What are precious metals

Precious metals are rare metals with high economic and cultural value. Because of their durability, rarity and properties, they have been used for centuries in industries, jewellery, coins and as investments. The best-known precious metals are gold, silver and platinum, but palladium, rhodium and iridium are also among them. 
At The Silver Mountain, we offer a wide selection of precious metals, allowing you to invest in physical assets with lasting value.

Properties of precious metals that make them unique

Precious metals are distinguished by their special properties. They are corrosion-resistant and do not readily enter into a chemical reaction, which makes them very durable. These properties make precious metals ideal for applications in electronics and industrial sectors such as automotive catalysts. Moreover, precious metals are valued for their beauty, which is why they are often used in jewellery and fine art.
These unique properties mean that precious metals often retain their value even during economic instability. Due to their rarity, most precious metals remain valuable. This not only makes precious metals important for various industries, but also makes them a popular investment.

Factors affecting the price of precious metals

The price of precious metals is influenced by several factors:
Supply and demand: Scarcity of a particular precious metal can drive up the price. This happens for example with platinum and palladium, which are often used in the automotive industry.
Economic instability: Precious metals such as gold are often seen as a safe haven during economic uncertainty, which increases demand and can drive up the price.
Inflation and currency changes: When inflation rises, investors often resort to precious metals to protect their assets.
Political factors: Political tensions and trade restrictions can also affect the price of precious metals as these conditions can affect demand.
Gold is the most stable in trade, while the price of silver fluctuates more quickly due to industrial demand. Platinum and palladium are also more subject to fluctuations, as their price is strongly influenced by demand in specific sectors, such as the automotive industry, where these precious metals are incorporated in engines.

Investing in precious metals: gold, silver, platinum and palladium

For investors, the most familiar precious metals are gold, silver, platinum and palladium. These metals each offer their own advantages and risks, and their prices are influenced by different market factors.
Gold is popular worldwide for its stability and is considered a safe haven in times of crisis.
Silver is seen as both an investment object and an industrial commodity. Due to its industrial applications, silver can provide higher returns, but its price also fluctuates more quickly.
Platinum and palladium are important in industry, especially for automotive catalysts. Their value increases due to increasing demand in the automotive industry and due to their rarity.
When putting together an investment portfolio, a percentage of 5% to 20% is often recommended for investing in precious metals. This helps to spread risk, which is essential for a balanced portfolio.

Precious metals in your investment portfolio

Precious metals can play an important role in a diversified investment portfolio. They provide a form of protection against inflation, currency risk and economic instability.
Investment advisors often recommend increasing the share of precious metals in your portfolio during economic and political uncertainty, because gold and silver have no counterparty risk: the owner holds the precious metal directly and there is no financial institution involved in the transfer.
At The Silver Mountain, you buy physical precious metals, such as gold, silver, platinum and palladium, at current prices for gold or silver, for example. We also guarantee a buy-back service, so you can invest in precious metals with confidence.
Precious metals such as gold, silver and platinum are durable metals that are corrosion-resistant and often retain a high value. They are used in jewellery, in industry and as an investment, with each precious metal offering unique properties. By investing in precious metals, you protect your assets against the effects of inflation and market fluctuations. The Silver Mountain offers you the opportunity to buy and sell physical precious metals. When selling, you are assured of a fair price.
 
Disclaimer: The Silver Mountain does not provide investment advice and this article is for information purposes only. Past investment results are no guarantee of future results.