Gold vs. Rhodium: Which is the Best Investment?

With so many precious metals on the market to invest in, it can be tough to decide which is best. There are many ways to invest in these metals, as well.

Gold has physical bullion, coins, jewelry, stable coins like gold coins, stocks, and more. Much of the same can apply to its related precious metals, like silver or rhodium. It’s a lot to consider, but we’re here to help.

In this piece, we’re going to break down which is the better investment – gold or rhodium – by breaking down their pros and cons.

Pros and Cons of Gold

Gold is an ancient metal. The commodity has been used as a type of currency by humans for as long as we can remember. It’s appealing due to the shiny yellow glow and sleek aesthetic, which lent it value.

It’s still used today, though not as a normal currency. Instead, gold is used as a hedge against the economy. It’s an inflation-resistant way to keep your funds going strong. It’s also given as a gift to others in the form of jewelry and similar formats. This versatility is part of what makes the asset so appealing. Interestingly, many banks still hold gold in their vaults as well.

You can invest in gold via a vendor, though they’ll charge some extra fees for doing so. Of course, that physical gold will mean you have to store it in a vault or pay a third party to do so. It’s asking you to spend more money to protect your investment.

Of course, there is the stable coin method. Most precious metals have a cryptocurrency-tied asset like Gold Coin. These allow you to invest in the commodities anonymously and at fractional amounts friendly to all budgets.

Just note that no matter how you invest in gold, the asset is a relatively stable one. There’s no getting rich quick with this metal, at least not commonly. Instead, considering gold is seen as an economic hedge, that stability attracts investors. If you’re a risk-averse investor, this is the metal to start with.

Pros and Cons of Rhodium

While gold is a somewhat common asset in precious metals, rhodium is the opposite. This is one of the rarest metals on the market and hasn’t even been around for that long.

It has an industrial use, with jewelers utilizing rhodium to polish their gold or LCD screens to stay extra strong. The automotive industry takes advantage of rhodium as well, as it does many other precious metals. This gives it an inherent value that won’t disappear overnight.

However, note that this rarity causes rhodium’s price to be somewhat volatile. This is ideal for short-term investors who like to buy low and sell high, assuming they have the time to watch the market. But that’s a risky bet and one only those who can afford it should partake in.

There’s no guarantee of more rhodium at any time. The metal is only found as a byproduct of platinum – a rare asset in and of itself. If demand is high, but rhodium cannot be found, the price is sure to skyrocket.

Sometimes, workers at platinum mines may riot, or tensions between countries holding rhodium could rise. These are entirely unpredictable situations and can significantly affect rhodium’s price. Despite its rarity, investors can still purchase the metal as a stable coin like a rhodium coin. This ensures your ability to invest regardless of stock.

Also, rhodium has more limited options than gold in terms of holding it. For one, the asset is easily breakable, making it a terrible choice for jewelry. Instead, you’ll probably have to get rhodium in bar form, as coins are hard to come by. This can be a big pain, so make sure you have a storage solution ready.

Conclusion

You are now aware of the pros and cons of both rhodium and gold. Hopefully, you can make a better decision now based on your budget and investment personality. Good luck with precious metals!

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About FinanceGAB

Ajeet Sharma is a financial blogger and I am blogging since 2017. Financegab is a personal blog dedicated to personal finance. The main aim of this blog to help people to make well-informed financial decisions.
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