Precious metals are rare, naturally occurring of high economic value. Precious metals, particularly the noble metals, are more corrosion resistant and less chemically reactive than most elements. They are usually ductile and have a high lustre. Historically, precious metals were important as currency but they are now regarded mainly as investment and industrial raw material. Gold, silver, platinum, and palladium each have an ISO 4217 currency code.
The best known precious metals are the precious coinage metals, which are gold and silver. Although both have industrial uses, they are better known for their uses in art, jewellery, and coinage. Other precious metals include the platinum group metals: ruthenium, rhodium, palladium, osmium, iridium, and platinum, of which platinum is the most widely traded.[ Platinum Guild: Applications Beyond Expectation ]
The demand for precious metals is driven not only by their practical use but also by their role as and a store of value. Historically, precious metals have commanded much higher prices than common industrial metals.
Bullion
A metal is deemed to be
precious if it is rare. The discovery of new sources of ore or improvements in mining or refining processes may cause the value of a precious metal to diminish. The status of a "precious" metal can also be determined by high
demand or
market value. Precious metals in bulk form are known as
bullion and are traded on
. Bullion metals may be cast into
or minted into
. The defining attribute of bullion is that it is valued by its mass and purity rather than by a
face value as
money.
Purity and mass
The level of purity varies from issue to issue. "Three nines" (99.9%) purity is common. The purest mass-produced bullion coins are in the Canadian Gold Maple Leaf series, which go up to 99.999% purity. A 100% pure bullion is nearly impossible: as the percentage of impurities diminishes, it becomes progressively more difficult to purify the metal further. Historically, coins had a certain amount of weight of
alloy, with the purity a local standard. The
Krugerrand is the first modern example of measuring in "pure gold": it should contain at least
Troy ounce of at least pure gold. Other bullion coins (for example the British Sovereign) show neither the purity nor the fine-gold weight on the coin but are recognized and consistent in their composition. Many coins historically showed a denomination in currency (example: American
double eagle: $20).
Coinage
Many nations mint
. Although nominally issued as
legal tender, these coins' face value as currency is far below their value as bullion. For instance, Canada mints a
gold coin (the Gold Maple Leaf) at a face value of $50 containing one troy ounce (31.1035 g) of gold, as of January 2022. The USD to CAD exchange rate averaged 1.129 in July 2009 according to
OANDA Historical Exchange Rates. Although the exact moment that the $1,075 figure was determined is unknown, it may be considered a reasonable value for the time. Bullion coins' minting by national governments gives them some
numismatism value in addition to their bullion value, as well as certifying their purity.
One of the largest bullion coins in the world was the 10,000-dollar Australian Gold Nugget coin minted in Australia, which consists of a full kilogram of 99.9% pure gold. In 2012, the Perth Mint produced a 1-tonne coin of 99.99% pure gold with a face value of $1 million AUD, making it the largest minted coin in the world with a gold value of around $50 million AUD.
The Reserve Bank of Zimbabwe mints the gold Mosi-oa-Tunya (coin) which is recognized as legal tender at the market value for its gold content.
Economic use
Gold and silver, and sometimes other precious metals, are often seen as defensive assets against both
inflation and economic downturn.
have become popular with collectors due to their relative affordability, and, unlike most gold and platinum issues which are valued based upon the markets, silver issues are more often valued as collectibles, at far higher than their bullion value.
Industrial use
Platinum and
palladium are key catalysts in
hydrogenation reactions and emission-reducing catalytic converters,
while gold is used in oxidation reactions and nanotechnology due to its stability.
have been used in the production of
sulfuric acid and
nitric acid for centuries.
Additionally,
gold and
silver nanoparticles are used in
biosensors and solar cells, underscoring their value in sustainable technologies.
Aluminium
Aluminium is now commonplace but was considered to be a precious metal until the late 1800s. Although aluminium is the third most abundant element and the most abundant metal in the Earth's crust, it was at first found to be exceedingly difficult to extract the metal from its various non-metallic
. The great expense of refining the metal made the small available quantity of pure aluminium more valuable than gold.
Bars of aluminium were exhibited at the Exposition Universelle of 1855,
and Napoleon III's most important guests were given aluminium cutlery, while those less worthy dined with mere silver.
In 1884, the pyramidal capstone of the Washington Monument was cast of 100 ounces of pure aluminium. By that time, aluminium was as expensive as silver.
The statue of
Anteros atop the Shaftesbury Memorial Fountain (1885–1893) in London's Piccadilly Circus is also of cast aluminium. Over time, however, the price of the metal has dropped. The dawn of commercial electric generation in 1882 and the invention of the Hall–Héroult process in 1886 caused the price of aluminium to drop substantially over a short period of time.
Rough world market price ($/kg)
|
|
| 14,950 |
| 302,220 |
| 46,440 |
| 670 |
| |
| |
| |
| |
| 147,890 |
| 31,010 |
| 59,040 |
| |
| |
|
See also
-
Alchemy
-
Gemstone
-
Gold as an investment
-
Hallmark
-
List of bullion dealers
-
List of elements facing shortage
-
Metal as money
-
Metallurgical assay
-
Noble metal
-
Palladium as an investment
-
Platinum as an investment
-
Silver as an investment
-
Synthesis of precious metals (precious metal transformation)
-
Taxation of precious metals
-
Troy weight
External links
