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Interest in buying bullion has escalated rapidly over the past few years. Of course, such an endeavor frequently leads to the purchase of gold. Everyone loves the yellow metal, but are there other precious metals better than gold for investing? This question has a complex answer.
The fact is that it’s difficult to quantify “better than.” After all, silver is better than gold at being affordable, but many view gold as better than silver at storing value. Because investors and collectors often have different goals, this guide will cover several aspects to consider.
At Silver Gold Bull, we strive to ensure each of our clients makes informed investment decisions. So, are some precious metals better than gold? That’s certainly the case in some respects, but understanding the big picture is the only way to ensure you become a smart investor.
What Makes Gold Such a Popular Investment?
Before delving into the potential superiority of other precious metals, it’s important to discuss why gold is the literal gold standard of precious metals. When people discuss silver, platinum and other options, it’s always somehow in relation to their connection with the yellow metal.
Just consider some of the biggest headlines in recent years:
- “Here’s Why The Price Of Palladium Just Zoomed Past Gold” – Forbes
- “Why Silver Prices Lag Behind Copper’s Gains, but Outperform Gold” – MarketWatch
- “Why Palladium Is More Precious Than Gold or Platinum” – CNBC
- “Here’s Why Platinum May Now Be a Better Bet Than Gold” – CNN
Any of these articles might argue that there are precious metals better than gold. So, why does the yellow metal remain at the top of investment and collector conversations? Because it has a proven track record and staying power.
If you look at the price of gold over the decades, you simply cannot ignore its performance. Like any other investment, it has periods of growth and retraction. When you consider an investment of $2,850 in 2000 was worth 18,590 by the end of 2020, though, there’s an obvious trend at play.
It’s a simple fact that gold keeps up with the economy. There may be some precious metals that are better in some respects, but for storing value, gold remains the king of the hill. Of course, this doesn’t mean your other options can’t be equally valuable.
Precious Metals Better Than Gold in Price
Anyone looking to invest in affordable precious metals should buy silver bullion bars or coins. Out of the four primary precious metals — gold, silver, platinum and palladium — silver is easily the most affordable. Even if you’re looking for the best performer in price, though, gold still isn’t up top.
That’s because by the end of 2018, palladium surpassed gold in value. This was a long time coming — with the silvery-white metal breaking $1,000 only once before 2017. And with the metal rising from $500 in 2016 to $2,877 in 2021, those who invested in palladium saw big profits.
Of course, palladium isn’t the only precious metal better than gold in price. Rhodium almost hit $30,000 per ounce near the beginning of 2021. Unfortunately, most people can’t afford to invest in this form of bullion. Still, as Forbes points out, even platinum surpassed gold at one point:
“Over the 34 months to August 2011, [platinum] rose 150%, recovering faster at first even than the gold price. More notably, it slipped below the gold price itself, something seen for only three trading days in December 2008… You have to go back to the recession of 1991… to find platinum trading cheaper than the gold price.”
If you’re looking for precious metals better than gold in the high-price arena, remember that things can change. While platinum once outpaced the yellow metal, it hasn’t done so for a while. And though palladium surpassed all other primary precious metals by 2019, that could change too.
Precious Metals With Better Returns Than Gold
Imagine you buy $5 worth of silver and $5,000 worth of gold. Now, imagine that one month has passed. Envision your silver item now being worth $10 and the gold item worth $5,500. While the $500 gold profit might seem better, the fact is that silver had a much better rate of return.
In fact, putting that $5,000 investment in silver instead of gold would have resulted in a profit of $5,000 rather than $500. This is just an example of a better return on investment, but in reality, there are frequently precious metals that perform better than gold in this area.
In fact, UBS Global Wealth Management had a prediction at the beginning of 2021:
“UBS Global Wealth Management strategists don’t see gold repeating its stellar performance in 2021. Instead, the firm sees other metals — including silver and platinum — outperforming gold during the year ahead. As the economy improves in 2021, industrial demand will support silver and platinum group metal prices.”
This was a big prediction, but its accuracy means very little in the grand scheme. That’s because we’ve already seen some precious metals do better than gold in returns. In fact, the fictitious silver example we discussed earlier isn’t too far from reality.
At the beginning of 2021, silver was showing superior returns over gold. This meant the same investment in the white metal would’ve led to a much higher profit. And while this won’t always be the case, it shows that gold isn’t at the top of the mountain in every situation.
No one can predict which precious metal will perform better with 100% accuracy. There’s also no way to tell when this success may suddenly cease. The best thing you can do is stay up-to-date on the performance of each. Visit our Precious Metals Blog for resources that will help.
Are Any Precious Metals Better Than Gold in the Long Run?
Many people who invest in precious metals aren’t looking for a quick buck. Their strategy is to accrue bullion and use it to hedge against poor economies or as a long-term investment strategy. So, the big question is whether any precious metals hold up to gold in this area.
To put it simply: no one really knows. Many experts were surprised when the yellow metal took back its top spot from platinum. Others never expected palladium to become worth so much more than gold. When making a long-term plan, you should know about all your options.
Gold as a Long-Term Investment
With long-term performance, there really are no precious metals better than gold. Even though it has periods during which the price drops, its natural trend is profit. People have always seen it as a store of value, and it’s likely to remain that way forever.
Silver as a Long-Term Investment
Investing in silver has several nuances. The most important is that the metal’s price is more volatile than that of gold. This means you can make big profits quickly, but slumps in price are also more frequent. Still, recent news indicates silver may be good over the long haul.
Experts feel that there’s pent-up demand for silver jewelry and consumer electronics. This occurrence is concurrent with drying up silver supplies around the world. Even a small investment in this precious metal may prove extremely profitable in the future.
Is Palladium the Precious Metal Better Than Gold?
When palladium overtook gold in 2018, it didn’t drive up investor interest as much as you’d expect. The biggest consumer of the metal is the auto industry. That’s because palladium is a crucial component of catalytic converters. This car part reduces harmful gases put into the atmosphere.
As demand for environmentally friendly cars continues to increase, it’s likely that palladium’s price will rise. This could make the silvery-white metal a better bet than gold for long-term performance. There’s a major caveat to this, however, and it involves platinum.
Could Platinum Perform Better Long-Term?
Few people realize it, but platinum was once in the position of palladium. The metal was previously the chief component in catalytic converters. When its price rose to a certain level, though, it was more economical for car manufacturers to switch to palladium.
Currently, we’re seeing the opposite take place. We’ve seen that there are precious metals better than gold in many respects, but platinum has the most potential right now. If automakers switch back from palladium, the demand for its alternative will go through the roof.
And when considering the long-term demand for vehicles with less pollution, there’s no telling how long platinum may enjoy an upward trend.
Are Any Precious Metals Better Than Gold? That’s up to You!
If you take anything away from this guide, it should be that there are no perfect answers. Gold certainly stands out among its contemporaries in various ways, but there’s no denying that other precious metals excel in some areas. It’s up to you to decide what’s most important.
Of course, any of these issues could change in the future. We’ve seen this happen before when platinum went from king of the mountain to the metaphorical bronze medal in price among the four primary precious metals. By becoming an informed investor, though, you can prepare for these changes.
At Silver Gold Bull, we strive to offer products that meet everyone’s investment needs. Whether you’re aiming for top prices, long-term stability or quick returns, we’ve got something that will work with your strategy. Visit our Precious Metal Products page today to see our full selection.