Advantages:
1. Safe-haven property: Precious metals, especially gold and silver, are usually regarded as safe-haven assets, which can provide safe-haven functions when the economy is uncertain or the market is turbulent.
2. Inflation hedging: As the supply of precious metals is relatively stable, its value may rise during inflation to hedge the risk of currency depreciation.
3. Diversified portfolio: Introducing precious metals into the portfolio can increase diversification and reduce the risk of the overall portfolio.
Disadvantages:
1. No income: precious metals do not generate income, such as dividends or interest, and their value mainly depends on the market price at the time of buying and selling.
2. Volatility: The precious metal market may fluctuate greatly, especially in the short term. This may increase the risk of investors.
3. Market dependence: The price of precious metals is influenced by many factors, including market sentiment, global economic situation and geopolitical events. It is highly sensitive to these factors.
Investment advice:
1. Research the market: Before investing, deeply study the precious metal market to understand the market trend and the factors affecting the price.
2. Planning: Make clear investment objectives and plans, including investment period, risk tolerance and exit strategy.
3. Carefully manage risks: Don't put all your investments in precious metals, ensure diversified investment portfolios and manage risks reasonably.
Generally speaking, precious metals can be part of a portfolio, but investors should carefully consider them according to their personal circumstances and goals. It is best to consult a professional financial adviser before making any decision.