What are examples of precious metals

Precious metal

All precious metals are often advertised as so-called crisis-proof investments. But this is not entirely true. Precious metals are inflation-proof as raw materials and, due to their rare occurrence, are always valuable. That definitely makes them attractive in economically difficult periods. However, precious metals such as platinum and palladium, which are mainly used in production, can also lose value in times of crisis. Precious metals are often used as an admixture or to diversify security portfolios. Because the price developments on the precious metal markets are not directly related to the stock and bond markets. In this way, the risk-reward ratio of a portfolio can be optimized. However, investing in precious metals also has disadvantages, as it does not offer any interest or dividends. If investors want to make profits with precious metals, they have to hope for rising prices. Another disadvantage of gold in bars and coins is the cost of storage and transaction. If you want to buy precious metals, you must also expect more or less high dealer margins. In some countries there is also a sales tax. Because of this, the price of precious metals must first increase 5 to 10 percent before the cost of the purchase is covered. If an investor invests in precious metals via stocks, funds, certificates or derivatives, the general risks of these financial instruments must be taken into account.