Are precious metals still the best investment

Rare, sought-after, easy to store, recyclable and transportable - these properties apply not only to gold, but also to many other precious metals. Silver, platinum and palladium are the most common investments. Alongside gold, silver in particular is a "safe haven" in times of crisis. But like gold, other precious metals are objects of speculation: their value can rise or remain constant, but they can also fall.

In addition to the uncertain future on the raw materials market, there is always the currency risk. If the dollar prices for precious metals rise, but the dollar rate falls in the same way, then the profits are gone. Unlike gold, 19 percent VAT has to be paid on the precious metals presented here. Exceptions apply to foreign silver coins, where only the difference between the purchase and sale price is taxed. Last but not least, you should be aware of the high trading margins for bars and coins.

Silver, gold's little brother

Silver is similar to gold in many ways: It has always been considered a valuable asset and store of value. Until the late 19th century, silver competed with gold for greater importance in terms of currency function. Even silver can only be mined at last. The main silver producing countries are Mexico, Peru and China. According to expert estimates, the deposits currently found are expected to be able to meet demand - for example from the electrical industry and jewelry production - for another 10 to 20 years. While other deposits can be found, it usually becomes more and more difficult to mine.

So there are two reasons to invest here too. On the one hand, the investor can protect himself against financial crises with silver, on the other hand he can bet on a rising silver price due to the scarcity. The latter is measured per troy ounce (approx. 31.1 grams). You can watch the course on finance portals such as Onvista, for example. An ounce of silver costs only a fraction of an ounce of gold. This means that if you invested the same amount in gold and silver, you would need more space for your silver. You can get silver almost everywhere where you can also buy gold. The selection of coins and bars is usually smaller, however.

Silver supply and demand

Silver is more for experienced investors. Because the price fluctuates much more than the gold price. That means: the chances of winning are greater, but so is the risk of loss. The most important reason for this is the much smaller market. Since many investors want to use silver to hedge against possible inflation, inflation expectations influence the price. If the fear of monetary devaluation increases, so does the demand and thus the price. Also in response to the global banking and financial crisis from 2007 onwards, the price of silver rose rapidly. Since silver is used much more than gold in industry, crises in certain industries can lower the price. If the electrical, photo and chemical industries in particular invest less, demand falls and silver also loses value.

Platinum - not pretty, but rare

Platinum is the most valuable precious metal in the world. It's rarer and heavier than gold. While around 2,500 tons of gold and about 20,000 tons of silver are extracted in the mines each year, it is only 200 tons of platinum. These are mainly mined in South Africa. The high price is not only due to the rarity. The production of pure platinum requires a complicated and lengthy refining process. Due to its inconspicuous, grayish color, platinum has a much lower status than gold in cultural history.

As with silver and gold, the following applies: Since platinum has a high intrinsic value, it is suitable as a physical investment and reserve for times of crisis. Even so, most investors have chosen gold in the past. This can be interpreted as a catch-up potential for platinum. It is suitable for spreading risk. However, not every retailer offers platinum. Even with larger precious metal suppliers such as Pro Aurum, many denominations and coins are only available at irregular intervals. You can find a larger selection at ESG Edelmetall-Handel, for example. The range of physical products is generally smaller than that of gold and silver, and coins are only minted sporadically. Its enormous rarity and the need in industry also predestine platinum as an object of speculation. You can follow the current course here, for example.

Supply and demand for platinum

The area of ‚Äč‚Äčapplication for platinum is wide. The precious metal is used, among other things, in the chemical and electronics industries. In jewelry production, for example, platinum is used for watches. But only in catalyst technology is platinum better suited than all other metals. With this technology, exhaust emissions are reduced in the automotive industry, especially with diesel engines. The development of the automobile market and the continued use of diesel vehicles are therefore decisive for future platinum demand. It must also be borne in mind that platinum used for catalytic converters can largely be recycled and is therefore not lost.