In 2020, silver performed the best with a 48% increase compared to platinum, a 26% increase, and palladium, an 11% increase. Silver is expected to increase during 2021 due to its use in industrial and manufacturing settings, accredited mainly to the creation of Covid-19 vaccine and PV (photovoltaic cells used in solar panels) production.
Under the Biden administration, vaccines are making their way across the nation, and there’s the increased implementation of renewable energy. This allows for more production of PV and solar panels, making silver a high commodity. Global corporation Amazon is planning at least five solar projects across the globe, including China. Amazon wishes to use 100% renewable energy by 2030. This creation of solar and renewable energy will most likely increase silvers’ value. However, the Covid-19 pandemic slightly affected metal overall, with a decrease of 5% in the fourth quarter of 2020, leaving the year with its value under $2,000.
While silver seems to be on the up-and-up, you should consider other precious metal values and economic impacts before deciding which one is right for your portfolio.
Historically, it’s known that silver follows gold in the precious metals market, but once silver’s trends go upward, its impacts are significant.
With the growth of industrial production and manufacturing, silver is set to increase throughout 2021. Not only is silver taking center stage in the creation of renewable energy, but 5G technological advances will impact the value of silver as well. According to Precious Metals Commodity Management, the use of silver in technology is projected to increase significantly by 2030, with a predicted value of 23 million ounces. In 2020, mining also brought significant profits in both gold and silver.
While it seems silver is more valuable in terms of currency and industrial use, another major precious metal is creeping up, aiming to break over its four-year high: platinum. Projections for platinum are projected to increase in the 40%-50% range for early to mid-2021. With expectations of silver and platinum taking charge in 2021, it’s only a matter of months before we see the trends between these two competitors.
Over decades and centuries, gold remains consistent in the market for precious metals, only hitting low values a few times. Throughout history, the price of gold is steadily rising, making way for the most common precious metals investments. As the Covid-19 pandemic hit worldwide in 2020, the demand for gold decreased, but investments rose to 30%, gains not seen since 2009. However, other forms of currency rose since last year as well.
Cryptocurrency and gold are in competition. Increases in the use of cryptocurrencies – such as Bitcoin, which have taken the lead since 2020 – have added pressure to the value of gold and other commodities. While there are risks to using cryptocurrencies, their values are projected to grow, with JPMorgan predicting Bitcoin will increase to $150,000 in 2021. And with India, one of the largest consumers of gold, there was a downward trend for the demand for gold in the fourth quarter of 2020, which took a major hit on the gold market. The last time India’s sales were this low was in 2008.
The good news for gold is that governments don’t see cryptocurrencies as real money but rather as property. Therefore, gold is a more reliable source of funds than cryptocurrencies. Additionally, gold is on the rise with being valued at under $2,000 per ounce in 2020, and it is expected to rise to around $2,300 per ounce this year.
Advances in auto manufacturing for energy-efficient vehicles give platinum more attention. Electric cars use platinum as a catalyst for hydrogen fuel cells. Though platinum’s value decreased during the height of the pandemic in 2020 due to decreased automotive manufacturing, it’s projected to increase through 2021 with the expansion of vehicle manufacturing and production.
If more energy-efficient electric cars are built in 2021, platinum’s value could significantly rise. With the Biden administration rolling out emission-reducing policies, there could be growth within the platinum market by the end of 2021. And despite the hit platinum took from the pandemic, the overall trend was a 16.4% increase last year.
However, platinum is mainly used as an industrial metal for automotive manufacturing, with its major mines in South Africa and Russia. If you’re looking to increase your portfolio, platinum is a good option; for someone who is investing for the first time, it would be safer to invest in a metal that has an established history of growth.
Copper isn’t always seen as a precious metal or something to invest in, mainly due to how frequently it’s used and because it is less attractive compared to beautiful diamond or silver coins or bars. However, its uses vary from the medical field to manufacturing and industrial services. This sustainable metal gives the buyer an advantage since most people overlook it and comes with affordable prices for investors compared to other precious metals. Copper trades for $4.25 and is expected to rise during 2021.
Investing in precious metals at the right time can give your portfolio the boost you’ve been looking for. Although it can be tricky deciding on the best precious metal to invest in during 2021, there’s one in particular that shines more than the rest.
Platinum is the best choice to add to your portfolio this year. Although silver is also on the up-and-up in 2021, platinum will affect much more in the economy. The predicted manufacturing of electric and energy-conscience cars means platinum’s value could increase, with over 50 million electric vehicles projected to be sold by 2038. This can boost the value of platinum as it’s a major component of hydrogen fuel cells used to operate electric cars. With the ongoing green policies from the Biden administration, platinum will indeed have its place on the world stage.
Now that you’ve taken our advice on the best precious metal to invest in or have made a decision on your own, what’s the next step? You might be considering investing in precious metals. If you are, there are a few ways you can do this.
Just like most commodities in the world, you can invest your money in stock for precious metals. Stocks like Wheaton Precious Metals, Nucor, and Rio Tinto are available to buy and sell precious metals stock. Take a look at both industrial and precious metals for your stock investments to level out profits.
Coins are great to have not only for investments but as collector’s items. They’re fun to look at, simple to store and are easier to liquidate. People donate to museums, galleries, and other collectors, making it an enjoyable part of an investment.
Bars are typical to invest in and are financially smarter than coins. They’re worth more and weigh more than coins, which adds to their value. Gold bars start at one gram, while silver starts at one ounce. Though, the higher the weight, the more you’ll quickly add to your portfolio. If you’re able to, it’s always wiser to buy precious metals in bars rather than coins.
If you invest in physical precious metals instead of stock, be aware that you’ll need a safe and secure space to keep your coins or bars.
You shouldn’t have to rely on currency for your investments. The long-term advantages of having physical precious metals are worth more for years to come. At Oxford Gold Group, we want to help you get the best value for your investments.
Do you want to preserve your retirement savings? You can do it with ease when investing in platinum at Oxford Gold Group. We’ve helped thousands of people boost their retirement accounts over the years. Read our customer reviews to see how we can help.
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INSIDE THIS INVESTMENT GUIDE YOU WILL LEARN:
• How Gold & Silver can protect your savings & retirement accounts
• Types of Gold & Silver products available for Home Delivery
• How a Gold & Silver IRA can protect your Retirement account