Precious metals, or precious metals, are so named because of their rarity and scarce resources. The term is used for metals that have a high economic value due to their use in industrial enterprises, their protection against currency inflation and their historical value, and is a frequently preferred investment instrument by investors.

As rare commodities valued by investors, precious metals have historically been used as the basis of money, but today they are traded as a portfolio diversification tool to protect against inflation.

Investors can buy precious metals in a variety of ways, including physical bullion or coins, derivatives markets or precious metal EFTs.

Interest in precious metals investments continues to grow as some metals are used in advanced electronics. Gold, silver and platinum are the most common precious metals traded by investors. Other precious metals include palladium, ruthenium, rhodium, iridium and osmium.