Investing in Precious Metals A Beginner’s Guide to Precious Metals

This means that precious metals ETFs are subject to a maximum federal long-term capital gains tax rate of 28%, higher than the 20% cap for stocks, bonds, and other investments. This higher tax rate can investing in metals have an impact on your investment returns, so it should be a part of your calculation as you consider these investment funds. Investing in these ETFs carries inherent risks, mainly market volatility.

How is Gold Formed and Where Does it Come From?

Similar to platinum, just two countries produce the bulk of global supply, with Russia and South Africa accounting for 84% of output. Like other precious metals, palladium’s price is driven by the market and is vulnerable to external business, geopolitical and environmental factors. For example, its aforementioned price surge coincided with Russia’s 2022 invasion of Ukraine, over concerns about Russia’s ability to meet global demand. Platinum — like gold and silver — is priced and traded on the market. However, there’s far less of it to go around, and this can drive up the price.