Hidden Wealth: Inside the Precious Metals Market

Author

Philip Saparov
October 22, 2024

In partnership with

Greetings, curious mind of wealth and wonder!

In this edition, we dive deep into the shimmering world of precious metals. We’ll trace their journey from mines deep within the earth to the markets where they become the backbone of industries, luxury, and investment.

We'll also uncover some surprising and fascinating facts about these metals along the way. Let’s dive right in!

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Gold has been a symbol of wealth and power for over 5,000 years, but did you know that almost all the gold ever mined still exists today?

This is because gold doesn’t corrode, making it possible to melt down and reuse gold from ancient civilizations. In fact, the gold in your wedding ring could be made from the same metal used by the pharaohs of Egypt!

Beyond its appeal for jewelry and investment, gold is also used in electronics, not only because it is a good conductor of electricity, but more importantly because of its exceptional resistance to corrosion and tarnish. It’s also used in satellites, space suits, and even astronauts’ helmets to protect against solar radiation.

As far as the top three gold-producing countries, they are China, Australia, and Russia. China leads with approximately 330 metric tons of annual production, primarily from its eastern provinces. Australia follows closely, producing around 315 metric tons, largely from mines in Western Australia.

Russia ranks third, with about 300 metric tons annually, much of it coming from its rich mineral reserves in Siberia. These three nations together represent a significant portion of the world's gold supply.

Gold is currently priced around $1,900 per ounce, reflecting its role as a stable investment during economic uncertainty.

Silver’s versatility stretches beyond jewelry and tableware. It has unique antibacterial properties, which have been used since ancient times to prevent infections—ancient Greeks even stored water in silver vessels to keep it fresh.

Today, silver nanoparticles are used in medical equipment and even in bandages to fight infections. Interestingly, silver is also critical to the future of renewable energy; it’s a key component in solar panels, where it improves the efficiency of converting sunlight into electricity. Even the global demand for silver has surged because of its role in green technology.

The top three silver-producing countries are Mexico, China, and Peru. Mexico leads the world with an annual production of approximately 6,300 metric tons, with silver mining being a key industry in states like Zacatecas and Chihuahua. China follows, producing around 3,600 metric tons, with much of its silver being a byproduct of mining for other metals.

Peru ranks third, generating roughly 3,100 metric tons, thanks to its rich mining regions in the Andes. Together, these three countries account for a significant portion of global silver output.

Silver trades at approximately $23 per ounce, valued for its industrial applications and investment demand.

While platinum is prized for its rarity and luster in fine jewelry, its role in the automotive industry is even more impressive. Did you know that over 40% of all mined platinum is used in catalytic converters to reduce toxic emissions from vehicles?

Platinum also has incredible resistance to wear and tarnish, which is why it’s often used in medical equipment, particularly in pacemakers and dental tools. In fact, the first heart pacemaker implanted in a human used platinum electrodes because of its durability and bio-compatibility.

Beyond Earth, platinum is even sought for future space missions, as its durability could support future technologies in space exploration.

The top three platinum-producing countries are South Africa, Russia, and Zimbabwe. South Africa dominates the global market, producing around 130 metric tons annually.

Russia follows with approximately 22 metric tons, with most of its production coming from the Norilsk mining complex. Zimbabwe ranks third, producing around 15 metric tons, largely from its Great Dyke region. These three countries together supply the majority of the world’s platinum.

Platinum is priced at around $900 per ounce, with its scarcity and industrial uses driving demand, particularly in the automotive industry.

Palladium might not get the same attention as gold or silver, but this metal is essential for keeping the air we breathe cleaner. About 85% of all palladium ends up in catalytic converters, making it a key player in reducing car emissions.

What’s truly fascinating is palladium’s unique ability to absorb hydrogen, up to 900 times its volume. This makes it an important material for hydrogen storage in the renewable energy sector, where it could play a major role in the development of hydrogen fuel cells.

The top three palladium-producing countries are Russia, South Africa, and Canada. Russia leads by a wide margin, producing approximately 80 metric tons annually, primarily from the Norilsk Nickel mining complex, which accounts for the vast majority of the world's palladium output.

South Africa follows, producing around 70 metric tons, with much of it coming from the same platinum-rich deposits in the Bushveld Complex that yield platinum. Canada ranks third, generating about 17 metric tons, with major production from nickel and copper mines in Ontario.

Palladium commands a high price of around $1,300 per ounce, primarily due to its critical role in catalytic converters for reducing vehicle emissions.

Rhodium is not only one of the rarest metals on the planet, but also one of the most expensive. Its value lies in its remarkable ability to withstand high temperatures and resist corrosion, which makes it indispensable in catalytic converters.

What many people may not know is that rhodium is so rare that more gold is mined in a single year than rhodium has been mined in history. In fact, the world’s annual production of rhodium is less than 30 tons.

The top three rhodium-producing countries are South Africa, Russia, and Zimbabwe. South Africa is by far the largest producer, responsible for over 80% of the world's rhodium production.

Russia ranks second, producing smaller but significant quantities of rhodium as a byproduct of nickel and platinum mining, particularly from the Norilsk Nickel complex.

Zimbabwe takes the third spot, contributing to global production from its Great Dyke region, which also contains platinum and other valuable minerals. These three countries supply nearly all the world's rhodium.

Rhodium is one of the most expensive precious metals, trading at approximately $4,500 per ounce due to its rarity and use in pollution control technologies.

Iridium is one of the most corrosion-resistant metals, making it incredibly useful in harsh environments like space or deep-sea applications. But one of the most fascinating facts about iridium is its connection to dinosaurs.

The layer of iridium-rich clay found in geological deposits around the world led scientists to conclude that a massive asteroid impact wiped out the dinosaurs 66 million years ago. The iridium content in this layer suggests that the asteroid brought the metal from outer space, making iridium not only a crucial industrial material but also a key to understanding Earth’s ancient history.

Iridium’s modern-day uses include high-temperature crucibles, spark plugs, and even in cancer treatment.

The top three iridium-producing countries are South Africa, Russia, and Zimbabwe. South Africa leads global production, accounting for about 80% of the world’s iridium output.

Russia’s iridium comes from the Norilsk Nickel mining complex, where it is extracted as a byproduct of nickel and platinum mining. Zimbabwe ranks third, producing iridium from its Great Dyke region, alongside other platinum group metals.

Iridium trades at about $4,200 per ounce, driven by its high-temperature and corrosion-resistant applications in industries like electronics and aerospace.

Osmium is an incredibly dense and rare metal, so dense that a cubic foot of osmium weighs more than 1,400 pounds! Osmium has a blueish tint and is often used in high-precision scientific instruments and fountain pen tips due to its hardness.

Osmium's toxicity and scarcity make it a material only suitable for niche applications, but it’s highly valued for its durability. It’s also being studied for potential use in cancer treatments, where its compounds could play a role in targeting cancer cells while leaving healthy cells unharmed.

The top three osmium-producing countries are South Africa, Russia, and Zimbabwe (here we are again, right?). These three countries together supply the majority of the world’s osmium, though its production is relatively small due to its niche applications.

Osmium's price is less standardized but typically ranges around $400 to $800 per ounce, reflecting its niche industrial uses.

Ruthenium is a lesser-known precious metal, but its applications in electronics and chemistry are far-reaching. This metal is part of the platinum group and is often used to harden platinum and palladium alloys, improving their durability in industrial applications.

What’s particularly fascinating about ruthenium is its ability to increase the efficiency of chemical reactions, particularly in the refining of crude oil and the production of ammonia for fertilizers.

Ruthenium is also being researched as a potential material for future data storage technology, where it could enable even greater data densities in magnetic storage devices. It may not be as famous as gold or platinum, but ruthenium plays a vital role in advancing both chemistry and technology.

The top three ruthenium-producing countries are South Africa, Russia, and Zimbabwe. As you might have guessed, these three countries dominate global ruthenium production, with South Africa being the primary source.

Ruthenium is priced at around $700 per ounce, with its primary uses in electronics and as a catalyst in chemical reactions.

We conclude this journey through the precious metals spectrum, and we’re reminded of how these rare elements shape our lives—from the jewelry we wear to the cutting-edge technologies and environmental protections we rely on.

Stay tuned for more fascinating insights in future editions. Until next time, keep exploring and stay informed.

Warm regards,

Shane Fulmer