Precious Metals Investing for Retirement

Most investors entering into retirement gradually shift their portfolio from higher risk financial instruments to low risk holdings with more consistent returns. This is because market fluctuations in high-risk investments can be easily overcome during the decades leading up to retirement; however, during retirement a large market setback could have disastrous implications and place a retiree in a precarious financial situation. Accordingly, investors entering into retirement typically move their investments to stocks and secure commodities. One segment of the commodity market that is highly prized by retirees is precious metals, such as platinum and palladium. Precious metals investing can provide investors with solid returns on their capital while also mitigating risk levels to a suitable level for those entering retirement.

When most people think about platinum, they consider its usage in modern jewelry, especially wedding bands. Platinum resists corrosion and is therefore an ideal candidate for daily usage against the moisture and salts of the skin. However, these same properties and highly valued in other industries and provide great opportunities for platinum prices to continue their rise. Platinum’s primary industrial application is its use in the catalysts of gas burning engines. Additionally, it has seen success in fuel cells built for electric cars. The confluence of these two uses makes platinum one of the most prized metals for the automobile industry.

Best of all, those considering for retirement would be in a great position with holdings in platinum. This is because platinum is not only integral to current production in the automobile industry, but it is poised to play a key role in the anticipated switch to alternative energy uses of the future. This creates a stable investment that analysts project will grow consistently over the future and provide a secure return for retirement years. Additionally, Forbes has recently reported the price for platinum has surpassed gold for the first time since March of 2012, serving as another indicator that the precious metal is on the rise.

For retirees considering precious metals investing it is also recommended to augment a portfolio with palladium. Palladium is also used in the automobile industry, making it an attractive investment strategy in the same way as platinum. However, palladium offers increased applications in the electronics industry due to its superb electrical conductivity. Accordingly, due to the increased implementation of high-tech electrical components in industry applications and consumer electronics, analysts predict palladium has strong long-term growth potential. The Wall Street Journal reports that palladium has seen surpluses in the market in 2011 and 2012, however, that is soon to change. It is predicted that the demand for palladium will increase to a level above the current supply, driving prices for the precious metal up drastically.

Given the long-term growth prospects of the precious metals market, platinum and palladium remain a strong investment strategy for those who want a consistent return without extreme fluctuations in price point. This makes these metals perfect for those interested in planning their investment strategy for retirement.

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