Making Your Investments Shine: Should You Invest in Precious Metals?

Precious metals have long been seen as stores of value. VladKK/Shutterstock

So far in 2025, the spot price of gold has hit 16 record highs. And even though gold declined by more than 1 percent in mid-March, to around $3,015 an ounce, due to a strengthened U.S. dollar, experts still see gold shining in the future. This optimism is fueled by the Federal Reserve’s anticipation of at least two future rate cuts this year as well as ongoing geopolitical tensions, including renewed conflict in Gaza. But gold isn’t the only shiny metal you could add to your portfolio.

Gold is part of a wider asset class known as precious metals, which includes silver and platinum. Historically, precious metals have held strong as inflation hedges, and their low correlation to other asset classes such as stocks and bonds mean that even a sliver of your portfolio devoted to precious metals could reduce volatility and risk.

So let’s take a closer look at precious metals.

Why Invest in Gold?

For centuries, gold has been looked at as a store of value and a status symbol. Its main uses today include jewelry and a form of currency. And especially in times of economic uncertainty and global conflict, people have flocked to gold.

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Plus, it has also served as a strong inflation hedge, as gold tends to spike when the U.S. dollar weakens. But in recent decades, gold has held tough in various times of economic uncertainty.

In fact, during the recession from 1980 to 1982, the benchmark S&P 500 Index lost 27 percent, while gold increased by 46 percent, according to research by RJOFutures. And during the dot.com market crash from 2000 to 2002, gold rose by 12 percent and the S&P 500 plunged by 49 percent.

Why Invest in Silver

As with gold, a stronger U.S. dollar took a toll on silver, causing it to fall by more than 1 percent to around $33 per ounce in mid-March. However, silver continues to hover amid five-month highs due to tighter supply in light of uncertainty behind President Donald Trump’s tariff proposals.

But unlike gold, silver has a wider array of practical and industrial uses. Silver is widely used in electronics and superconductor applications. In fact, industrial applications account for around 55 percent of global silver demand, according to research by Sprott, a global asset manager focusing on precious metals.

And silver has also held its weight in times of economic turmoil. During the 1980 recession, the price of silver jumped to a record high of around $49.45 per ounce.

Why Invest in Platinum

Platinum futures are hovering over $1,000 an ounce amid expectations of Chinese stimulus.

Platinum is most widely used in the automotive industry to build catalytic converters, which prevent vehicle emissions from polluting the air. The metal’s second-largest application is in jewelry.

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However, prices could be threatened by lower electric vehicle sales and uncertainty over Trump’s tariffs.

Still, it remains one of the rarest precious metals in the world—scarcer than gold and silver. Platinum is primarily mined in South Africa and Russia. Its price tends to spike when these countries are in turmoil. Platinum could also see a boost as countries move to cleaner energy.

Why Invest in Palladium

Palladium futures are hovering around $950 per ounce, close to their one-month high of $972 seen on March 18. It remains one of the rarest metals on Earth. It’s 15 times rarer than platinum, according to Provident Metals, a metals dealer. And some analysts believe that palladium is slowly replacing platinum in the industrial sector due to its lower cost and similar uses. For instance, it’s also used widely in dentistry, electronics, and catalytic converters. Palladium is also used in fuel cells and solar energy applications. And as a jewelry application, it forms an alloy stronger than white gold when mixed with yellow gold.

How to Invest in Precious Metals

You can purchase physical metals in the form of bars and coins on the open market. But this would require you to take full responsibility of storing and protecting your precious metals. In addition, you could face hefty storage costs. And physical gold is highly illiquid, so it may be best for those who are determined to hold on to it for a long period of time.

You could also purchase stocks of companies that mine precious metals. But this could require a deep understanding of the precious metals markets.

It may be easier to purchase shares of exchange-traded funds (ETFs) and mutual funds that track the prices of precious metals. This would remove the hassle of storing and looking after the actual metals. You could easily sell shares like you would shares of a common stock through your brokerage account. And because these funds are professionally managed, it’ll eliminate the hassle of analyzing individual mining stocks. However, you should also pay attention to the performance of any precious metal ETF and mutual fund.

Here are some of the top precious metals funds:

• SPDR Gold Shares (GLD)
• iShares Gold Trust (IAU)
• iShares Silver Trust (SLV)
• Global X Silver Miners ETF (SIL)
• GraniteShares Platinum Trust (PLTM)
• abrdn Physical Platinum Shares ETF (PPLT)
• abrdn Physical Palladium Shares ETF (PALL)
• Sprott Physical Platinum & Palladium Tr (SPPP)

The Bottom Line

Precious metals have long been seen as stores of value. But they can also add layers of diversification, inflation hedging, and risk protection to your portfolio. And one of the easiest ways to invest in precious metals is through ETFs and mutual funds that track the metals markets.

The Epoch Times copyright © 2025. The views and opinions expressed are those of the authors. They are meant for general informational purposes only and should not be construed or interpreted as a recommendation or solicitation. The Epoch Times does not provide investment, tax, legal, financial planning, estate planning, or any other personal finance advice. The Epoch Times holds no liability for the accuracy or timeliness of the information provided.