Radiography of the new precious metals investor (gold, silver, palladium and platinum)

The profile of the investor has changed significantly in recent times. Coininvest, online portal specialized in buying and selling investment precious metalsoffers an x-ray of that new buyer.

Raquel Herrero, precious metals analyst for the platform, points out that gold is being shelter in this convulsive time, acting as a protection of capital. It is undoubtedly the most well-known precious metal, but silver, palladium and platinum are also important.

The profile of the investor is rejuvenating

Traditionally, men have been the ones who have invested the most, but this is something that is changing. As specified by Herrero, the profile is not only rejuvenating, but now women are a group more than interested in this product and that he is betting more and more on him.

Since 2020, following the financial earthquake caused by Covid-19, the number of clients investing in physical precious metals has increased, and although the bias is still male, there are more women than before. She also insists that perhaps being able to make an online purchase, let’s say more “aseptically”, facilitates the incorporation of women into this type of investment. Now, in addition, there are also increasingly younger people who start investing with smaller amounts, but they do so periodically.

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Thus, it reports that we are at a time when “We have those who seem to have moved part of their capital from more volatile assets to make an investment in physical metals for a very important capital, to those who venture to buy their first ounces of silver to test the market”.

It must be taken into account that the price of precious metals is not generated solely based on the proportion of metal that is destined for pure investment, which is actually quite small compared to the other uses of these metals, such as jewelry or industry. the silverfor example, notes Herrero, is used to solar panels, automotive, jewelry…so it specifies that it is another good option to bet on. The demand for metals for these other uses, together with the current sociopolitical and economic situation, influence the final price of the metal.

Young and poorly regulated products

The difference between these products and cryptocurrencies, apart from the fact that they are not tangible and are delocalized, unlike precious metals, is that they are very young products, very little regulated and tremendously volatile. Precious metals, on the other hand, are traditionally safer, something for life. In addition, as a curiosity, Herrero points out that “Physical gold is necessary for bitcoins to move, since they do so through computers and computer boards have gold contacts”.

Thus, it specifies that it is a long-term investment, which is normally made by buying pieces that will be stored for years. The fluctuation of the price of the metal is not so important in the short term, that is, they are assets with which profitability works, historically, after a few years.

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