Precious Metals vs. the Stock Market

The main difference between these two types of investments is that stocks fall under the classification of “equities,” meaning that the stockholder technically owns a tiny portion of the company that issued the stock, while Precious Metals are classified as “commodities,” meaning that the holder of the Precious Metal owns an actual physical product.

Stockholders make money when the companies they hold equity in generate more profit or improve their business standing in some other way, creating an increased demand for shares in the company and driving up price of their stock. Precious Metal investors make money when rising demand for Precious Metals increases, causing the value of their holdings to increase.

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