Precious Metals Definition
A classification of metals that are considered to be rare and/or have a high economic value. The higher relative values of these metals are driven by various factors including their rarity, uses in industrial processes and use as an investment commodity.
Precious metals include, but are not limited to: gold, silver, platinum, iridium, rhodium and palladium.
Historically, precious metals have served as a store of wealth and have long been prized as the only truly reliable hedge against inflation. As tangible commodities with intrinsic value, they offer distinct advantages over stocks, bonds, and other paper assets. While the value of stocks can decline absolutely, precious metals such as gold, silver, palladium and platinum always retain a value, regardless of conditions. Even when compared to other hard assets, such as real estate or fine works of art, precious metals compare favorably based on their high degree of liquidity and portability.