However, gold, platinum and silver are not the only metals that can generate good dividends for investors. Amid the battle to limit carbon emissions, copper, nickel and cobalt are booming, which are used to store energy from renewable sources. Silver is very close to gold in terms of its popularity as an investment in precious metals. Silver has the enormous advantage of being relatively cheap compared to gold, which makes it easier to start with a small amount of money and create a portfolio from scratch by making small investments periodically over time.
The widespread use of silver for industrial purposes, even in the rapidly growing solar energy sector, also contributes to the price of the metal. Despite its advantages, the lower price of silver compared to other precious metals can present a storage challenge. Since an ounce of gold, platinum or palladium is worth many times more than an ounce of silver, the storage space required for any sum of value in silver will be much greater than that required for other precious metals. Palladium is a precious metal highly valued by investors.
It is highly resistant to corrosion and has an attractive silver-white appearance. Palladium is a relatively soft metal and is particularly rare, significantly rarer and more expensive than silver or gold. There are several different options, but the three main reserves of precious metals are round, bar and coin. The metal is extracted through a series of chemical processes that separate it from other metals in the platinum group such as platinum, palladium and osmium.
Of course, these metals will not only be used for low-carbon technologies, but for everything from smartphones to weapons. In addition, due to the rarity of gold and silver, these metals maintain a significant value that often grows during times of economic uncertainty. This low-carbon future would entail strong demand for a wide range of base and precious metals, according to the World Bank report. There is concern about the prices of metals needed for low-carbon technology, as the price of cobalt, lithium and even copper has increased in recent years, as shown in the following graph (note that date intervals vary on each of these graphs due to data availability).
To assess the possibility of a shortage, it is useful to analyze the availability estimates provided by the United States Geological Society (USGS) for more than 100 minerals and metals, including many of the key metals for low-carbon technologies. If you are not interested in having ingots and coins made of high-value metals in your home or safe, you have the option of investing in precious metals without physically owning a single coin. As a result of the relationship between precious metals and the global economy, when economic conditions are positive and markets are bullish, it is best to keep precious metal stocks to a minimum. Therefore, by investing in mining companies that produce the precious metals you are interested in, you gain indirect exposure to the precious metals market.
As a final note, it's worth keeping in mind that, while gold, silver, platinum and palladium are undoubtedly the most prominent precious metals, there are other precious metals. Often referred to as ingots, in the case of some precious metals, these coins and ingots are available at market prices on several websites or at the local pawn shop or coin shop. . From investing in stocks and mutual funds to buying an exchange-traded fund and physically buying precious metal coins, there are many ways to participate in this sector.
Investing in precious metals has some advantages over investing in stocks, such as being a hedge against inflation, having an intrinsic value, having no credit risk, a high level of liquidity, providing diversity to a portfolio and facilitating purchases. What further complicates matters is the fact that precious metal ingots come in several different forms. .