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Precious metal

physical science Maturity 11-13 Next article →

Precious metals are rare, naturally occurring metallic elements with high economic value.

Edelmetalle
Edelmetalle

Many of these elements are categorized as noble metals. This classification means they are more corrosion resistant than most other elements. They are also less chemically reactive. Most precious metals possess a high lustre and are quite ductile. Ductility allows these metals to be stretched or hammered into different shapes. While they were once vital as currency, they are now used mainly as industrial raw materials and investments.

GoldNuggetUSGOV
GoldNuggetUSGOV

When these metals are held in bulk form, they are called bullion. Bullion is not valued by a face value like paper money. Instead, it is valued by its mass and its level of purity. To reach high levels of purity, metals must undergo refining processes. Achieving 100% purity is nearly impossible because it becomes harder to remove every tiny impurity. Most mass-produced bullion reaches a "three nines" purity, or 99.9%. The Canadian Gold Maple Leaf series is even purer, reaching up to 99.999%.

Johnson Matthey 500 grammes silver bullion
Johnson Matthey 500 grammes silver bullion

Many nations mint bullion coins that serve two different purposes. These coins are often issued as legal tender, meaning they have a nominal face value. However, the actual value of the metal inside is usually much higher. For example, a Canadian Gold Maple Leaf has a face value of $50. As of January 2022, it contained one troy ounce of gold, which is 31.1035 grams. Some coins, like the British Sovereign, do not show their purity on the face. Yet, they are recognized for having a consistent composition.

1000oz.silver.bullion.bar.top
1000oz.silver.bullion.bar.top

History shows that the status of a precious metal can change over time. A metal is deemed precious if it is rare. If new ore sources are found, the value might drop. If mining or refining processes improve, the value might also diminish. Aluminum is a famous example of this change. In the late 1800s, aluminum was considered a precious metal. It was very difficult to extract from non-metallic ores. At that time, pure aluminum was more valuable than gold.

Price of gold
Price of gold

Napoleon III even gave aluminum cutlery to his most important guests.

By the late 1800s, the cost of aluminum began to fall rapidly. The invention of the Hall–Héroult process in 1886 helped cause this drop. Commercial electric generation in 1882 also played a role. Eventually, aluminum became a common metal rather than a precious one. In contrast, other metals like gold and silver have maintained their status. Investors often use the gold-to-silver ratio to assess relative value. This ratio measures how many ounces of silver are needed to buy one ounce of gold.

Rhodium daily Price 1992-2022
Rhodium daily Price 1992-2022

Some countries produce massive coins that demonstrate incredible wealth. The Australian Gold Nugget coin contains one full kilogram of 99.9% pure gold. In 2012, the Perth Mint created a 1-tonne gold coin. This coin had a gold value of approximately $50 million AUD. Austria also minted a large coin in 2004. The Vienna Philharmonic Coin contains 31 kg of gold and has a face value of 100,000 euro. In 2007, the Royal Canadian Mint made a 100 kg gold coin. This was a stunt to publicize their 99.999% purity levels.

Philharmoniker 99 front
Philharmoniker 99 front

Beyond jewelry, precious metals are essential for modern technology. Platinum group metals, or PGMs, include ruthenium, rhodium, palladium, osmium, iridium, and platinum. Platinum and palladium are key catalysts in catalytic converters. These devices help reduce emissions from vehicles. Platinum group metals have also been used to produce nitric and sulfuric acid for centuries. Gold is used in nanotechnology and oxidation reactions because of its stability.

2005 AEPlat Proof Obv
2005 AEPlat Proof Obv

Scientists also use gold and silver nanoparticles in solar cells and biosensors. These applications show how precious metals support sustainable technology.

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File:GoldNuggetUSGOV.jpg
GoldNuggetUSGOV.jpg
File:Edelmetalle.jpg
Edelmetalle.jpg
File:1000oz.silver.bullion.bar.top.jpg
1000oz.silver.bullion.bar.top.jpg
File:Johnson Matthey 500 grammes silver bullion.jpg
Johnson Matthey 500 grammes silver bullion.jpg
File:Philharmoniker 99 front.jpg
Philharmoniker 99 front.jpg
File:2005 AEPlat Proof Obv.png
2005 AEPlat Proof Obv.png
Rhodium daily Price 1992-2022.webp
Price of gold.webp
Palladium Prices.webp
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