Precious metals are metals that command a high price in the financial markets and are often favored for their preciousness, scarcity, and special uses in areas such as industry, investment, and jewelry. Common precious metals include:
1. Gold (Gold): Gold is one of the most well-known and widely invested precious metals. It is used as a safe-haven asset and is also widely used in the jewelry, industrial and electronics industries.
2. Silver: Silver is another common precious metal, and is often viewed by investors as a hedge asset along with gold. Silver is also used in a wide range of industrial applications, including electronic devices and solar panels.
3. Platinum (Platinum): Platinum is used in industry to make catalytic converters for automobiles, in the chemical industry, and in medical devices. It is also an important material for jewelry and is considered a high-end precious metal.
4. Palladium (Palladium): Palladium is similar to platinum and is mainly used in the manufacture of catalytic converters for automobiles, but also in the electronics industry and jewelry.
These precious metals are often used by investors to diversify their portfolios, as they typically exhibit relative stability in times of market volatility and economic uncertainty. Investors can participate in the precious metals market by purchasing physical precious metals, bullion ETFs (exchange-traded funds), and precious metals futures. However, it is important to note that the precious metals market also involves risk, and therefore thorough research and risk assessment should be conducted before investing.