Metals

A metal is a material (an element, compound, or alloy) that is typically hard when in the solid state, opaque, shiny, and has good electrical and thermal conductivity.

Metals are typically grouped into one of two categories:

 

 

Precious Metals:

Precious Metals are rare, naturally occurring metallic elements with high economic value. They serve two purposes, as industrial elements and investments. Manufacturers use these metals to make electronic components, jewelry, dental equipment and catalytic converters among other things. Investors, on the other hand, collect coins and bars made out of precious metals. This second use – as investments – makes precious metals the objects of intense speculation in commodity markets. Precious metals traders see these commodities as a form of money that holds its value better than printed paper money.

 

Gold is the main precious metal utilized by speculators as an investment vehicle. Although manufacturers use the metal in some electronics parts, the vast majority of gold demand derives from jewelry manufacturers and traders. Many consumers see gold jewelry as a form of investment.

Silver Manufacturers also use silver in both electronics and jewelry, while traders collect the metal in the form of coins or bars. Silver has historically traded at a fraction of the price of gold. Some traders track and trade the spread between gold and silver prices.

 

 

Base Metals:

Base metals are used in a whole range of industrial and commercial applications including construction and manufacturing. Their widespread use in everyday items makes them essential commodities in global markets.