Precious Metals

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Dictionary Says

Definition of 'Precious Metals'

A classification of metals that are considered to be rare and/or have a high economic value. The higher relative values of these metals are driven by various factors including their rarity, uses in industrial processes and use as an investment commodity.

Precious metals include, but are not limited to: gold, silver, platinum, iridium, rhodium and palladium.

Investopedia Says

Investopedia explains 'Precious Metals'

Investing in precious metals can be done either by purchasing the physical asset, or by purchasing futures contracts for the particular metal. Another way to gain investment exposure to precious metals is to purchase shares in publicly traded companies that deal in the exploration or production of precious metals, such as a gold mining company.

Related Definitions

  • Base Metals

    Metals that oxidize, tarnish or corrode relatively easily when exposed to air or moisture. Base metals are widely used in commercial and industrial applications. They are more abundant ...
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  • Bullion

    Gold and silver that is officially recognized as high quality (at least 99.5% pure), and is in the form of bars rather than coins.
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  • Fool's Gold

    Also known as iron pyrite, fool's gold is a gold-colored mineral that is often mistaken for real gold. Fool's gold is also a common term used to describe any item which has been believed ...
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    • Futures Contract

      A contractual agreement, generally made on the trading floor of a futures exchange, to buy or sell a particular commodity or financial instrument at a pre-determined price in the future. ...
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    • Ingot

      A material that has been cast into a shape in order to be transported and processed easier than in an unprocessed form. An ingot is typically rectangular in shape, which allows it to be ...
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    • Iridium

      A corrosive resistant element that is sometimes used to harden platinum.
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    • Palladium

      A metal used in many types of manufacturing processes and is found in electronics and industrial products. Palladium is an element found in the periodic table (atomic number 46), and is ...
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    • Platinum

      A chemical element, precious metal and commodity used primarily in jewelry, electronics and automobiles. Platinum futures are traded through commodities contracts on the New York ...
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    • Silver

      An element commonly used in jewelry, coins, electronics, and photography. Silver has the highest electrical conductivity of any metal.
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    • COMEX

      The primary market for trading metals such as gold, silver, copper and aluminum. Formerly known as the Commodity Exchange Inc., the COMEX merged with the New York Mercantile exchange in ...
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