Precious metals 101

They’re all precious — but not created equal. Understand the key differences that make each metal shine in its own way.

Gold is the classic precious metal — a go-to during times of uncertainty and a symbol of wealth for thousands of years. But beyond the glimmer, gold is mainly used as a store of value. Unlike platinum or silver, which have heavier industrial uses, gold is mostly held for investment — ETFs, bars, coins — and jewelry. Central banks also hold large gold reserves, reinforcing its role as a hedge against inflation, currency devaluations, and geopolitical stress.

Gold tends to rise when investors seek safety, but it isn’t risk-free. Prices can stay flat or even decline for long periods, and rising interest rates can make it less attractive compared to income-generating assets like bonds.

When could gold make sense?

• You're worried about inflation or market volatility
• You want to reduce reliance on traditional currencies
• You’re building a long-term, diversified portfolio
• You want a historically resilient store of value
• Gold doesn’t generate income — so it may not suit income-seeking investors on its own.

Silver is sometimes called “gold’s little sibling,” but that may not be giving it enough credit. Silver has a unique dual identity: part precious metal, part essential player for some industrial uses.

Roughly half of silver’s demand is industrial uses — including solar panels, electronics, and medical devices — the rest is jewelry, investment, and silverware. That split means silver’s price can be tugged in different directions by the economy.

Remember: Silver is more volatile than gold — in part because its market is smaller and more easily swayed by shifts in supply or demand. That can make it riskier but also more opportunistic for investors with a point of view.

When could silver make sense?

• You’re bullish on growth in industries that use silver, such as solar, electronics, or tech 
• You’re seeking more volatility — and opportunity — than gold
• You want precious metals exposure with a twist
• Silver doesn’t generate income — so it may not suit income-seeking investors on its own.

Silver often lags or leads gold in unpredictable ways — it’s not just a cheaper alternative. As a hybrid that’s part safe haven, part economic bellwether, it can shine under the right conditions — just know it may experience bigger price swings than you might expect.

Platinum is a lesser-known precious metal that’s often overlooked in favour of gold or silver — but it’s uniquely important in both industry and investing.

Unlike gold, platinum is heavily used in industrial applications — especially in catalytic converters for vehicles. It’s also found in medical devices, electronics, and emerging green technologies like hydrogen fuel cells. That means its price responds to both investor demand and changes in manufacturing or environmental policy.

Platinum is rare — even more so than gold — and mined primarily in South Africa and Russia. That makes its supply more vulnerable to geopolitical and labour disruptions, which can drive up volatility.

Because of its volatility and industrial exposure, platinum isn’t usually considered a core holding. Instead, it’s used for diversification or for a speculative tilt — a way to add a small dose of non-traditional exposure to a portfolio.

Remember: Platinum offers opportunity, but it also comes with complexity. If you’re drawn to the idea, start small, understand the supply/demand dynamics, and remember that it doesn’t behave like gold, but that’s kind of the point.

When could platinum make sense?

• You’re looking for diversification. Platinum doesn’t always move in sync with gold or stocks.
• You have a view on clean energy. Hydrogen fuel cells rely on platinum. 
• You’re already holding gold or silver. Platinum may offer complementary exposure, with a different risk-return profile.
• You want to hedge against supply shocks. Platinum is mined in just a few countries, which can make supply disruptions more impactful.
• Platinum doesn’t generate income — so it may not suit income-seeking investors on its own.

No matter which metal you choose — gold, silver, or platinum —the main ways to invest are surprisingly similar. Each method has its own advantages and trade-offs, so it’s worth understanding how they stack up.

Many investors start with ETFs for convenience. Bullion or coins are for those who want to own the real thing. Mining stocks can offer extra upside — but come with extra risks and sometimes mixed exposure.

Some ETFs are “basket” or multi-metal funds, offering exposure to more than one precious metal in a single fund — e.g., gold and silver together. Likewise, many mining companies — and royalty/streaming companies — produce or derive revenue from more than one metal, depending on what their mines yield.

Despite both being precious metals, platinum and gold often move for very different reasons.

Here’s why:

Platinum and palladium are close chemical cousins, often mined together in regions like South Africa and Russia. Both are prized for their rarity and essential role in automotive catalytic converters. Platinum is also popular in jewelry and industrial applications, while palladium is known for its efficiency in gasoline engines. Their prices can swing sharply based on shifts in supply, demand, and industrial trends — sometimes trading near parity — i.e. at the same price — other times diverging widely as market forces and technologies evolve.

Each precious metal brings its own strengths — and quirks — to the table.

• Gold is the classic safe haven and portfolio anchor, prized for stability but not built for rapid growth.
• Silver offers a blend of investment and industrial potential, with more volatility and opportunity for risk-takers.
• Platinum adds diversification and speculative appeal, but may demand a closer eye on market and supply dynamics.

No single metal is “best” for every investor or every season. Consider your goals, risk tolerance, and the role you want metals to play in your portfolio. When it comes to precious metals, sometimes the real value is in the mix.