Why Are Gold, Silver And Platinum Called Precious Metals?
Why are gold, silver, and platinum called precious metals? Read here to find out why these commodities are called precious metals!
As the value of the US dollar continues to decline against foreign currency, many savvy investors choose to invest by purchasing precious metals such as gold, silver, and platinum. These precious metals are traded through public commodity exchanges, which have been increasing their value as of late. This article discusses why gold, silver, and platinum are called precious metals.
Rarity and Naturally Occurring
The first reason why gold, silver, and platinum are called precious metals is because they are rare and naturally occurring elements. Chemically speaking, a precious metal cannot be radioactive and they often have higher melting points than other natural elements. The fact that they are naturally occurring and cannot be replicated makes precious metals much more valuable than other natural elements. These precious elements are often used in jewelry and certain types of art.
Precious Metals are Valuable
Another reason why gold, silver, and platinum are called precious metals is because of their high value. Since gold, silver, and platinum are all naturally occurring and rare, they can be quite valuable. Platinum is the most expensive of all three, but gold and silver each hold a high level of value. The value of the precious metals is further enhanced if the metal is pure. The most valuable precious metals are over 99.99% pure. 100% purity is not obtainable.
Precious Metals are Exchanged on an Open Market
Another reason why gold, silver, and platinum are often called precious metals is because they are traded through open markets. Since gold has a value which is tied to various forms of currency, many investors choose to purchase gold, silver, or platinum to offset the expenses associated with inflation or currency devaluation.
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