Question

In: Finance

Discuss whether you think precious metals are a good investment or not and why?

Discuss whether you think precious metals are a good investment or not and why?

Solutions

Expert Solution

Precious metals are gold, silver and  platinum are unique investments. Precious metals provides a good hedge against inflation. The precious metals can be used at the time the economy is in downturns. They have a strong future.

it helps in diversification in the portfolio. We can invest in the precious metals through an ETF instead of holding it directly or can even invests in the precious metals through a mutual fund, The prices of these metals is dependent upon the supply and demand. Although investing in precious metals comes with security, its prices can also drop during times of economic certainty.So,avoid  investing heavily in these metals as there are risk associated with the investment,

Price fluctuations /volatility is more in the silver industry than the gold market. Before investing in these metals we just have to be sure weather investing in these metals is consistent with our  investment goals or not.


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