Precious Metals And Minerals, What Are They And Why They Matter

Precious Metals and Minerals: Why They Matter and How They Are Traded

From gold jewellery to the copper in your phone, precious metals and minerals play a huge role in our daily lives, often in ways we don’t even notice. These natural resources have been valued for centuries for their beauty, rarity, and usefulness.

But they’re more than just shiny objects or industrial materials; they’re also powerful tools in global trade and investment. Here’s a look at what makes them so valuable and how they move through the world’s markets.

What Are Precious Metals and Minerals?

Precious metals are rare, naturally occurring metals with high economic value. They’re hard to find, don’t corrode easily, and have a wide range of uses — from jewellery to electronics.

Minerals, on the other hand, include all the natural substances we extract from the Earth. Some are metals like copper and nickel, while others are essential materials such as lithium and rare-earth elements used in modern technology.

The Big Names in Precious Metals

Gold

• Why it’s valuable: Gold has symbolised wealth and stability for thousands of years. It’s durable, rust-resistant, and always holds its value.

• Where it’s used: Jewellery, electronics, dentistry, and even as a safety net for investors during uncertain times.

Silver

• Why it’s valuable: Silver is known for its shine and usefulness. It’s more common than gold, but it has more industrial uses.

• Where it’s used: Electronics, solar panels, batteries, and medical tools — as well as coins and jewellery.

Platinum and Palladium

• Why they’re valuable: These metals are even rarer than gold and silver.

• Where they’re used: In car parts that reduce pollution (catalytic converters), jewellery, and fuel cell technology.

Essential Minerals You Should Know

Copper

Used in electrical wiring, plumbing, and renewable energy systems, copper is essential to modern life. It’s often called the “metal of the future” because demand rises as we use more electricity and clean energy.

Lithium

This light metal powers the batteries in electric cars, smartphones, and laptops. As the world moves toward renewable energy, lithium demand is booming.

Rare Earth Elements

Despite their name, these elements aren’t actually rare — but they’re tricky to mine and process. They’re used in wind turbines, smartphones, and even military technology.

Iron Ore and Nickel

Both are used to make steel, which forms the backbone of buildings, cars, bridges, and countless everyday products.

How Metals and Minerals Are Traded

There are two main ways these materials are traded around the world:

1. Physical Markets

This is the buying and selling of actual metals — like gold bars, silver coins, or bulk shipments of minerals. Prices are based on what the market is willing to pay at that moment (called the spot price).

2. Futures Markets

Most trading takes place through major exchanges such as the London Metal Exchange (LME) or COMEX in New York.
Here, traders buy and sell contracts that lock in a price for the future.

• Companies use these contracts to protect themselves from price swings.

• Investors use them to try to profit from price changes.

People can also invest in metals through exchange-traded funds (ETFs), mining company stocks, or even collectable coins.

Why Do People Trade Precious Metals and Minerals?

1. To Protect Their Wealth, metals like gold and silver often hold their value when stock markets or currencies fall. That’s why they’re seen as a “haven” in uncertain times.

2. For Industrial Needs, many of these materials are essential to manufacturing, construction, and technology — making them vital to global progress.

3. For Investment Opportunities, investors trade metals and minerals to diversify their portfolios and capitalise on price movements.

Looking Ahead

As the world becomes more connected and more focused on clean energy, specific materials —especially lithium, copper, and rare earth elements — are becoming even more critical. At the same time, gold and silver continue to serve as reliable stores of value.

In many ways, precious metals and minerals are the foundation of both our past and our future. They’ve built civilisations, powered innovation, and remain key to the technologies that will shape the world ahead.