Precious metal 180211 226053156 2008-07-16T16:51:50Z Bart Versieck 57614 Minor fixes {{redirect|Bullion|the town in France|Bullion, Yvelines}} {{for|uses of the word '''bouillon'''|bouillon (disambiguation)}} {{for|the CSI episode of the same name|Precious Metal (CSI episode)}} [[Image:GoldNuggetUSGOV.jpg|thumb|230px|A gold nugget]] A '''precious metal''' is a rare [[metal]]lic [[chemical element]] of high [[economics|economic]] value. Chemically, the precious metals are less [[reactivity|reactive]] than most elements, have high [[lustre (mineralogy)|luster]], are softer or more [[ductility|ductile]], and have higher [[melting point]]s than other metals. Historically, precious metals were important as [[currency]], but are now regarded mainly as investment and industrial [[commodity|commodities]]. [[Gold]], [[silver]], [[platinum]] and [[palladium]] each have an [[ISO 4217]] currency code. The best-known precious metals are gold and silver. While both have industrial uses, they are better known for their uses in [[art]], [[jewellery]] and [[currency|coinage]]. Other precious metals include the [[platinum group]] metals: [[ruthenium]], [[rhodium]], palladium, [[osmium]], [[iridium]] and platinum, of which platinum is the most widely traded. [[Rhenium]] is a precious metal that is not part of the platinum group or one of the traditional precious metals.{{Fact|date=June 2008}} The demand for precious metals is driven not only by their practical use, but also by their role as investments and a [[store of value]]. Palladium, as of [[January 29]], [[2008]], is valued at $388 [[United States dollar|USD]] per [[troy ounce]], which is less than half the price of gold, at $995 USD/ounce. Platinum's price of $2,032 USD/ounce is more than twice that of gold. Rhodium is usually the most expensive of the precious metals, over 4.5 times more expensive than platinum, with a current price of $7,150. However, the price of rhenium has been fluctuating wildly recently and at the moment it is selling at 342 USD per ounce ($11,000 per kilogram, 32.15 Troy ounces per kilogram, July 2008). Meanwhile, ruthenium is valued at $525 USD per ounce and silver has fluctuated as well lately, trading at $16.69 USD/ounce. Silver is substantially less expensive than all of the other precious metals, presently less than 1/50 the price of gold, but is often traditionally considered a precious metal for its role in coinage and jewellery.<ref>http://www.taxfreegold.co.uk/preciousmetalpricesusdollars.html</ref> With precious metal prices on the rise [[precious metals refining|recyling precious metals]] has become more and more attractive. ==Bullion== [[Image:Johnson Matthey 500 grammes silver bullion.jpg|thumb|A 500 gram silver bullion bar produced by [[Johnson Matthey]]]] [[Image:Platinum eagle.jpg|thumb|130px|right|[[American Platinum Eagle]] bullion coin]] [[Image:Gold ingots.jpg|thumb|right|150px|[[Gold bar]]s from the [[Sveriges Riksbank|Bank of Sweden]]]] A metal is deemed to be ''precious'' if it is rare. The discovery of new sources of ore or improvements in mining or refining processes may cause the value of a precious metal to diminish, as in the example of [[aluminium]], which was considered a precious metal before the development of the [[Hall-Héroult process]] made it possible to extract aluminium on a large scale. The status of a "precious" metal can also be determined by high [[demand]] or [[market value]]. Precious metals in bulk form are known as ''bullion'', and are traded on [[commodity market]]s. Bullion metals may be cast into [[ingot]]s, or minted into [[coin]]s. The defining attribute of bullion is that it is valued by its mass and purity rather than by a [[face value]] as [[money]]. Many nations mint [[bullion coin]]s, of which the most famous is probably the gold [[South Africa]]n [[Krugerrand]]. Although nominally issued as [[legal tender]], these coins' face value as currency is far below that of their value as bullion. For instance, [[Canada]] mints a [[gold coin|gold bullion coin]] (the [[Canadian Gold Maple Leaf|Gold Maple Leaf]]) at a face value of $50 containing one troy ounce (31.1035 g) of gold &mdash; as of [[September 2007]], this coin is worth about $737 as bullion. Bullion coins' minting by national governments gives them some [[numismatism|numismatic]] value in addition to their bullion value, as well as certifying their purity. The level of purity varies from issue to issue. 99.9% purity is common. The purest mass-produced bullion coins are in the Canadian Gold Maple Leaf series, which go up to 99.999% purity. Note that a 100% pure bullion is not possible, as absolute purity in extracted and refined metals can only be [[asymptote|asymptotically]] approached. Usually a bullion coin contains a stated quantity (such as one troy ounce) of the slightly-impure [[alloy]]; the [[Krugerrand]] is unusual in containing one troy ounce of actual gold, with the impurity making the coin heavier than one ounce. One of the largest bullion coins in the world is the 10,000 dollar [[Australian Gold Nugget]] coin minted in [[Australia]] which consists of a full kilogram of 99.9% pure gold. There have been a small number of larger bullion coins, but they are impractical to handle and not produced in mass quantities. [[China]] has produced coins in very limited quantities (less than 20 pieces minted) that exceed 260 troy ounces (8 kg) of gold. [[Austria]] has minted a coin containing 31 kg of gold (the [[Euro gold and silver commemorative coins (Austria)#Vienna Philharmonic Coin|Vienna Philharmonic Coin]] minted in [[2004]] with a face value of 100,000 euro). As a stunt to publicise the 99.999% pure one-ounce Canadian Gold Maple Leaf series, in 2007 the [[Royal Canadian Mint]] made a 100 kg 99.999% gold coin, with a face value of [[Canadian dollar|$]] 1 million, and now manufactures them to order, but at a substantial premium over the market value of the gold. [[Gold as an investment|Gold]] and [[silver as an investment|silver]] are often seen as [[hedge (finance)|hedges]] against both [[inflation]] and economic downturn. [[Silver coin]]s have become popular with collectors due to their relative affordability, and unlike most gold and platinum issues which are valued based upon the markets, silver issues are more often valued as collectables, far higher than their actual bullion value. ==Precious metal status== An interesting case of a precious metal that is now common is that of [[aluminium]]. Although aluminium is one of the most commonly occurring elements on Earth, it was initially found to be exceedingly difficult to extract from its various [[ore]]s. This made the little available pure aluminium which had been discovered (or refined at great expense) more valuable than gold. Bars of aluminium were exhibited alongside the [[France|French]] [[crown jewels]] at the [[Exposition Universelle (1855)|Exposition Universelle of 1855]], and [[Napoleon III of France|Napoleon III]] was said to have reserved a set of aluminium dinner plates for his most honored guests. Additionally, the pyramidal top to the [[Washington Monument]] is made of pure aluminium. At the time of the monument's construction, aluminium was more expensive than silver, gold, or platinum. Over time, however, the price of the metal has dropped; the invention of the [[Hall-Héroult process]] in 1886 caused the high price of aluminium to permanently collapse. ==See also== * [[Bullion coin]] * [[Gold as an investment]] * [[Silver as an investment]] * [[Palladium as an investment]] * [[Noble metal]] * [[Gemstone]] * [[Hallmark]] * [[Ingot]] * [[Taxation of precious metals]] * [[Troy weight]] ==References== {{reflist}} ==External links== {{Jewellery Materials}} * [http://www.kitco.com/ Current Metal Prices] * [http://ipmi.org/about/index.cfm International Precious Metals Institute] [[Category:Precious metals]] [[bg:Ценен метал]] [[ca:Metall preciós]] <!--[[de:Edelmetall]] --> [[et:Väärismetallid]] [[fr:Métal précieux]] [[ja:貴金属]] [[mk:Драгоцен метал]] [[simple:Precious metal]] [[sr:Племенити метали]] [[zh:貴金屬]]