In a world characterised by economic uncertainty and fluctuating markets, are you increasingly looking for stable and secure ways to protect your assets? In this context, precious metals such as gold, silver, platinum and palladium are becoming increasingly important as investments. Their unique properties make them attractive options for investors looking for long-term stability and value preservation.
Gold has been the undisputed favourite precious metal for thousands of years. However, palladium, which is now one of the most expensive metals in the world, is 30 times rarer. Silver was also one of the clear winners, particularly during the covid crisis, and has increased in value by almost 70% in the last five years.
An investment in precious metals such as silver, platinum and palladium can also make a lot of sense for investment newcomers and risk-averse investors. Here are some of the most important reasons:
Diversification of the portfolio: When you invest in different types of assets, you spread your risk, which is crucial for a successful investment portfolio. Precious metals offer an effective way of spreading risk and protecting yourself from the effects of market fluctuations. As the prices of precious metals often behave in the opposite way to traditional investments such as shares or ETFs, they are very well suited to reducing the fluctuations in your portfolio value in times of crisis. Analysts recommend investing around 5 to 15 % of your assets in precious metals.
Inflation protection and stability in uncertain times: Precious metals have historically served as a hedge against inflation. When inflation rises, precious metals often retain their value or increase in value as they have limited availability and, unlike paper money, have an intrinsic value, i.e. an intrinsic metal value that is determined by production and replacement costs. Investors traditionally regard precious metals as a "safe haven" in times of economic or political uncertainty.
Industrial demand: Silver, platinum and palladium have important industrial applications in areas such as electronics, the automotive industry, solar systems, jewellery production, medical technology and other high-tech sectors. Rising industrial demand can therefore influence precious metal prices in the future and bring opportunities for returns.
As an investor, you should bear in mind that precious metals are also subject to certain price fluctuations. You will also not receive short-term returns such as dividends or interest when investing in precious metals, as they are considered a long-term investment, so only invest capital that you will not need in liquid form in the near future and take your risk appetite and investment goals into account.