Precious metals – examples, applications, and investments

Precious metals have fascinated jewelers, collectors, and investors for centuries. Gold is the best-known representative of this group, but it is not the only one. Less obvious metals are also gaining in importance, surprising with their value and investment potential.

Table of contents

• Precious metals – examples, applications, and investments
• What are precious metals?
• Which elements are classified as precious metals?
• Properties of precious metals and their use in jewelry
• Why is it worth investing in precious metals?
• Differences between precious metals and semi-precious metals
• How to invest in precious metals?
• Investment coins and other forms of capital investment
• The benefits of holding precious metals in your investment portfolio
• Factors affecting the value of precious metals

What are precious metals?

Precious metals are a group of non-ferrous metals distinguished by their exceptional chemical resistance and low reactivity. These characteristics make them resistant to corrosion and weathering. They occur in their native state, i.e., in pure form, without the need for complex chemical processing.

They are distinguished by their positive standard potential, which further emphasizes their chemical stability. The best-known examples are gold, silver, and platinum.

Which elements are classified as precious metals?

In the classical sense, seven elements are classified as precious metals:

• gold (Au),
• silver (Ag),
• platinum (Pt),
• palladium (Pd),
• iridium (Ir),
• ruthenium (Ru),
• osm (Os).

Each of these metals has unique chemical and physical properties that make them widely used in jewelry, industry, electronics, and technology.

Properties of precious metals and their use in jewelry

Precious metals are distinguished by:

• high purity,
• durability,
• corrosion resistance,
• low chemical reactivity.

In jewelry, they are used to make rings, bracelets, necklaces, and earrings. Gold is valued for its malleability and intense luster, silver for its conductivity and bright shine, and platinum for its strength and resistance to wear.

Precious metals retain their properties even with intensive use, thanks to which jewelry made from them remains durable and aesthetic for many years.

Why is it worth investing in precious metals?

Precious metals are attractive investment assets. They are distinguished by:

• value stability,
• inflation resistance,
• protection against market fluctuations.

The most popular investment metals are gold, silver, platinum, and palladium. Investors value them for their ability to diversify portfolios, high liquidity, and a wide range of purchase options:

• bars,
• bullion coins,
• investment certificates.

These products are available on regulated markets, which ensures transaction security.

Differences between precious metals and semi-precious metals

Precious metals are distinguished by their low reactivity and high investment value. In comparison, semi-precious metals have greater variability in their chemical composition, are more susceptible to corrosion, and have a lower market value.

How to invest in precious metals?

Safe investing in precious metals requires following a few rules:

• purchase from reliable suppliers,
• selection of certified products,
• use of offers from accredited institutions.

The most popular forms of investment are:

• bars of various weights,
• bullion coins,
• certificates confirming authenticity.

Investment coins and other forms of capital investment

Bullion coins, such as Krugerrands, Vienna Philharmonics, or Canadian Maple Leafs, are the most common choice among investors.

Collectible coins combine the value of precious metals with artistic uniqueness, while investment bars allow for flexible portfolio building in terms of investment value.

The benefits of holding precious metals in your investment portfolio

Precious metals:

• reduce investment risk by 10-15%,
• protect against inflation,
• provide stability in times of economic uncertainty.

Adding gold, silver, or platinum to your investment portfolio increases its flexibility and helps you respond better to changing economic conditions.

Factors affecting the value of precious metals

The value of precious metals is influenced by:

• purity of raw material,
• melting point,
• chemical stability,
• the global economic situation.

During periods of crisis, the value of precious metals usually rises, making them an effective tool for securing capital.