Precious metals can be broadly classified into two categories .Metals which has industrial as well as decorative value and metals which are not used industrially but bought for its notional value. In this category we can broadly classify Gold, Silver, platinum and palladium.
GOLD– If we look at the dynamics than gold has negligible industrial use .It has been bought for centuries as a security against currency and an investment. It is also used as a hedge against inflation in a growing economy. But with rise in interest rates people are liquidating their positions for investing in the booming stock exchanges around the world. Rising interest rates can have negative impact on the prices of gold. Gold mines can be found in South Africa, U.S.A, Indonesia, Western Australia and Japan.
SILVER-The metal has been used industrially as well as for investment. The gold silver ratio has been at a historical low for quite some time .Economy in general is not performing and demand has been muted across industrial sectors. The metal is expected to put up a better resistance than gold in the coming months. Silver is also used in solar panels and electrical applications. Silver is mostly found in Mexico, Poland, Bolivia, Turkey and Australia.
PLATINUM-More than half of the total known reserves are available in South Africa. In recent years supply disruptions for labor issues has been a major support for platinum prices. Platinum is used in catalytic converters, laboratory equipments, electrodes, jeweler, dentistry equipment and others. Platinum prices have made a recovery as the demand outlook has improved and an overall improvement in precious metals space.
PALLADIUM-Its has been performing well amidst economic down trend. With supply constraint changing the demand supply dynamics prices appears to be well supportive in the short term. Palladium is used in ceramic capacitors, electronic equipments like laptops, mobile phones etc., catalytic converters, and hydrogenation and dehydrogenation reactions. Palladium is found in North America, South America, Ural Mountains, Australia and Ethiopia.