At Satori Traders, we applaud Investors who perform due diligence before putting their hard-earned money at risk. We provide Precious metals information for free to help consumers educate themselves. Satori Traders is a fee-only California-registered Investment Advisor. We receive management fees from our clients based on assets under management as detailed in our Investment Management Agreement. We also receive compensation from external companies when we send them referrals. Satori Traders only recommends companies that we have independently researched. The compensation we receive from these companies does not affect our analysis. We would be making the same recommendations without compensation. As a fiduciary and California-registered Investment Advisor, we set very high standards for the companies we associate with or recommend to others. Information that we provide to consumers will not include companies that fail to meet our quality standards. The compensation we receive from external companies may impact how and where those companies appear on our site, including the order in which they appear.
Precious metal companies to Invest in
There are several types of Precious metal companies to invest in. The choices can be divided into these broad categories:
Another way to categorize Precious metals companies is by their focus on either the production of physical metal or the storage of physical metal.
IRAs, Trusts, and ETFs provide exposure to physical metal in storage while miners and royalty companies provide exposure to the ongoing production of Precious metals.
Precious metal IRA companies
Precious metal IRA companies help investors add physical Silver, Gold, Platinum, and Palladium to their tax-advantaged Retirement accounts. In addition to providing self-directed IRAs, most of these companies sell Precious metals directly to the consumer.
Precious metal ETF and Trust companies
Precious metal ETF and Trust companies establish Investment vehicles that retail and institutional investors can participate in. These vehicles typically hold physical Precious metals or a Portfolio of Mining stocks. Investors can easily gain exposure to the Precious metals with these vehicles.
Precious metal Mining companies
Mining companies search for economically viable deposits of Precious metals and then attempt to bring those metals to market while making a profit in the process. Bringing a new discovery into production takes multiple years and lots of capital. The stocks of Mining companies tend to be volatile which attracts aggressive traders and speculators.
Precious metal Royalty companies
Because of the high risk involved in mining, banks are reluctant to lend to mining companies. Royalty companies (also known as "streamers") step into this void and provide capital to the miners in exchange for a percentage of their future production. The stocks of royalty companies tend to be less volatile than individual mining stocks and less affected by downturns in the price of Precious metals.
Best Precious metal to Invest in
There are eight Precious metals* in total, but the IRS only allows four of them in tax-deferred and tax-exempt Retirement accounts.
Most investors choose from Gold, Silver, Platinum, and Palladium when they are seeking exposure to the Precious metals.
Chemical symbol: Au
Atomic number: 79
Money, store of value, jewelry, artifacts
Central bank reserves, Investment, jewelry, dentistry, aerospace electronics
Chemical symbol: Ag
Atomic number: 47
Currency, store of value, jewelry, artifacts
Electronics, jewelry, Investment, solar panels, photography, silverware
Chemical symbol: Pt
Atomic number: 78
First researched 1748
Catalytic converters in automotive industry, Investment
Chemical symbol: Pd
Atomic number: 46
Discovered in 1803
Catalytic converters in automotive industry, Investment
* Precious metals: Gold, Silver, Platinum, Palladium, Ruthenium, Osmium, Rhodium, and Iridium
From an Investment perspective the best Precious metal to invest in is the one with the greatest amount of overall demand.
Silver and Gold have been in demand as money for thousands of years. Silver has been used as a currency in every human civilization documented throughout history, without exception.
Central banks continue to hold Gold as part of their reserves even though the Gold monetary system ended long ago (1931 in Britain, 1933 in domestic US, 1971 internationally). In fact, central banks around the World have been on a Gold buying spree since the Financial Crisis in 2008. China and Russia have more than tripled their acknowledged Gold reserves since 2008 and several countries have doubled their holdings.
Neither Platinum nor Palladium have a historic role as money.
Gold, Silver, Platinum, and Palladium all have Investment demand.
Human beings have recognized Silver and Gold as valuable substances for literally thousands of years.
As investors, it is reasonable to assume that deeply-ingrained human nature isn't going to change. When push-comes-to-shove, human beings are going to, once again, rally around Silver and Gold as the foundation of a healthy economy.
Platinum and Palladium have only been discovered in the last 200 years so we can't say anything about human nature in regards to these metals. Because the IRS allows Platinum and Palladium in self-directed IRAs the metals will have some level of Investment demand, but that demand is likely to be trivial relative to Silver and Gold.
Platinum and Palladium are used primarily as catalysts (catalytic converters) in the automotive industry.
Gold is used in electronics, dentistry, medicine, aerospace, jewelry, and art.
Silver has the widest range of commodity demand, including solar panels, electronics, soldering, medicine, automotive, batteries, water purification, jewelry, and art.
Silver has natural properties that make it useful in a wide range of applications. It is the most reflective of all metals, has the highest electrical conductivity of all metals, and its antimicrobial effects work against a broad spectrum of viruses and bacteria.
From an Investment perspective the best Precious metal to invest in is the one with the greatest amount of overall demand
Despite its usefulness and widespread demand, Silver remains relatively inexpensive. Because of Silver’s low cost, it doesn’t make economic sense to recover the metal after it has been used as a commodity. The small amount of Silver in a mobile phone, for example, is used and then discarded as electronic waste.
In contrast, the high cost of Gold limits its usage as a commodity while also making it worthwhile to recover and recycle the Gold that is used.
Let’s compare the metals side-by-side and see if we can draw any conclusions:
* data as of 04/02/2022
The table above makes it clear that Silver is by far the best Precious metal to invest in. In addition to its long history as money, Silver has the greatest commodity demand, gets thrown away instead of being recycled, and has the lowest cost of the four metals.
Silver's low cost makes it accessible to a wider range of investors. While a $2000 Gold Coin is too expensive for some investors, everyone can afford a $30 Silver Coin. Because of this cost difference it is likely that Investment demand for Silver will far exceed Investment demand for Gold.
At Satori Traders we are expecting Silver to greatly outperform Gold on a percentage basis in coming years. We have overweighed our Portfolio towards Silver and we have encouraged our clients to do the same.
Are proof Coins a good Investment
There are certainly two sides of the Coin, so to speak, when answering the question, Are proof Coins a good Investment?
Proof Coins carry a large premium over the value of the metal contained in the Coin.
For example, Gold is currently priced at $1904 an ounce (04/26/2022) and American Gold Eagle Coins (1 ounce of Gold) are priced at $2022.
The proof version of this same Coin is priced at $2212.
That means Premiums on the two Coins today are 6% and 16% over the price of Gold.
At Satori Traders our philosophy is to obtain the largest amount of Precious metal for the least amount of money.
Largest amount of Precious metal for the least amount of money
Paying a 17% premium for a pretty Coin would never make sense as long as less expensive alternatives were available.
Gold is Gold. It doesn’t matter whether the Gold is a proof Coin in a fancy box (with a certificate of authenticity!) or a beat-up Krugerrand from the scratch-and-dent bucket. One ounce of Gold is one ounce of Gold, period.
Sales people touting the wonders of proof Coins typically talk about “rarity”, “quality”, and “investor demand” as part of their sales pitch for proof Coins over cheaper options. Savvy investors recognize sales hype when they hear it and accordingly give it the attention it deserves.
Whether it is Birch Gold Group or any other Precious metals IRA company, one of the most common customer complaints involves the purchase of proof Coins and a loss of money when trying to liquidate the Investment. It’s quite easy to avoid this potential issue by not purchasing proof Coins in the first place.
How do I invest in Precious metals?
The ideal Precious metals Portfolio begins with physical metal that the investor has easy access to.
Some Investment advisors tell their clients, “If you can’t touch it, you don’t own it”, as a way to encourage personal possession.
Bullion bars and Coins are preferable to numismatic Coins which carry a high premium over the cost of the metal they contain.
Proof Coins carry the highest premium of all and they are very rarely a good financial Investment.
After securing a supply of locally-stored physical Precious metals, investors can acquire additional physical Silver and Gold using third-party storage options like a Precious metals IRA or the Perth Mint’s Certificate Program.
Self-directed IRAs allow investors to use their tax-advantaged retirement savings to purchase and hold physical Precious metals. Many investors take advantage of this option as a means of diversifying and protecting their traditional Portfolio of stocks and bonds.
Whenever third-party storage of Precious metals is involved, investors should insist on having their physical metal segregated or fully allocated. Avoiding unallocated and unsegregated Investment options reduces the risk involved with third-party storage.
Additional exposure to the Precious metals can be gained using securities and futures.
* Futures carry the risk of assignment and are not suitable as Investments. Options on futures do not have the risk of assignment but they expire (mostly worthless) just like stock options.
Gold IRA companies reviews
The most important factor for choosing a Gold IRA company is trust. You have to feel confident that your retirement savings are in safe hands.
Hearing what other investors have to say can help us determine whether a company is trustworthy or not.
Gold IRA company reviews posted by actual investors can be found on these websites:
There are several factors to consider when evaluating Precious metals companies:
The "best" Precious metals IRA company may be different for each investor depending on the factors they choose to focus on. In the table below we list some reputable companies that offer self-directed IRAs. Visit the company websites for more information.
Precious metal company stocks
One of the key factors to consider when investing in the stocks of mining and royalty companies is the geographic location of the mines involved.
American investors wanting to “invest locally” in US Precious metals companies are in luck because Alaska and Nevada are two of the most mining-friendly districts in the world.
From an American-focused perspective we could make this list of the most desirable locations for mining Precious metals:
A conservative mining stock Portfolio might consist of only companies operating in the US, Canada, and Mexico. Eliminating the “everywhere else” category reduces risk and filters out many of the 2000+ mining companies listed on US, Canadian, and Australian stock exchanges.
Top Precious metal companies
Mining stocks tend to magnify price movements in the underlying Precious metals by a factor of 2 or 3.
If physical Gold gains 10% in price, mining stocks are likely to increase by 20 or 30% as a group, with a few of the stocks significantly outperforming the overall sector.
Identifying the top Precious metals companies is important because mining stock investors want to find the companies that are likely to outperform the overall market.
Instead of a 20 or 30% gain these investors are seeking the infamous “10-bagger”, which would mean a 1000% return on their Investment.
At Satori Traders we have a number of filtering criteria that we use when sorting mining stocks into the categories below and then ranking each stock for its potential Investment return:
Based on our assessment of macro trends we have focused our current Investment Portfolio on mining companies in the emerging producer category. We believe these companies will be rewarded by the market as they move into production, and they will also benefit from the rising price of physical metals.
The explorer / developer category represents higher risk but a greater potential for “ten-bagger” returns. At Satori Traders we identify the best of these fledgling mining companies and allocate a small portion of our Portfolio to their shares.
Precious metals stock with Dividends
Precious metal stocks with dividends allow investors to gain exposure to Silver and Gold while receiving a regular stream of income.
The mining companies in the table below have US-listed shares paying regular dividends:
Newmont Mining (NEM)
Agnico Eagle (AEM)
AngloGold Ashanti (AU)
Yamana Gold (AUY)
Gold Fields Ltd. (GFI)
Kinross Gold (KGC)
Kirkland Lake Gold (KL)
Barrick Gold (GOLD)
* data as of 04/02/2022
Precious metal Stocks list
Satori Traders maintains several Precious metal stocks lists.
The mining stocks below are just a few examples of the companies currently held in our Portfolio or on our watch list for potential Investment.
No Investment in these companies is being recommended or implied.
Satori Traders and its principals may have positions in the companies listed here and may buy or sell shares in these companies at any time.
About Satori Traders
Satori Traders LLC is a California-registered Investment Advisor specializing in the Precious metals.
Bryan V Post is a California-registered Investment Advisor Representative and the founder of Satori Traders.
Bryan has worn numerous hats during his life: Engineer, Portfolio manager, Precious metals Investor, Technical analyst, Proprietary trader, Swing trader.