Apollo Investment Management – Precious Metals As an Investment Backstop
Investing in precious metals has a long history, reaching back to before the establishment of stock exchanges in the 17th century. It’s always been a lucrative — and highly volatile — area of trade.
London, UK (PRUnderground) September 30th, 2019
Today a diverse portfolio often includes precious metals. As an investment and store of value — especially during times of economic turmoil — precious metals have a long track record. In addition, they are crucial raw materials in several industrial sectors that modern civilisation depends upon.
Apollo Investment Management, a U.K. firm specialising in managing client portfolios, embraces precious metals as an asset group to build wealth.
“I wouldn’t make precious metals the lynchpin of a portfolio,” says a Director at Apollo. “But they can and should be a piece of one.”
Gold is, of course, the best-known precious metal. Not only known as one of the earliest forms of money, gold is also a metal that will not rust or corrode and is a superior conductor of electricity, giving it a practical value in several industrial applications. But its monetary value is driven by its acceptance as a safe investment haven and its deep history as the backstop of paper currency.
Though it has a lesser role as a store of value, silver is a more broadly utilised industrial metal — making its market price more volatile. Like gold, it is often used in jewellery, but is also crucial to the manufacture of batteries, superconductors, microcircuits, and medical devices.
The final member of the precious metal triptych is platinum. Rarer than gold or silver, it is vital to the automotive sector as a key part of catalytic converters, which help to negate exhaust emissions. It’s also crucial to chemical refiners and the computer makers.
Other important precious metals include palladium, copper, rhodium, and ruthenium.
There are a number of ways to invest in precious metals. Commodity exchange-traded funds (ETFs) exist for gold, silver, and platinum. The companies that extract precious metals can be invested in. Money can be put in the futures and options markets.
Metal can be purchased directly in the form of bullion, coins, bars, and jewellery. Certificates that do not entail having to deal with the physical reality of possessing metals are available.
From an investment perspective, one of the key aspects of precious metals is that they lessen volatility and risk for a portfolio over the long-term. This is because their price is not correlated to that of stocks and bonds and they offer inflationary protection because of their rarity.
As with any investment, there are risks. Precious metals are inherently volatile, reacting to both macroeconomic swings in overall economic activity and microeconomic fluctuations in supply and demand for any particular metal. Serious investing — and wealth creation — with precious metals demands a long-term plan and understanding of how such holdings fit into the rest of one’s diversified portfolio.
“Although there are moments in the market when profit can be had, ultimately investing in precious metals is about the long-term,” the Director at Apollo says. “They’re a way to create balance and variety to your holdings.”
This kind of advice and guidance is what Apollo Investment Management can offer to any client.
- Please consult a registered investment advisor before making any investment
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About Apollo Investment Management
We are a fully authorized and FCA regulated company proud to put our clients first and work with transparency and integrity. We tailor investment portfolios to suit the individual financial goals of our clients to help them make wise and safe investments with steady returns.