Rhodium and gold are two popular precious metals to invest in.
Both are sought after by aspiring investors, and many who diversify their metal portfolios have money in both.
That said, if you’re looking at the investment space and only have the funds for one, you’ll want the best choice. Thanks to this guide, you can make it.
We’re going to break down the pros and cons so you can decide to buy gold or rhodium for your investment portfolio. Let’s get started.
Compared to gold, rhodium is one of the more recently discovered precious metals. Found in 1803, it’s much rarer than most of its contemporaries.
The metal is used to make LCD screens and other glass types and make jewellery scratch-resistant. The asset is also used significantly in the automotive industry. Because of these applications, rhodium will always have some use. But does that make it a good investment?
Interestingly, the metal is only found as a byproduct of platinum, contributing to its rarity. It’s because of that rarity that its value is often relatively high. Yet, since there’s such a demand for it in the automotive industry, the rarity means it can’t always be met. Because of this, if you’re looking to buy rhodium, know that it can be volatile.
Volatility is good for investors looking to profit in the short term, as they can easily buy low and sell high if they pay attention. For more risk-averse investors, they might want to stick with a different choice.
Gold is much more common than rhodium and has been around since ancient human history began. It’s used for many things when it comes to conduction and how easily it can be forged into different items. Many others out there buy gold jewellery for their loved ones.
Because the metal is so prevalent, it’s generally used as a hedge against economic inflation. If the dollar is losing value, people tend to invest in gold and vice versa. It’s also used worldwide as an investment method.
That said, though much of the world utilizes gold, it’s still not an unlimited asset. The price of gold is decided by supply and demand, much like rhodium and other precious metals. However, it’s worth noting that gold is generally a stable asset. It’s not often used for a short-term investment, considering its significant volatility.
Instead, investors use gold as a hedge for the economy and long-term growth. Don’t go into gold expecting quick profits because it simply won’t happen. Remember, if you’re new to investing, gold might be the better option as it’s less risky.
Investment Methods for Gold and Rhodium
Whether you’re deciding on gold or rhodium, know that there are various ways to invest in either one. Here’s a breakdown.
Both metals come in the form of physical bullion. However, while bullion is great if you want to hold your investment, it’s not great for storage reasons. You’ll have to have a vault to store the bars or pay a third party to do so.
You can also get either metal in coin form, making it easier to store and provides you with an easier way to store them. Coins can simply be stored inside a desk or elsewhere in the home.
While this isn’t directly investing in either metal, you can buy stock in a rhodium or gold mining company. In doing so, you can potentially earn if the price of one metal goes up without dealing with the issues of metal investment.
That said, mining stock isn’t perfect. Sometimes a mine might strike even if the asset’s price is doing well. Consider this while choosing an investment avenue.