Platinum and palladium

More economically sensitive than gold, platinum and palladium look set to remain in high demand - it is estimated that one fifth of everything the world uses either contains or requires platinum.

Both metals are widely used in catalytic converters that are part of car exhaust systems. The demand for such devices has increased over the years as governments worldwide strive to implement tougher pollution-emission standards.

Mr Land said platinum and palladium prices ran up early in the year on the back of improved automotive demand and heightened investor interest around the launch of the platinum and palladium physical exchange-traded funds in the United States market.

The long-term outlook for the two metals remains positive, according to commodities-market research and asset-management firm CPM Group.

It cited compelling fundamentals resulting from constrained supply and rising fabrication demand.

These factors are expected to increase investor interest in the metals, adding to the upward trend in prices.

Still, investors who lack experience in precious metals should consider investing in them through mutual funds.

Mutual funds are typically one of the safest ways of diversifying a portfolio and they offer investors a variety of securities to invest in.

For example, the Schroder Alternative Solutions Gold and Metals Fund invests in futures and other commodity-linked derivative instruments, while the Franklin Gold and Precious Metals Fund focuses on the equities of companies that mine precious metals.

Since these funds are professionally managed, investors can enjoy peace of mind amid an uncertain market.

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