Precious Metals IRA: The Difference Between the Prices of Gold, Silver and Platinum

Written By Alla Levin
August 21, 2021
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Precious Metals IRA: The Difference Between the Prices of Gold, Silver, and Platinum

Two of the most valuable precious metals that have been often considered for investment, purposes throughout time, have been Silver and Gold. These valuable metals make for a savvy investment portfolio to date. However, some advisors say you should rather go for Gold, while others vouch for Silver or Platinum.

There are many routes to purchasing any one of these and if you’re just getting started, learning about each one and how they work is a good way to get off on the right footing. In this article we look at all three, so you can decide which one is the best option for you.

SilverPrecious Metals IRA

The difference between silver and gold is that the former’s price tends to swing between its purpose as an industrial metal and its role as a storage of value. This leads to price fluctuations within the markets, making silver more volatile than its counterpart, gold.  Although it may seem like it is not as popular as other metals, Silver does have some impressive properties and is widely used throughout all industries.

That silverware you have on your dining table may be made from pure or part silver. However, it would be labeled as “sterling silver”. It is also included in electronic items such as batteries and foil. Did you know silver has antimicrobial properties? That’s right, it has been known to be woven into various items of clothing to help prevent the build-up of bacteria that comes from deposits of body oils and sweat. This link has more on that.

As a commodity to be traded, it is similar to Gold in that it can be hoarded, but the difference is it does get affected by the supply and demand factor. Historically, when industries demand it more, it has a strong influence on the price. This is due to various innovations such as the photography industry where the silver-based film started increasing in demand and as such its price did too.

Emerging market economies also affect the price of this metal, and as the demand started to grow within medical sectors, electrical appliances, and other industrial uses like superconductors and that necessitate the use of Silver, it became a highly desired asset. Hence, in conclusion, the price of this specific item is affected by its applications.

GoldPrecious Metals IRA

Perhaps the oldest known precious metal in history has been Gold. Appearing in its natural form in nature, this precious metal has been dated back to almost 5000 years, as per written records, it was in smaller quantities back then and has increased in its mining so much so that it is now available in every corner of Jewellery store and gold mint in the world. Learn more about the historical significance of gold here: https://www.metaltek.com/blog/the-golden-age-the-history-of-gold/

This is why it is known as the “grandfather” of them all and is a durable and unique asset to have, not just because of its worth increasing over time but also because, unlike paper, this is one metal that does not spoil or corrode over time.

It is malleable and has the capability of being an electricity and heat conductor. Its uses are tremendous, from electronics to the dentistry industry and of course it is easily used to create an assortment of decadent Jewellery. Now it has been added to the list as a form of currency and investment throughout the world, as well.

When considering the markets, the value of gold is determined over 24 hours, through the week, for 7 days. It is one commodity whose price is not affected by supply and demand. This is because the supply far outweighs that of demand as there is such a vast amount of it.

However, when vendors and sellers decide to sell it, the price drops, and when they want to buy it, a new batch is quickly bought and the prices will increase. There has been an increase in desire for investors to hoard this metal, some of which include:

Inflation: When inflation hits an ROI or Return of Investment gets affected with a negative in the stock markets with other assets such as bonds, stocks, and real estate, gold has always maintained its value.

Political Crisis and War: Politics, Crisis thereof, upheaval, and war have been known to destroy many people’s homes including their savings and from lessons learned by many in such situations, it has almost always sent people towards buying gold.

This is because you can lose your money but when you keep gold locked up, your entire lifetimes’ savings can be moved to another country or location and sold for cash, or traded for things such as shelter, food, and safe passage to less threatening regions.

Financial Concerns: During tough economic times, when money and banking institutions are considered unstable, gold has been proved to be the most stable and effective means of storing something of value.

Precious Metals IRA: Platinum

Similar to silver and gold, another metal that is traded across the globe is Platinum. It is worth a higher price per ounce especially because of its rarity during political and markets instability. During the year, a lot less is produced in comparison to any other. It is considered the most volatile of all metals and investors should consider this when adding it to their portfolios.

All in all, it seems that gold has been the top contender in most people’s IRA accounts, and as per online resources it is a lucrative precious metals resource to add to anyone’s long-term investment, especially when you are considering the outlook and long-term plans for your retirement.

Many companies can help you to invest in this or any other types of precious alloys and opening an IRA for either Gold, Silver or Platinum involves some careful consideration of various aspects such as their overall rating, minimum investment amount, pricing, and rankings. Once you have checked these out, you can get a better idea of which physical asset to put your money into.

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