Glossary A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z | 1 | 3 | 4 | 5 Definitions by InvestorWords.com   What is...? precious metals Gold, silver, and platinum are all precious metals, and can be bought and sold for investment purposes. Investment-grade metals typically come in the form of bullion bars, ingots, and coins. It is also possible to invest in precious metals and/or the precious metal industry through certain mutual funds and mining company stocks. Because the value of precious metals can fluctuate independently of other asset types, some investors will purchase these metals as part of a portfolio diversification strategy. Precious metals can also be used as a potential hedge against inflation. Several types of mutual funds available at E*TRADE Securities LLC focus on gold and other precious metals.* You can view these funds, along with other equity sector funds, in our Mutual Funds section. Please be aware that securities of companies involved in precious metals-related industries are considered speculative and the prices of these securities may experience greater volatility than companies not involved in this industry. Because of the concentration in precious metals securities, these types of funds may experience greater volatility than a broader based fund. E*TRADE Securities LLC currently does not facilitate precious metals transactions. *For a prospectus containing more complete information, including fees and expenses, please go to www.mutualfunds.etrade.com. Read the prospectus carefully before you invest. Copyright ©2009 by InvestorGuide.com. All Rights Reserved.