Try our corporate solution for free!
(212) 419-8294
vianny.gutierrez-cruz@statista.com

Precious metals as an investment - statistics & facts

Precious metals have long been considered an important investment instrument, especially for people looking to reduce risk by owning an asset with an intrinsic value that cannot be easily eroded through inflation. Gold is the most prominent example, with many considering physical ownership of gold a hedge against cyclic economic downturns or even economic collapse. In fact, the demand for gold as an investment outweighs its demand for industrial uses - more so if you consider owning jewelry as a form of investment. This type of demand contrasts sharply to other precious metals. The industrial demand for silver, for example, is twice as high than its demand for investment - the opposite from gold. For platinum, the industrial demand was around 10 times the need for investment. This is likely due to the many different end uses of platinum.

Gold is not the fastest-growing

Gold and silver prices increased since 2019 and over the course of 2021, but when compared against price indices for five other precious metals did not grow as fast as the prices of iridium and, especially, rhodium. This price rise has been attributed to rhodium’s use in automotive catalytic converters required to meet strict emission requirements imposed by many countries, along with a constriction in supply. Accordingly, the price of rhodium is many times higher than the price of gold - by a factor of nearly 17 as of April 2021. Importantly, this demonstrates how the value of individual precious metals can be affected differently by broader market and political forces – it is notable that the price of rhodium fell with the onset of the coronavirus pandemic around February 2020, while the price of gold trended slightly upwards. This suggests gold may still be the safer investment to hedge against economic turmoil – just not the most profitable in this case.

ETFs and other entryways into precious metals

Investing in physical metal is one way to invest in precious metals, but this is not practical for many people as the cost of entry can be high and there is the requirement to safely store them. One way to overcome this problem is through exchange traded funds (ETFs) who purchase precious metals. This way the investor only needs to purchase shares in the fund, with the precious metal ETF’s rate of return tracking the underlying metal price. Another option is to trade futures, which are contracts locking in a purchase price for a future date that can then be traded. Finally, one can also invest in the shares of companies who mine precious metals, whose movements often track (although not fully reflect) precious metals prices. For example, the share prices of the five biggest platinum group miners has increased more than the share prices of the leading gold miners.

Key figures

The most important key figures provide you with a compact summary of the topic of "Precious metals as an investment" and take you straight to the corresponding statistics.

ETFs

Gold production

Rhodium

Interesting statistics

In the following 5 chapters, you will quickly find the 27 most important statistics relating to "Precious metals as an investment".

Precious metals as an investment

Dossier on the topic

All important statistics are prepared by our experts – available for direct download as PPT & PDF!
TOP SELLER

Precious metals as an investment - statistics & facts

Precious metals have long been considered an important investment instrument, especially for people looking to reduce risk by owning an asset with an intrinsic value that cannot be easily eroded through inflation. Gold is the most prominent example, with many considering physical ownership of gold a hedge against cyclic economic downturns or even economic collapse. In fact, the demand for gold as an investment outweighs its demand for industrial uses - more so if you consider owning jewelry as a form of investment. This type of demand contrasts sharply to other precious metals. The industrial demand for silver, for example, is twice as high than its demand for investment - the opposite from gold. For platinum, the industrial demand was around 10 times the need for investment. This is likely due to the many different end uses of platinum.

Gold is not the fastest-growing

Gold and silver prices increased since 2019 and over the course of 2021, but when compared against price indices for five other precious metals did not grow as fast as the prices of iridium and, especially, rhodium. This price rise has been attributed to rhodium’s use in automotive catalytic converters required to meet strict emission requirements imposed by many countries, along with a constriction in supply. Accordingly, the price of rhodium is many times higher than the price of gold - by a factor of nearly 17 as of April 2021. Importantly, this demonstrates how the value of individual precious metals can be affected differently by broader market and political forces – it is notable that the price of rhodium fell with the onset of the coronavirus pandemic around February 2020, while the price of gold trended slightly upwards. This suggests gold may still be the safer investment to hedge against economic turmoil – just not the most profitable in this case.

ETFs and other entryways into precious metals

Investing in physical metal is one way to invest in precious metals, but this is not practical for many people as the cost of entry can be high and there is the requirement to safely store them. One way to overcome this problem is through exchange traded funds (ETFs) who purchase precious metals. This way the investor only needs to purchase shares in the fund, with the precious metal ETF’s rate of return tracking the underlying metal price. Another option is to trade futures, which are contracts locking in a purchase price for a future date that can then be traded. Finally, one can also invest in the shares of companies who mine precious metals, whose movements often track (although not fully reflect) precious metals prices. For example, the share prices of the five biggest platinum group miners has increased more than the share prices of the leading gold miners.

Interesting statistics

In the following 5 chapters, you will quickly find the 27 most important statistics relating to "Precious metals as an investment".

Contact

Get in touch with us. We are happy to help.
Statista Locations
Contact Vianny Gutierrez-Cruz
Vianny Gutierrez-Cruz
Sales Manager– Contact (United States)

Mon - Fri, 9am - 6pm (EST)

Contact Ziyan Zhang
Ziyan Zhang
Customer Relations– Contact (Asia)

Mon - Fri, 11:30am - 10pm (IST)

Contact Kisara Mizuno
Kisara Mizuno
Customer Success Manager– Contact (Asia)

Mon - Fri, 9:30am - 5:30pm (JST)

Contact Lodovica Biagi
Lodovica Biagi
Director of Operations– Contact (Europe)

Mon - Fri, 9:30am - 5pm (GMT)

Contact Catalina Rodriguez
Catalina Rodriguez
Key Account Manager - LAC– Contact (Latin America)

Mon - Fri, 9am - 6pm (EST)