Recent Trends That May Shape up Precious Metals Portfolios

Portfolio management

As markets evolve, investors realize the need to diversify their financial portfolios. Precious metals, with their expanding industrial applications, continue to serve as a safe investment. 

Holding them in their physical form is what reputed trading specialists like https://www.indigopreciousmetals.com/ advise you on. In 2019, the precious metal market size globally was valued at approximately USD 182.2 billion. 

Predicting a compound annual industry growth in terms of revenue, this market is expected to touch USD 362.2 billion by 2027. Despite the uncertainties of the pandemic, gold and silver assets remain your most prudent financial investments. 

Make a Smart Choice

If you are averse to taking risks as an investor, recession-proof avenues that keep you immune to market upheavals are your best bets. Adding silver, gold, platinum, or palladium to your precious metals portfolio allows you to hedge against inflation. 

Making a bullion investment from reputed sellers gives you access to secure vaulting facilities. Because they have intrinsic value and offer unique inflationary protection, assigning even a small section of your portfolio to precious metals lowers your risks.

Market Growth Factors

When you need liquidity the most, your investment in precious metals never fails to deliver. The listed recent trends are likely to influence your diversified portfolio prominently featuring precious metals positively:

Rising Demand in Industrial Applications

Popular metals, including gold, silver, palladium, and platinum, have wide industrial application usage, and this demand is growing. The latter two are specifically used as autocatalysts to lower vehicular pollutant emissions.

Whether it is renewable energy, transportation, automotive, chemical, water management, electronics, or glass industries, these precious metals play crucial catalyst roles. Moreover, backed by advancements in technology, these sectors continue to evolve and expand. 

Spurt in Jewelry Sector 

Gold and silver will likely remain the dominant metals catering to this segment. Jewelry made from gold has historical significance, especially in highly populated Asian regions where great marriages are a cultural norm. 

The wedding industry is primarily responsible for the year-round demand for beautifully crafted jewelry. These pieces, even when not actively worn, serve as a valuable long-term investment for most buyers. Because of sentimental value, traditional jewelry often gets passed down the generations.

Miscellaneous Influences

When you seek stability outside the equities market, these precious and rare metals with a track record of holding their value never fail to deliver. The recent positive movement in precious metal pricing can be attributed to the latest developments like:

  • Global supply chain disruptions
  • Instability in the equities market
  • Trade tensions between large economies like America and China
  • Unprecedentedly high levels of public debt necessitating safe stores of value
  • Political uncertainty and unrest visible in developed nations
  • Widespread manufacturing and distribution of Covid-19 vaccines
  • Expansionary monetary policies
  • Increase in central bank liquidity
  • Government stimulus
  • Near-zero federal rates

Increase in Government Funding

Major contributors to the precious metal market are going the extra mile to fulfill the demands of patrons like you. These companies are diverting funds to research and develop new products, discovering untapped reserves, and entering into joint ventures to mine precious commodities. 

While focusing on introducing new entrants, their feasibility is not ignored. Industry-standard tools are deployed to measure the viability of these new offerings. 

When it comes to expanding the precious metal market, the backing of government funds goes a long way. By embracing technological advancements and utilizing increased government funding, relevant entities are inching towards making newer discoveries.

Add investment-grade precious metals to your portfolio through a specialist trader who believes in supporting clients with thorough market research. Check their credentials and websites. To top it, access to secure vaults eases the storing of your prized investment without any risks. 

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