Precious metals

Question

Precious metals

Quizplus · Accepted Answer

Precious metals are considered commodities, which means they are traded on commodities markets such as the NYMEX and COMEX. They are not as stable of an investment as stocks and bonds over time and do not offer a guaranteed return. While they can be purchased through mutual funds, these funds are still dealing in the commodity itself rather than investing in companies or stocks. As for being a hedge against deflation, while precious metals do tend to increase in value during times of economic uncertainty, this is not a guaranteed protection against deflation. Therefore, the best choice is C, which accurately describes precious metals as a commodity.

Precious Metals