By Reico Wong

INVESTORS often think about investing in gold, silver and other precious metals only in times of uncertainty, but these assets can be solid investment choices regardless of economic conditions.

Precious metals are rare in nature and have strong, intrinsic value, as opposed to the relative value of paper currency. The metals are thus perceived as a hedge against inflation or financial downturns.

In good times, investing in precious metals can also be an effective way to diversify your portfolio.

Experts say that demand for metals is expected to rise substantially, in line with the ongoing development of emerging markets and their investment in infrastructure.

"The expected growth in consumption of metals should lead to strong returns for investors," said asset-management group Schroders.

It added that supply constraints in certain metals, due to factors such as under-investment in exploration and research and development, would drive up long-term pricing trends.

That said, precious metals can be highly volatile investment tools.

Their prices can swing wildly, depending on many factors, such as the rise or fall of the US dollar, bond yields, inflation and global economic conditions.

Financial experts recommend that precious metals should typically make up a small proportion of a portfolio - not more than 10 per cent.

Here's a look at key precious metals and the market outlook for them.