Investing in precious metals: These are the most valuable precious metals
They shimmer in the colors gold or silver and have been captivating people for thousands of years: precious metals. Jewelry metals in particular are known and sought after by enthusiasts, collectors and investors due to their limited availability, their beauty and their ability as a store of value. But there are also some unknown metals with which investors can “refine” their portfolio.
What are precious metals?
Chemically speaking, precious metals are Metals that are particularly resistant to corrosion. For various reasons, they sometimes have a high economic value. For example because of their rarity, their use in industrial processes or in jewelry manufacturing. Well-known precious metals such as gold, silver or platinum also have a long history as stores of value and means of payment and serve as a hedge against currency inflation. Precious metals also play an important role in the alchemy and mythology of many cultures. For example, the Romans and Egyptians attributed silver to the moon because of its color and whitish glow. Auch In alchemy, the moon stands for silver. In many stories and fairy tales, metal is still considered a type of weapon that can kill werewolves and other mythical creatures. “Yellow” gold, on the other hand, is associated with the sun.
Oldest tangible assets in the world
The history of precious metals dates back to the 6th century BC. Even then, people valued gold and silver because of their scarcity, which made them coveted and at the same time relatively transportable valuables to save and trade. The shiny metals were also used to make jewelry and ritual objects and were considered symbols of wealth and power in many cultures.
Gold and silver were the most frequently used precious metals for coins in ancient times, e.g. by the Egyptians, Greeks and Romans. In the Middle Ages, the Importance of precious metals as a means of currency through crusades and growing long-distance trade. Gold and silver in particular reach Europe via waterways through the newly discovered America. For well over 1,000 years, these precious metals were a common means of payment among Romans, Greeks and also in Far Eastern cultures. Because the barter trade that was common in the past (e.g. grains for skins, spices for fish) was not exactly practical, as trading partners could of course not always offer the goods that the other person just needed. Minted money made of silver or gold was therefore the better means of payment and also promoted the flourishing world trade.
From the 17th century, the first governments began producing paper money that could be exchanged for gold or silver coins or gold bars. These notes were gold and silver certificates issued in the United States in the late 19th and early 20th century.
Today's common fiat money, i.e. an artificially created national currency, has no intrinsic value. It can be printed by central banks in any quantity and is therefore subject to inflation. That is why many investors rely on “real values” as a deposit hedge as a hedge against too loose fiscal policy, economic crises or hyperinflation. In other words: precious metals.
These are the most valuable precious metals
Some of the world's The most expensive metals are currently (as of October 2023):
- gold is one of the most famous precious metals and has been used for thousands of years for jewelry, coins and as a store of value (e.g. in the form of bars). It is highly resistant to corrosion and oxidation.
Price: approx. 1,900 dollars per troy ounce
- silver is used both for jewelry and in industry. It has excellent electrical and thermal conductivity properties and is therefore used in electronics, chemistry and photography, among others.
Price: approx. 22 dollars per troy ounce
- platinum is one of the rarest precious metals and is used in catalysts for the automotive industry, jewelry manufacturing, medicine and electronics.
Price: approx. 885 dollars per troy ounce
- palladium is usually a “by-product” of gold, silver or copper mining. It is very rare and is also used in catalytic converters, particularly in vehicle exhaust systems. It is also in demand in electronics and jewelry manufacturing.
Price: approx. 1,150 dollars per troy ounce
- rhodium is mainly used to coat jewelry and as a catalyst in the chemical industry. The metal is so rare that it is difficult to find and extract. Rhodium is primarily found in South Africa, where it is mined as a by-product of platinum and nickel.
Price: approx. 4,750 dollars per troy ounce
- osmium is extracted in the course of extracting other precious metals such as gold or platinum. The total amount of recoverable worldwide is estimated at just a few m². Osmium is used in the jewelry industry and is also attracting more and more investors.
Price: approx. 45,000 dollars per troy ounce
- plutonium It is considered a heavy metal and, like most of its kind, is poisonous. It is said that there are around 300 tons of natural plutonium worldwide. Plutonium is also produced in nuclear reactors and is used, among other things, as nuclear fuel for nuclear power plants.
Price: approx. 90,000 dollars per troy ounce
- Californium: Like plutonium, the metal is also radioactive. It is produced in small quantities in nuclear reactors - but does not occur in nature. The most expensive metal in the world is used, for example, in the oil industry to identify oil and water layers in boreholes. The special feature of Californium-252 lies in its ability to release neutrons. It spontaneously emits high-energy neutrons, making it a significant source of neutron radiation.
Price: approx. 810 million dollars per troy ounce
Investing in precious metals
Not all of the metals mentioned are tradable for private investors. For example, it is almost impossible and also not desirable to purchase plutonium or californium. On the other hand, investors can purchase precious metals such as gold, silver, platinum or even osmium as stable “deposit protection” in various ways. If you want to hold the metals directly, you can buy physical precious metals, such as minted coins or bars, and then store them in a safe deposit box. However, this type of possession entails a risk of theft or loss and sometimes high storage and insurance costs. Other popular methods include buying futures contracts for a specific metal or buying shares of publicly traded companies engaged in the exploration or production of precious metals.
However, investors should know that physical precious metals do not yield interest or returns. However, investors can benefit from a possible price increase, which, for example, is Gold and silver (in dollars) +56% over the past five years fraud.
