Gold, Silver or Platinum: Which Precious Metal Will Perform Better in 2016?

Choosing where to invest your money is one of the most important decisions any of us can make. If you make the wrong choice, you will be putting your financial future at risk. Many people choose to invest in precious metals, but which one is the best one to invest in this year? They will all perform differently, so it’s time to find out which option is the best bet for investors.

Gold

With global stock markets stuttering like never before, it’s not surprising that many people are turning to gold this year. It has been seen as a safe haven for invest for a long time. But does that necessarily mean that it will perform well this year? In recent weeks, the price of gold has been falling. And this is seen as a great opportunity for people who are looking to buy the metal. Prices of gold have not been lower for quite a long time, and that means that now is the time to jump onboard. Once the price starts to soar again later in the year, as it’s expected to do, the buying opportunities won’t be as good.

It is thought that once we get towards the end of April, gold prices will start to bounce and hit an upward trend again. That’s great news for people who already have their money in gold from existing investments. But, for many people, it will also represent a missed opportunity. All the forecasts are telling us that gold will start to pick up as summer approaches. Gold tends to move up in value when the stock markets are going down. And with turbulence in China and Europe, the stock markets are looking very risky right now. So, it makes sense to consider investing gold bullion or gold coins. It’s a risk, but it’s one that many people who know what they’re talking about are recommending it.

Silver

If gold is not for you right now, then you might want to join the many people heading towards silver. Prices are going to rise between 2016 and 2020. This means that we are at the very start of an upward cycle. For the last year or so, people have been buying silver in high quantities. The good thing about silver is that it has plenty of practical uses. This is not something that you can say about gold so much. Silver is used in things like computers, batteries, solar panels and mobile phones. So, there will always be a demand for it because those things are manufactured heavily right now. Engineers today are demanding silver more than ever before, and that is positive for investors.

There is also a risk that there could be a shortage of silver in the years ahead. This can lead to prices rising because buyers are desperate to get their hands on the diminishing amount of silver. When this supply deficit widens, this helps investors who want see those prices rise. When you look at all the factors that are having an impact, it’s certainly looking like it will be a very good year for silver investors. Many people think that, by the end of the year, silver will have done better than gold. Silver always performs better than gold at times when metal prices are rising, and that’s what is expected to happen this year.

Platinum

The falls that platinum experienced in 2015 has turned it into a very attractive proposition for investors this year. The range it’s in right now is the lowest for nearly seven years. When prices are this low, people will usually take advantage of it and buy before the prices start to rise again. This makes sense; it’s one of the basic rules of investing. But things are not exactly playing out as expected right now. A lot of investors are sitting around and waiting for platinum prices to start rising again. As things stand though, historical trends are not repeating themselves in the way that investors would expect them to. Small rises in the price are not uncommon, but it can hardly be called a recovery.

At the moment, the forecasts for platinum prices in 2016 are not looking great. Some forecasts are suggesting that the picture will look a little brighter by the end of this year. But you shouldn’t expect too much from the price. It is not about to rocket through the roof. Investors in platinum are going to have to be patient as they wait for things to turn around. If you’re looking for quick returns, this is not going to be good news for you. But for people are taking a slightly more long-term strategy, this might not be seen as too much of a problem at all. After all, nobody expects the price to stay so weak forever. In the next couple of years, things will pick up.

Conclusions

Silver and gold have always been seen as the safest bets in terms of precious metals. And, for a long time, people thought there was not too much difference between the two of them. Although they will probably both perform well over the course of this year, silver is looking stronger. Because of the drop in production and the increase of overall demand, prices are set to climb. This is music to the ears of silver investors. Gold is likely to do well, but probably not quite as well as silver this year.

Platinum is proving slightly more volatile. Not many people are as confident about the immediate future of platinum as they were just last summer. But things remain difficult to predict. Most people are assuming that the growth in platinum prices will be slow and steady. That’s not necessarily a bad thing, but it might not be able to offer the same rewards that might be delivered by silver later in the year. It’s important to weigh up your own priorities before deciding which of these three options is the best one for you right now.

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Elizabeth Goldman is the editor of AlternativeInvestmentCoach.com. She has written for Investing.com, Bullbearings.com and many others.