Precious Metals
Rare, naturally occurring metallic elements with high economic value used as stores of value and in industry.
What is Precious Metals?
Precious metals are rare metallic elements with high economic value derived from their scarcity, durability, and unique physical properties. The four primary investment-grade precious metals are gold, silver, platinum, and palladium. Gold serves primarily as a monetary asset and store of value; silver has both monetary and industrial uses; platinum and palladium are primarily industrial metals used in catalytic converters and other applications. Investors access precious metals through physical bullion, ETFs (such as GLD for gold, SLV for silver), mining company stocks, and futures contracts. Precious metals often perform well during periods of inflation, currency debasement, and geopolitical uncertainty.
Example
During 2020–2022, both gold and silver outperformed during periods of heightened inflation fears. Gold reached an all-time high of approximately $2,075/oz in August 2020. Silver, with its significant industrial demand (solar panels, electronics), reached a 10-year high above $29/oz. Platinum and palladium spiked sharply due to automotive industry supply disruptions affecting catalytic converter production.