Metals Gold

Precious metals like silver, gold, and palladium have a high value and are of use in many industries. Naturally occurring rare metals are needed to produce electronics, jewelry, and even critical auto parts. While businesses continue to invest in these commodities, individual investors have increasingly tapped into their potential for earning profit and invest in them in order to diversify their portfolio.

The most popularly traded precious metals

Trading symbol XAU

Gold

Gold has some use in manufacturing, but it is most frequently in demand among traders and jewelry producers. Gold is less dependent on industry, however, because it is also acquired as money and wealth.

Banking

Central banks can affect prices by hoarding or selling gold reserves, as well as their decisions on money supply policies.

Mining

Taking gold from the ground is a costly and time-consuming challenge which places more value on the precious metal.

U.S Dollar

With the U.S. dollar viewed as the world’s reserve currency, a weakening dollar typically benefits the value of gold.

Trading symbol XAG

Silver

Silver had been mined for more than 5,000 years. Like gold, it too is acquired as a form of money and wealth. Silver has many uses, including jewelry, medicine, energy, technology, and electronic components.

Global Economy

With numerous industries needing silver to produce products, as the global economy grows, the need and demand for silver will also increase.

Technological Advances

Industries dependent on silver to make various products may change as technology evolves to replace silver as an industrial component.

Consumer Needs

As the increase of electronics and appliances grows in developing countries, the demand for these products creates an increased need for silver.

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Trading symbol XAG

Palladium

As an extremely rare element, palladium has multiple uses in the fashion, electronics, dental, and automobile industries. Unlike gold and silver which have traded for thousands of years, palladium wasn’t discovered until 1803. Economic factors affecting its value include:

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Substitutes

Rhodium can also be used to make catalytic converters which means the demand varies based on the supply of other metals.

Location

South Africa and Russia supply a combined 75% of the markets palladium, which makes regional conflicts a risk to mining efforts.

Auto Needs

With car makers relying on palladium to produce catalytic converters, demand for vehicles has a direct correlation with the price of palladium.

Trading symbol XPT

Platinum.

Platinum is rarer and more costly than gold because it costs more to extract from the earth than gold. Platinum, too, has various uses by industries such as auto and jewelry.

Global Reach

The demand for platinum occurs throughout the world with Europe, Japan, China, and North America the biggest users of the metal.

Industrial Demand

Various business sectors including the automotive industry heavily rely on platinum to make catalytic converters
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Rarity

With only 200 million ounces of platinum residing above ground, while gold has 5 billion ounces, the rarity of platinum makes it in high demand.

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