8 Most expensive precious metals in the market
Publicēšanas laiks - 2022.01.13
The value of the global precious metals market reached $261.62 billion in 2020. Most people are perfectly aware of metals like silver and gold. However, the interest in more rare and valuable metals increased significantly during recent years.
Just not too long ago
platinum price was the highest of precious metals in the world. Since the COVID-19 pandemic took over, a rapid increase in the rhodium price shook up the precious metal market.
In 2016 rhodium price was around $600. However, in 2021 March the price of the metal skyrocketed to $29000 an ounce and later on stabilized at $12000 by 2022.
So what are the reasons behind the value rise in different precious metals? Various reasons cause metal prices to fluctuate: from technological discoveries, complications within mining to complicated economic situations.
US president Thomas Jefferson spoke about the leverage of precious metals already centuries ago: “We are overdone with banking institutions, which have banished the precious metals, and substituted a more fluctuating and unsafe medium…”
In this article, we overview the eight most expensive precious metals and dive deeper into the reasons behind their value.
Silver
Metal price: 23.31Є/oz
Even though gold overshadows
silver in terms of popularity, many investors value silver for its applications in various industries. Silver especially receives a lot of attention from market experts for its susceptibility to speculation. Already thousands of years ago silver already become an important part of the trade. Here is a couple of interesting facts about silver:
- Silver reflects light the best amongst precious metals. Silver products feature an outstanding gloss. Refined silver reflects 95% of visible light. For this reason, mirror manufacturers tend to cover the products with silver. On top of that its usability is prominent in telescope, microscope and solar panel manufacturing.
- Silver is one of the first discovered precious metals. The oldest items that contain silver are around 6000 years old! Ancient Greeks were the first to use silver as a currency by trading with silver bars. In the meanwhile, ancient Egyptians valued silver more than gold.
- Mexico is the country that produces the most silver. This country in 2019 produced 3600 tons of silver. Which is about 360 tons less than in 2018, since employee strikes and blockades influence the production. Also, Peru has the biggest silver reserve in the world - 120 000 metric tons.
Osmium
Metal price: 400Є/oz
Osmium is one of the densest precious metals in the world. This blueish white, shiny, hard metal becomes brittle at high temperatures. It derives from the family of platinum metals that melt in extreme temperatures. What is special about osmium?
- Pure osmium is a very toxic material that can cause an unexpected reaction. Direct contact with osmium causes blindness. Also, it has the capability to severely damage kidneys and liver.
- Due to its hard consistency osmium is suitable for the production of screws, phonograph needles and electronic contacts. Osmium and iridium alloy is found at the tip of a fountain pen. Moreover, tetroxide that comes from osmium helps to identify fingerprints
- Osmium is one of the rarest stable elements on earth. Miners discover this metal only with nickel and copper alloys. The melting point of osmium is 3033 °C.
Ruthenium
Metal price: 506Є/oz
Ruthenium is a hard, brittle and silver-like metal that belongs to the precious metal family. The best characteristic of ruthenium is its long-lasting shine. However, this metal is susceptible to oxidation which can cause an explosive reaction. More about ruthenium:
- Ruthenium is one of the best hardeners for palladium and platinum alloy. The combination of these metals creates an exceptional wear resistance.
- Ruthenium is the latest metal from platinum family metals. This metal group contains ruthenium, rhodium, osmium, iridium and platinum. They contain similar physical and chemical properties and are often discovered within the same mineral deposits.
- Ruthenium appears along with other platinum metals in the Ural mountains, North America and South America. Ruthenium can also be extracted from radioactive waste.
Platinum
Metal price: 854.93Є/oz
Platinum is a dense, stable and rare precious metal that is often found in jewellery. This metal draws the eye for its silver-like appearance. Also, the demand for platinum rises for its applicability in various industries like medicine, electronics and chemical. Here are more interesting facts about the metal:
- Over 50% of the demand rises from the production of catalytic converters. This part of the car significantly reduces the toxic gas emission. Platinum and other platinum family metals hardly react with oxygen which is an essential characteristic for mitigating toxic gas emissions.
- The oldest objects that contain platinum are dated to 700 B. C. However, French physicist P.F. Chabenneau was the first to discover malleable platinum in 1789 m. He used platinum for a goblet that he presented to Pope Pius VI. Platinum requires many complicated chemical processes. For this reason, the emergence of platinum was way later than gold or silver.
- The creation of pure platinum requires a lot of work and resources. There is about 7 to 12 tons of ore to extract one troy ounce (31.135 g.) which can take up to 6 months. The ore is processed into a powder that contains roughly 1% of platinum. Then electrical smelters heat up the powder at 1500° where platinum saturates from the ore by blowing air.
Gold
Metal price: 1595.62Є/oz
Throughout centuries merchants valued
gold as a universal currency all around the world. During modern times gold is still associated with luxury, prestige and maintains leverage against other currencies. Gold remains an inseparable part of our societies for various reasons:
- Gold is the only metal that features a yellowish hue or “golden” colour. Whereas other metals acquire such colour only as a byproduct of oxidation or reaction with other metals.
- Gold is a very elastic metal. One ounce of gold (approx. 28.34 g.) can stretch up to 5 miles (8 kilometres) of golden thread. For this reason, gold is quite prominent in the sewing industry.
- Despite its applicability as a currency and symbolic value, the demand for gold rises in many other different industries. Gold is used in electronics, medical, automotive, defence and aerospace industries. It also works as a catalyst in many industrial processes.
Palladium
Metal price: 1676Є/oz
Shiny and silver-like metal, Palladium grants a specific shade for “white-gold” and dominates the fuel industry. This metal was discovered in 1803 and named after the asteroid. It pertains to the family of the platinum metal group and is rarer than gold and silver. Why is Palladium so valuable?
- Palladium is a very malleable metal that has a lovely light colour and doesn’t cause any allergic or health hazards. For this reason, the demand for Palladium significantly increased in jewellery. Another valuable characteristic of this metal is its oxidation resistance. Such a trait is very important in the production of catalytic converters.
- This metal is very hard, resistant to scratches and relatively light. Rings made of Palladium make it a better choice than Platinum rings as they weigh 40% less. It is more comfortable to wear for longer periods of time.
- Palladium absorbs hydrogen very efficiently. That is why palladium storages are very suitable for filtering and storing.
Iridium
Metal price: 3655Є/oz
Why is the price of iridium so high? Iridium is the most corrosion-resistant metal in all of the periodic table elements. Also, it holds the title of the densest metal. The member of the platinum group has a white colour with a golden hue.
- Acids, bases and other strong chemicals do not react with this metal. Which very well suits products that must not react with other external substances.
- Even though iridium contains toxic features, this metal works well in the medical industry. The radioactive isotope of iridium is used in prostate cancer therapy and radiotherapy for breast cancer.
- One of the most prominent functions of iridium is Platinum hardening. Between 2009 and 2010 the demand for Iridium grew by four times for its applicability in electronics and the production of high-quality crystals.
Rhodium
Metal price: 12551Є/oz
The most expensive and valuable metal in the world is Rhodium. The name originates from the Greek word “rhodon” which means rose. The association originates from the colour of rhodium’s salt that resembles roses. At the moment by far rhodium price exceeds the price of silver or gold. Not too long ago Rhodium became the most expensive precious metal in the world for the following reasons:
- Rhodium has the features of Platinum group metals: extraordinary resistance to corrosion, excellent catalyst that melts in high temperatures, not toxic and extremely durable.
- Rhodium became significantly more expensive due to the fact that it is one of the rarest metals from the platinum group. The probability of finding this metal occurs up to one part per 200 million in the Earth’s crust.
- Raw rhodium is rarely used and is most often found in alloys. The biggest demand for rhodium appears to be in catalytic converter production. These parts help to significantly mitigate toxic gas emitted by cars. Moreover, Swiss scientists discovered a process that utilizes solar energy to turn carbon dioxide and water into high-quality fuel. Rhodium and cerium oxide are catalysts of this reaction. This was a great discovery in the solar energy industry as it offers an efficient way to produce hydrogen.
Conclusion
Quite frankly gold and silver are some of the most popular metals. However industrial development causes an undeniable increase in demand for other precious metals too.
For investors, it is good news. Rare precious metals like shiny palladium and silver-like platinum coins and bars create opportunities to profit. Rhodium price jump brought a bigger return of investment than anyone could expect.
When looking for opportunities to expand your investment portfolio precious metals are worth considering. Such investment acts as great leverage for complicated economic situations and it’s quite possible that the value of precious metals can skyrocket.
Which precious metal shall skyrocket in value next?
Each precious metal has a different nature of price fluctuations. Florinus product assortment allows you to dive into the world of precious metals - whether you are a beginner or a seasoned investor.
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