Top 4 Ways to Invest in Metals

Since ancient times, most people have been saving metals for the purpose of selling them in the future so that they can obtain a higher profit. There was a belief that the best type of saving was saving metals, especially precious ones, such as:

Gold and silver, but with the progress we are witnessing and the emergence of many different types of metals, there are now many ways to invest in different metals other than gold and silver, such as copper, platinum, palladium, and many other diverse metals that investors are encouraged to invest in.

It is worth noting that your balance in this investment is fixed and not affected by any external forces such as the prices of the markets in which the securities are traded.

What is investing in precious metals?

Investing in minerals is a profitable venture, and among the minerals that represent good investments are:

1. Investing in silver

Silver is one of the second most popular metals among investors. It has also been used as a currency for a long time, making it no less important than gold. The greatest proof of this is that the British pound was given its name because it was equal to a full pound of silver.

The price of silver is also greatly affected by the same factors that affect the price of gold. Although there are some differences between them, they are minor and almost negligible. Their prices are not close to each other, as there is a huge difference in prices between them.

However, what distinguishes silver most is that it is more stable than gold, and therefore does not experience as much fluctuation as gold. With the variety of ways to invest in metals, the best way to invest in silver is to trade on the stock exchange by tracking the movement of silver bullion.

2. Investing in platinum

Platinum prices are significantly affected by increased industrial demand and mining. Prices for this metal are also very high because the countries from which it is extracted are not as numerous as those from which gold is extracted.

It also experiences greater fluctuations than gold, and global uncertainty about metals has a major impact on its prices. You can also invest in it through the stock exchange.

3. Investing in copper

Investing in metals, especially copper, is one of the easiest ways, as you can invest in it directly and indirectly.

Directly, by purchasing it as bullion or coins and storing them until their prices rise. You can also purchase it after a specific expiration date and resell it.
Indirectly, by purchasing shares in copper-producing companies, and there are many of these companies. You can also trade in it through the stock exchange and other various investments.

It's worth noting that the price of copper is contingent upon supply and demand, and is primarily dependent upon the stability of the global economy, given that China possesses the largest possible reserves of this distinctive metal. Copper is also affected by oil prices, and the relationship between the two is directly proportional.

4. Investing in palladium

It is very similar to platinum, which is one of the most important metals used in the manufacture of electronics and transformers. If you want to invest in this metal, you can buy it directly and resell it again.

You can also trade it in the form of contracts for differences. One of the most important factors affecting the price of this metal is supply and demand. It is used in the manufacture of catalytic converters in gasoline-powered cars, and as demand for them increases, the price of the metal rises.

Which is better, investing in gold or stocks?

There are many reasons why investing in gold is one of the best investments that everyone is encouraged to invest in, and these reasons are:

Everyone believes that it is their safe haven and the best way to save money because it is the most stable metal in times of instability.
It has no relation to market downturns and fluctuations, as it is never affected by social instability, inflation rates, or wars.
Gold is treated as a currency and not considered a commodity by many because it was originally used for speculation.
Gold is a universal metal that possesses durability, strength, and is easy to shape and carry, making it acceptable for all people and their transactions.

Investing in gold for beginners

There are many ways to invest in different metals, which many people invest in due to the financial stability they enjoy. We will mention the most important metals and how to invest in them, such as gold.

From the end of the eighteenth century to the beginning of the twentieth century, there was little interest in this precious metal, due to the increase in economic growth.

It was also quite stable and hence there was a rise in stocks which was the reason why the price per gram was stable between $300-500 USD during this period of time.

But after the financial crisis of 2008, the price of gold rose to $1,907, and to this day, gold prices are constantly rising, and many people continue to invest in it.

Gold has been involved in financial markets since the beginning because it helped support banknotes. A gold reserve equal to that of banknotes was necessary to provide adequate support.

There are various ways to invest in metals, especially gold. The investment process is done by trading it as bullion. If you invest in it in any other way, you could lose a percentage of the price, which is the equivalent of the manufacturing cost. Therefore, we will explain below the benefits of investing in this precious metal.

The most important factors affecting the price of gold

As we mentioned, gold is not affected by any external factors in society and cannot be compared to any other materials or metals. It is only affected by the system of supply and demand for industrialists. The most important factors that affect its price are the following:

Central Bank Reserves: With so many ways to invest in metals, the bank reserves a percentage of gold for diversification purposes. This reserve can also be used in emergencies such as currency interventions. The central bank also pays close attention to the country's economic conditions, because diversifying its reserves can lead to a rise in the price of gold.
Risk aversion: Because there is a set of emotions that control the markets, especially the stock market, and these emotions play a very important role in the price of gold, and if the risk increases, investors prefer to sell their shares to convert them into gold, which is more stable at this time.
Central bank interest rates: Because the central bank sets interest rates at a low level, investment methods for metals typically yield low returns. Higher interest rates lead to a decrease in gold investment.
US Dollar Dynamics: Because gold is priced in US dollars, there is an inverse correlation between them, as they move in opposite directions. If an investor sells the dollar in the markets, he will find a greater investment in gold, thus increasing its cost. Conversely, if the dollar strengthens, gold prices will decrease. However, it should be noted that this does not apply to all cases, but it is applied in cases of economic crises and other uncertain situations.
Inflation: When prices skyrocket, consumers look for ways to invest in metals, especially gold, as they are reliable assets. Conversely, if the economy is growing and stable, this helps lower the price of gold.
Gold-producing countries: There are sanctions imposed on these countries, and they are also experiencing political instability. All of this contributes to an increase in gold prices. Furthermore, there are no contracts or documents specifying the level of gold production for investors.