an ounce of silver cost $ 48.64 but has been trading lower ever since. Silver investors face the challenge that all precious metal investors face: finding a way to take advantage of price changes in silver.
What is recommended is that before buying metal prices, it is essential to understand what will cause silver prices to move. Silver must be said, it is a challenge to understand, as it has characteristics of both precious and industrial metals. While the price of silver is less than 2% of the price of gold, it is also a fact that it is approximately 100 times more expensive than copper.
Despite these characteristics as a precious metal, silver also has many industrial uses. Its applications in the industry relate this metal to fluctuations in the global economic cycle. Consequently, will investing in silver be profitable in the future? Proponents of silver believe that the industrial uses of this metal will increase its price.
Suffice it to say that the United States president has a strong intention to expand the infrastructure of the American Union, which could see the plant experience greater demand. On the downside, as interest rates rise, it could also increase the cost of holding silver bullion.
Platinum is another of the best precious metal investments today. Like silver, platinum is also widely used in different industries.
Not long ago, specialists recommended investing in platinum due to a shortfall in supply and a near recent lows price. However, if electric cars reduce the demand for catalytic converters, the demand for platinum could decline, along with the price of your EFT. A platinum investment could round out portfolio diversification as precious metal stocks and mutual funds usually operate independently of the stock market.
Steel is an industrial metal that is used primarily in the construction of buildings. The price of steel is driven by supply and demand, as is the price of many precious metals.
China is one of the main steel-consuming countries globally, so steel prices are significantly affected by the use of this metal by this country. It must also be said that there are many steel companies in which you can invest. The largest of them in the world is ArcelorMittal, which has a market cap of 31.552 billion. For active investors, specialists suggest exchanging their gold stocks for steel as this metal tends to rise in price.
Finally, aluminum is one of the most abundant metals on earth and is available in various products thanks to its malleability and high capacity to resist corrosion. Aluminum can be found in the automotive industry, aerospace, power lines, kitchen items, etc.
There are versions found among specialists regarding aluminum prices; however, futures and options are routes to invest in aluminum. You can simply buy an exchange-traded note that tracks an index of futures contracts of aluminum. There are also shares related to this metal and an ETF that includes mining and aluminum production companies.