Metals can be compared to a stimulant confidant on the commodity market. They remain intact and favor the buyer even in slumps. Their utility is what drives their demand on the market. They are more than just worn; they can also be used in electronic goods.
Every metal is supported by useful properties that make them attractive and viable options for investment.
The following precious metals are some of the most sought-after, and have made inroads to the market during times of trouble:
1. Platinum
The annual average platinum supply is 130 tons per financial year. Investors are reluctant to place their trust in platinum due to its rarity. The majority of the world’s metal comes from South Africa, Russia, and Columbia. This is primarily due to the abundance of gold-bearing deposits there. These countries have favorable geographical conditions for excavation.
Platinum can also be found in outcroppings and rocks located near the surface plutonic rock (chromite or olivine), as well. According to Statista’s 2019 report 34% of platinum is used in autocatalyst, and 24.2 percent in jewellery making. A further 13.37 percent goes into investments.
Use of platinum
- Both electronic and electrical appliances.
- Dental products
- It is malleable and ductile, which makes it a great choice for jewellery.
- It plays a major role in the creation of defence systems and machines. It is used to improve performance of jet engine parts and missile nose cones.
- Automobile catalytic converters
- Platinum alloys are used to create artificial valves for the human heart.
Platinum has many benefits
- The effects of corrosion and oxygenation are not felt.
- It’s treating cancer with chemotherapy (as one component).
- A great investment for commodity traders.
2. Gold
Gold is a promising and valuable metal that has never seen its value drop and boasts a history of thousands of years. It doesn’t disappoint even during major crises or slowdowns and it favors its buyers by strengthening its pricing. The total gold mine reserve has remained fairly stable over the last decade.
The total gold reserves worldwide in mines around the world (Statista), has increased from 51, 000 metric tonnes in 2010 to 50,000 in 2019. The 2016 record was 57,000 metric tonnes. However, since then the reserves have been declining. In 2017-2018, the numbers were 54,000 each. It dropped in 2019, and the market is experiencing a surge in its prices.
Use of gold
- Since ancient times, jewellery is not associated with gold (80% of the metal is used in it).
- Because of its durability, it is very useful for filling cavities in teeth. It can also be used to replace a damaged tooth or other dental problems.
- Making medals and statues for the Olympics and other sporting tournaments.
- Electronic and electrical products and appliances, such as computers, television sets, and smartphones.
- It is used in the detection of cancer and in medicine to treat rheumatoidarthritis.
Gold has many benefits
- It doesn’t corrode.
- Investors are never disappointed by investment.
- For long-term traders, the return value is attractive.
PS.- Chinas has held the top position for highest gold excavations for many years. This is followed by Russia, Austral and USA. For many decades, South Africa was the largest producer of gold. It has lost its panache since 2008.
3. Silver
People who can’t afford expensive metals like platinum or gold can buy silver at a fraction of the cost of gold and platinum. This metal is a great way for investors to start making inroads into the commodity market. Its use in jewellery and industries allows for global expansion of employment.
According to metal sources, the total silver supply in 2011 was 1009.7 millions ounces. This is against the demand of 1045.4million ounces (year-on-year). The Covid-19 pandemic has slowed the supply to 978.1 million ounces in 2020.
Silver usage
- Making jewellery
- Making utensils and tableware
- It is used in mirrors as it is the best reflector.
- It’s found in batteries, dental amalgams, and electrical and electronic appliances.
- Statues and medals
- This is used to create high-quality images in photography.
- Silver paints can be used to make printed circuits.
- It is infused with anti-bacterial properties. It is used by clothing companies to eliminate unpleasant odours.
Silver has many benefits
- It is used to heal wounds and improve skin conditions.
- It kills and prevents virus infections.
- International Forum for Allergy and Rhinology conducted a 2015 study that showed it could treat allergies and sinus problems.
- You can purify water.
PS.- Silver’s preciousness dates back to prehistoric times. It was one the seven metals that were antiquity.
4. Palladium
In 1803, the silvery-white metal was discovered. William Hyde Wollaston, an English chemist, was the inventor of the metal. It is one the most rare elements on Earth. Pallas, an asteroid that struck the earth in the year 792, gave Pallas its name. Surprise! Palladium’s price is twice that of platinum. This makes it one of the most expensive commodities on the market.
Palladium is used extensively in the automotive sector, just like platinum. It is a cubic crystalline metal. The two largest producers of the metal have been Russia and South Africa for the past five years, 2015-2019. In terms of mining, the latter was able to surpass the former in 2017.
PS:- Palladium, along with osmium, ruthenium, and iridium is part of the platinum group (PGM). It doesn’t react to
Use of Palladium
- Hydrogenation of unsaturated hydrocarbons
- Automobile catalytic converters
- It is used in fuel cells and other electronic devices, such as laptops and mobile phones.
- Medical field.
- Palladium has many benefits
- It is resistant to corrosion.
- It is not toxic.
- Why should you buy precious metals?
Precious metals can be found in their physical form, which makes them more appealing than stock and other financial markets. Even during global economic recessions, they continue to rise. It is evident that gold prices have risen significantly.
After the September 2008 collapse of Lehman Brothers Inc (fourth largest US investment bank), the price of silver rose to $ 1900 an ounce in October 2011, from $ 700 an ounce. Similar to the above, silver prices were $9.09/oz at the close of October 2008. At the slowdown, it reached $13.94/oz.
Inflation is not an issue because precious metals markets are stable. They are intrinsically valuable and cannot be minted in additional numbers, like currency notes. They are insurance against an upheaval scenario.
