Precious Metals Investing vs. Stock Market Investing

Investing can be adventurous and worthwhile. It is a gateway to a possible better financial future, but it can be confusing knowing what options you have. In terms of investing, many people take their money to the stock market. Stock market investing is a popular choice, but there is an investment alternative. Precious Metals have been a popular investment choice for investors around the world for hundreds of years. The fluidity of metal values and their supply around the world helps solidify investor confidence. It is nevertheless important to understand the differences between stock market investing vs. Precious Metals investing so you can be better informed of the decisions at hand. 

The Stock Market vs. Precious Metals Market

There are important differences for an investor to understand in order to make a sound purchasing decision. Here are a few areas where the Precious Metals market differs from the stock market:

  • Equities vs. commodities. Stocks found on the stock market are equities. In other words, stockholders own a small, or large, portion of the company the stocks are in. On the other hand, Precious Metals are commodities. This ensures the investor holds a physical metal product. Investors in Precious Metals make money when the demand for the metal increases and the spot prices go up. 
  • Both markets are not tied to each other. Both are wholly separate entities that do not affect one another in terms of performance or value. Investors cannot trade physical Precious Metals because they are not found on the stock markets. Historically, Precious Metals markets move in the opposite direction as the stock market, giving investors a viable option in case the stock market is weak. 
  • Variety differs because there are flexible options. In the world of Precious Metals, there are several options from which to choose. Where it differs from stocks is there are four primary Precious Metals to invest in: Gold, Silver, Platinum and Palladium. Even among the different Precious Metals, there are secondary market metals that can act as a buffer in case the Gold price, Silver price or Platinum price dips below performance standards. These secondary market products tend to carry lower premiums, and thus carry less risk, than new metals items. There are no secondary stocks in which to invest. The variety of Precious Metals helps your valuable money in a product that has historically rebounded quickly. 
  • Precious Metals are not tied into a company or entity. By extension, there has long been a history of investing in Precious Metals, even before the stock market existed. Performance in Precious Metals is based solely on social factors, political factors and the supply and demand of the metals, not on how the company or entity performs as a whole.

There are advantages to both, but Precious Metals have been an investment avenue for hundreds of years. The intrinsic value of the metals market is something to behold because there is no other physical or non-physical entity that has as long of a track record of investing as Precious Metals. It has also gained in popularity. APMEX carries a wide variety of Precious Metals bullion from which to choose that offer great value outside of the stock market. Whether you are searching for secondary market metals, coins or bullion, there is a wide variety to diversify your portfolio. 

Items In Cart


There are no items in the cart.

AURIC