Types of Precious Metals and Why to Invest in Them

Like other rocks and minerals, precious metals acquire value with rarity and desirability. That's why they make good investments. These are used in art, jewelry, electronics and other fields. The more important ones include gold, silver and palladium. Here's a brief description of some of them:

Gold is found in South Africa, the Alaskan Yukon, California, Canada and in many Russian states. This is a relatively soft metal, heavy and malleable. It is a good conductor of heat and electricity and is insoluble in acid. Long prized as a monetary standard, gold is also used in dentistry and in electronic and scientific instruments.

Silver comes from Norway, Mexico, Chile, Canada, Australia and Colorado. Large blocks originate from Aspen, Colorado but the greatest quantity is taken from Mexico. Like gold, this mineral is fairly soft, heavy and malleable. It is soluble in nitric acid and is another good conductor of heat and electricity. Silver is used in jewelry, chemistry, electronics and in film photography. It is also used by the United States and other countries for currency.

Palladium is a rare and lustrous silvery-white metal that was discovered in 1803 by the English chemist and physicist William Hyde Wollaston. Together with platinum, rhodium, ruthenium, iridium and osmium, palladium is part of a group of elements known as the platinum group metals. These metals have similar chemical properties but palladium has the lowest melting point and is the least dense of these precious metals.

Palladium is found in several electronic devices such as computers, mobile phones, multi-layer ceramic capacitors, component plating, low voltage electrical contacts, and TV sets. It is also used in dentistry, medicine and chemical applications. Palladium plays a key role in creating fuel cells which combine hydrogen and oxygen to produce electricity, heat and water.