![]() Rare Metal, But not a Precious Oneīismuth and tellurium are two examples of extremely rare metals that do not have high prices. Napoleon III’s most important guests used cutlery made of aluminum, while those less important used those made of silver. In 1855, during Exposition Universelle, bars of aluminum were exhibited alongside the French crown jewels. That made it extremely valuable, at one point even more valuable than gold. Although it can be very easily found in many places, in the past its excavation was extremely difficult and expensive. Will this time really be different? Precious Metal that Became a Common MetalĪluminum is an example of a precious metal that became a common metal. There were many attempts to put such a standard in place in the past – each time these attempts ultimately failed (in a hyperinflationary way in most cases). Please note that fiat (unbacked by precious metals) money is not a new phenomenon in the world’s monetary history. In November 1983 the Isle of Man, and in the second half of 1988 Australia and Canada, issued platinum legal tender bullion coins. It used to serve as legal tender in 19th century Russia, where coins “from pure Ural platinum” were minted. The least known metal that has monetary history is platinum. The United States stopped minting silver coins in 1969. With the beginning of the gold standard, silver coins dropped out of circulation. The decrease in silver’s value could have led to a decrease in currency value, and ultimately to economic downturn. In the 19th century the silver standard was very popular around the world, however, after the discovery of large deposits of silver in America, many countries turned to the gold standard. The name pound sterling comes from the fact that it initially represented one troy ounce of silver. The other precious metal with a rich monetary history is silver. The last country to abandon the gold standard system was Switzerland – gold backed 40% of the value of the Swiss franc until 1999, when Switzerland decided to join the IMF. Over time the gold standard has been replaced by fiat currency. At the beginning of World War I the world moved to a fractional gold standard and then, after the Bretton Woods Agreement of 1944, to a convertible currency system. With the decline of gold mining and the fast growth of 20th century economies, gold’s share in the markets decreased. This was done in two ways, either by issuance of coins and bars or by issuance of banknotes (much later) and other paper instruments backed by gold or silver reserves (such as in the gold standard). They were used as a medium of exchange for thousands of years. Gold and silver have a very long monetary history. They can also be an excellent vehicle for investment or speculation purposes. They are used to store value and to hedge against inflation or economic downturn. Gold and silver, apart from their economic or industrial use, can also play an economic role. They dissolve only in a substance called the royal water. ![]() They are corrosion-proof, they don’t react with water or steam and they don’t dissolve in the vast majority of acids. ![]() On the other hand, if demand for it rises, the price can rise. If new sources of a precious metal are discovered, we can expect its price to drop. Of these, platinum is the one most commonly used. Other precious metals include ruthenium, rhodium, palladium, osmium, iridium and platinum. They are both very useful in industry, but their popularity is mainly due to their use in arts, jewelry and coinage. The best known precious metals are gold and silver. ![]() Now they are an investment or industrial commodity. ![]() In the past, precious metals served as a currency. A precious metal is defined as a rare, naturally occurring chemical element that has high economic value and is chemically resistant. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |