The infographic below is a quick overview of precious metals. Precious metals currently include metals such as: gold, silver, platinum, palladium, and titanium. Gold is probably the most popular on this list, seconded by silver. Both gold and silver have long been investment instruments, and have a rich history of being used for art, money, and more throughout human history. Platinum and palladium are two newer investment metals, but also fetch a high price (currently much higher than silver). Surprisingly, titanium is also considered a precious metal.
Precious metals are so called not only because of their high value, but also because of their rarity, cost of producing, and their industrial uses. Each metal has a number of special characteristics that make them useful for particular tasks. For example, gold and silver are excellent at conducting electricity for electronics, gold is extremely malleable and has a high density which helps with radiation shielding, and thus has often been used for space equipment, while silver is an excellent reflecting metal, and also has antibacterial properties for use in water filters. Gold is extremely resistant to corrosion, and both gold and silver have medical uses. Platinum and palladium have many features as well, but are probably best known for their use in catalytic converters in cars, making toxic fumes less toxic as they exit the vehicle. Titanium is a very light and strong metal, and can be mixed with other metals to form alloys with different properties, that are lightweight, strong, and can withstand extreme temperatures. These alloys are mostly used in the aerospace industry, largely for frames and engines. These precious metals of course have many other uses, some of which you’ll see in the infographic below.
Out of these five precious metals, only two of them have been used as circulating currencies: gold and silver. Fairly recent gold standards in the past have included the Gold Specie Standard, the Gold Exchange Standard, and the Gold Bullion Standard. Both gold and silver (but mostly gold) are also used as national reserves today. The US is commonly believed to have the highest gold reserves at 8,133.5 tonnes (but this is only in regards to known gold reserves), Germany has 3,381 tonnes, and Italy holds 2,451.8 tonnes. These numbers change as time progresses, as countries purchase or sell off their gold reserves. Gold and silver are also extensively used in jewelry, from gold bangles, to crowns, to wedding rings, and more.
Not surprisingly, it’s said that around 80% of the Earth’s gold is still buried underground! Gold can be found on every continent. And as time goes on, we’re bound to keep digging it out of the ground for industrial use and wealth storage for investors.
In today’s digital age, investors now have a new way of investing in gold. Placing gold on the blockchain has been done by a few different companies, including here at DinarDirham with our DinarCoins (4.25 grams of 999.9% pure gold) and our Gold Smart Contracts. Creating a tokenized asset out of gold takes away many of the expenses and inconveniences of owning physical gold, and adds the speed and flexibility of a cryptocurrency, while taking out the high volatility factor often associated with traditional digital currencies. And this same concept can be applied to the other precious metals as well.
Much more awaits you below. Enjoy the infographic, and have a great day.
The DinarDirham team