From gold to copper, including silver and palladium, precious metals, sometimes mistakenly considered Old School by millennials who prefer Bitcoin in good old yellow metal, yet resist well to the wrinkles of age and continue to constitute refuge values in times as uncertain as those we are going through.
But what are we really talking about when we talk about a precious metal? What is its real value over time? And why invest in these seemingly original assets today?
We take you with us on an overview of the precious metals in which to invest in 2020, and you will even see that combining cryptocurrency and precious metal is now possible … we won’t tell you more!
Warning : This article is brought to you by Vera One. Crypto investments are risky by nature, do your own research and invest only within the limits of your financial capacity. This article does not constitute an investment invitation.
Precious metals, kezako?
Osmium, iridium, rhodium, ruthenium, does this list ring a bell? Yet they are all precious metals, valued just like gold, silver, copper or even palladium for their great economic value. These elemental metals, since they are originally extracted from the ground, although more and more recycled today, are also often used as currency and from this angle that you know them the most as well as in jewelry.
In other cases, the metal is considered valuable because it is valued by other uses which make it a rare asset. The best known of these are of course the precious metals resistant to corrosion, i.e. the alteration of the metal by a chemical reaction with the oxide (for those who haven’t done Bac S like me, Jamy in C’est pas Sorcier already had to explain it). These precious metals are thus used in investments, currency and of course jewelry, undoubtedly the form in which they are most recognizable in the eyes of the general public.
Historically, and we already told you about it in a previous article, precious metals were a currency and in the time of Roman times and Croesus, gold and silver were the two most common metals used for making money.
It was from this time that the famous quote came: “To be rich like Croesus”.
Let’s go back: at the time, around -596, the kingdom of Croesus was located in present-day Turkey, and sank a river filled with gold called Le Pactole. During Antiquity, the gold sands of the Pactole allowed the work and trade of gold in very large quantities, you can imagine the “miners” of the time and their “jackpot”.
The legend even tells that Croesus would have made offerings to the Greek temples, Artemis and Ephesus in particular. And we find in these offerings, the modest sum of bricks of pure gold, barrels of silver, or even a statue entirely in gold.
In short, we are back in 2020 and precious metals are still popular!
Why are they so precious?
Precious metals are originally mined directly from the ground and today constitute an important business of various gold companies. We then speak of precious metal because of its scarcity, but, logically, the more discovery you make, the lower the price.
Remember the episodes of the gold rush on the west coast of the United States, the industrial revolution and all the technologies that have made it possible to modernize production chains, today these companies are running at full speed with redesigned. However, Like Bitcoin which does not exist in unlimited quantities, gold is starting to become increasingly scarce, which partly explains its appeal and its value as a reserve and refuge.
Realize the hundreds of uses that our societies make of precious metals: without them, you would not have smartphones, photovoltaic panels, or electronic components, these precious metals have become the alpha and omega of new technologies and renewable energies. Since the 1970s, metals have been consuming exponentially, so there has been a massification of extractions and an explosion in energy consumption linked to greenhouse gases produced by gold activity. Faced with the proliferation of new technologies that consume more precious metals, alternatives are therefore being studied in an attempt to reduce this ecological risk.
First, more and more players are turning to the recycling and reuse of precious metals, thus avoiding the direct extraction of the earth’s crust and the pollution of groundwater by the process of purification and refining of metal. Gold recycling, for example, has been around for decades, although today in France, only 20% of recycled gold is reused gold.
More recently even, France Strategy has committed a thought to study the possibility of imposing a carbon tax on metals, to optimize its use and encourage recycling. All in all, if these metals remain precious, many researchers are trying to explore the possibilities to continue to find gold and precious metals.
Besides, From January 2021, Swiss gold refiners will have to indicate whether the imported gold comes from mining, banking or recycling. A further step towards transparency and the accountability of ecosystem players. I am told in the headset that a blockchain project to make transparent and propel refiners into a new era might be a good idea!
But if precious metals are scarce on Earth, let’s aim higher!
Precious metals and the universe: the new deal?
A mystery still hangs over our scientific friends today: why is there bar gold (abundance) in the universe? As the stock of gold underground declines significantly year after year, numerous astronomical experiments have revealed the massive presence of gold in the universe.
A recent report, published in The Astrophysical Journal thus reveals that the main source of gold present in the universe today, namely collisions between stars and neutrons would not be enough to explain the abundance of gold that hovers above us. The mystery persists!
By the way, that brings me back to you quickly: how did it rain gold on Earth?
This goes back to when planet Earth was still forming: many meteorites that contained gold ended up crashing on earth following collisions, and here are our first gold reserves, a real treasure hunt that men will then undertake in search of the precious yellow metal .
But that’s not enough to explain the current abundance, so you know the scientists they’ve worked out tons of calculations to come up with this theory:
“According to our model, the mass of gold produced in the Universe during its 13.8 billion years is 4 x 10 ^ 42 kg, which is only 10 to 20% of what is awaits observations in meteorites, the Sun and other nearby stars ”.
Chiaki Kobayashi, University of Hertfordshire astronomer
And we also know that there would be “only” 50,000 tonnes of gold left under our soil today, enough to leave a little room for terrestrial exploration before attacking the race for the stars.
The Top 10 Precious Metals Circulating Today to Invest in
If gold marked the spirits this summer in crossing the symbolic $ 2,000 mark the ounce, many precious metals have definite advantages in investing some of your savings in a safe bet. Among all the metals present on this earth, we give you the top 10 precious metals:
- Gold, a precious metal prized in the markets
Durable, malleable, desirable, so many qualifiers that have made the yellow metal famous for centuries. It is elsewhere one of the best-behaved assets during the Covid-19 crisis. One of the most popular options for investment, it is found en masse in South Africa, Australia, China and the United States and is mainly used in the jewelry and industrial sector.
Taking advantage of attractive returns this year, its price has only increased for 5 years :
- Silver, one of the densest metals
With the highest electrical and thermal conductivity and the lowest contact resistance, its value does not sag. Particularly used in turbine engines, but also in electronics, dentistry, jewelry and photography, it is mainly found in Chile, Kazakhstan and the United States. He also benefits from a improved its course for 5 years even if it still has a lot to prove to us since it can be bought today around 20 €:
- Platinum, arguably the most precious of precious
Very malleable, dense and with serious non-corrosive properties, this metal is resistant to a large amount of hydrogen. It is found in armaments, aeronautics, jewelry and its production is concentrated in South Africa, Russia and Canada. Thus combining rarity and functionality, it would be the most valuable of the precious :
- Palladium, a false twin of platinum
Almost comparable to platinum, this very rare metal and prized by the automotive industry in particular which use it for their catalytic converters to reduce emissions or even jewelers to create the famous “white gold”, is mainly found in the same countries. than its false twin. In terms of performance, its price has only increased since the beginning of 2020 due to a deficit market horizon for many economic reasons. It still exceeded € 2,500 at the start of 2020.
As for other precious metals less put in the spotlight, we find:
- Ruthenium who is part of the platinum group
- Rhodium, very rare and very reflective that we find in our mirrors for example
- Iridium, one of the densest and strongest metals
- Osmium, an extremely robust bluish metal
- Rhenium, one of the densest metals, with the third highest melting point
- Indium, a rare metal produced from the processing of zinc ore, as well as lead, iron and copper ores.
As to copper, which is generally cited in the list, it would be wrong to consider it precious because of its particular oxidizable characteristics, but it can be listed as precious metal due to its use as currency.
Investing in precious metals represents diversification and attractive long-term profitability, particularly in times of severe market turbulence.. And even if no investment is safe and we will tell you over and over again, precious metals have proven over time to be safe and solid in the face of the upheavals of our world. The central issue being how to secure their storage, and we will tell you about it right away, focusing on one of the major projects in the sector today which combines the best of both worlds: yellow gold and digital gold.
Focus on tokenized gold, the must have precious metals to have in your wallet
Now that you are an ace of precious metals, I could not conclude this article without telling you about a crazy project that has decided to set up Jean-François Faure who had already tried exercising with Aucoffre.com, Veravalor, Veracash, then the latest addition to the tribe: VeraOne.
The principle is simple, he created a stable token directly backed by physical gold, held by you in your wallet and secured in Switzerland to protect your precious.
After spending more than 10 years in the gold market, our adventurer was not his first try and he thought of everything:
- Gold from mining under the VRO token corresponds to the LBMA label (London Bullion Market Association) and thus helps to ensure that gold mining is carried out with respect for human rights
- 90% of the gold comes from recycled gold at VeraOne and he is committed to continuing to increase this figure to no longer depend on gold activities
- VRO in addition to containing gold is also a crypto currency and you know like me that this is the future of economics! It is therefore transferable in seconds wherever you want.
- It allows you to counter volatility by investing in a modern way in the oldest safe haven in the world
Needless to say, this project is a gem of the industry and allows us to see life in gold!
If you too enjoy learning more about alternative investments, gold, precious metals or even crypto projects serving the oldest safe haven of all time, follow us every week in the platform for alternative investment, the meeting place for novices and professional investors!
Karen is passionate about new technologies in general, and blockchain in particular! Uncovering trendy news, the latest market developments, and the treasures of the ecosystem, she is happy to help you discover this universe in all its colors.