Investing is a huge topic to tackle.
First, think about timing. When’s the best time to start investing?
Next is the question of capital. How much should you put aside to invest?
Consider the different types of investments. Should I invest in stocks, real estate, or cryptocurrency? This list goes on.
Always consider the question of price volatility. The economy impacts investment returns.
This above risk speaks to the benefits of precious metals since economic conditions impact them differently. Thus, you’re left with a final question. What’s the difference between platinum vs. gold investment portfolios?
Here are a few more points to consider.
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Understand Liquidity When Buying Gold and Platinum
Have you heard of the term “liquid” in investing?
The most recognizable liquid asset is the cash you withdraw from an ATM. Your savings and checking accounts are also considered liquid assets.
A liquid asset is any investment that can be quickly converted into cash.
The key word is “quickly.”
While you can sell a home, you can’t sell it overnight for hard cash. Thus, a real estate investment is not considered a liquid asset. Look at liquidity as a scale, ranging from the most to least liquid.
The same scale applies to precious metals.
Investing in gold may be a better answer if liquidity is your primary concern. The gold market is more established and, thus, more trusted than the platinum market. Gold is bought and sold more quickly than platinum metals.
Look at the trade volume in the precious metals market. Metals sold at higher quantities more frequently have more liquidity.
Investing In Platinum May Come With More Risk
Remember the point about price volatility?
It comes down to market shares. Platinum holds a smaller share of the global precious metals market. Gold has the highest market share.
However, there have been times when platinum fetched a higher price than gold. That’s the best time to sell your platinum investments. Precious metals can be volatile in the short term, but they’re more stable in the long term.
Having both metals in your portfolio isn’t a bad idea. Start by browsing sources like the U.S. Gold Bureau to understand prices, strategy, and investing terms.
Consider Applications When Investing In Precious Metals
Think about the various applications for platinum vs. gold investment metals. They’re found in watches, jewelry, car converters, engineering parts, and more.
This point may change your mind about platinum since it’s the primary metal used in making car converters. Thus, it’s a good investment when demand is high. High demand drives the price of platinum.
However, gold has fetched a higher price than platinum since 2011. The above points reflect why it’s so important to track the applications of these precious metals, as well.
Platinum vs. Gold Investment Planning
This post is an excellent starter guide for your precious metals investing strategy. Dig more into the pros and cons of starting a platinum vs. gold investment portfolio. You can always talk to an expert about your next steps.
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