The fundamentals of precious metals – a broad introduction
to the basic principles

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Information about gold, silver, platinum, palladium and other elements

The designation of particular metallic substances as precious metals is due to their unique resistance to corrosion. Gold and silver in particular owe their use for jewellery, and for coins as a medium of exchange, since ancient times to this renowned stability. In the periodic table of the elements, a total of eight metals are classified as belonging to the category of noble metals. Gold, silver, platinum and palladium in particular are of crucial importance for world markets. While gold is considered a pure luxury product with a high value density, silver and platinum metals are also used in many industrial sectors. In addition, trading in precious metals has been a successful part of the investment sector for more than 70 years.

Looking at this particular category, our extensive collection of articles will inform you about the basics of precious metals. Find out where they are extracted and processed, the formats in which they are traded, and why they are so often recommended as investment products. You can also read interesting facts about the history of various gold standards, how precious metal prices are determined, and how their values can be calculated and compared. Click on each link to find out more about the respective topic:

Precious metals: industrial commodities and investment products

The most well-known precious metals include gold and silver. However, platinum metals and copper also play important roles from the point of view of investors and industrial users. Due to their high value density and their limited occurrence in the earth’s crust, physical precious metals are often recommended as a store of value, and for diversifying investment capital. Coins, bars and granules are used for this purpose.

Gold and Switzerland

Although Switzerland also has its own natural gold deposits, the country plays a more important role in the international gold trade as the world’s largest gold importer. Some of the busiest refineries operate here. This also includes Zurich as a major stock exchange and global financial centre. Investors can buy gold in Switzerland and store it safely.

Precious metal refineries: from raw material to product

Gold, silver and other ores are mined in China, Australia, USA, South Africa and Mexico. They are further processed in large precious metal refineries. Five of the most important refining companies in the world are located in Switzerland. In addition to jewellery and the automotive industry, investment products and medical devices are the most important areas where precious metals are used.

Gold: A high value density precious metal rendered in bars and coins

An estimated 200,000 tons of gold have been mined by human hands – a quantity still in existence. It is still mined today in China, Australia, Russia, Canada and the USA. Nevertheless, five of the largest European gold refineries are located in Switzerland. Widespread forms of gold investments include gold bars, and gold coins such as Krugerrands, Nuggets or Kangaroos, and Chinese Pandas.

Buy gold in Switzerland

Gold is characterized by its high value density and its reassuring properties as a store of value and crisis metal. Gold coins, gold bars or gold granules are all suitable investment products. Investors can purchase this precious metal direct from specialist Swiss retailers and should pay careful attention to its authenticity and fineness rating. Privately run, bank-independent storage companies such as Swiss Gold Safe are recommended for gold storage.

Silver: Occurrence, extraction and professional storage

In its coin format, silver is one of the oldest methods of payment in the world. But where are the largest silver deposits on earth, and how are they extracted? In addition to gold products, this particular white metal is now the most important form of investment. Private investors also value silver coins and bars for wealth accumulation, and for crisis protection. What are the advantages and disadvantages of silver investment products?

Platinum: Obtained via complex refining

Platinum is characterized by its high material density and has exceptional corrosion resistance. Thus, it is mainly used in the automotive industry, but also in jewellery making and medical devices, and of course as a popular investment product due to its value density. The major deposits of pure platinum are found in South Africa. It is also obtained as a by-product of copper and nickel mining.

Palladium: A raw material for the car industry

The grey precious metal palladium is one of the platinum metals and is now a coveted raw material for the automotive industry. It trades at higher prices than gold. Palladium production takes place mainly in Russia and South Africa. As an investment product, palladium is considered more of an exotic product with a limited selection of options. The best-known palladium coin for investors is the Maple Leaf from Canada.

Rare Earths: Commodities or Investment Products?

The rare earths of the periodic table are mainly extracted from the earth’s crust in China, the USA or Australia. Their main areas of application are automotive engineering, wind energy and other high-tech environments. Strategic metals such as dysprosium, neodymium, praseodymium or terbium are also suitable as investment products. However, professional storage is important for their value retention.

Crypto assets and their use

Cryptocurrencies are a welcome alternative to other investment products. But what is the substance behind digital money, how can it be used, and what advantages and disadvantages does it offer? Our post discusses the most common crypto assets and how to acquire them. We also highlight the important differences between bitcoin, altcoin and fiat money.

Gold-Silver Ratio: The value ratio of precious metals

The gold to silver ratio compares the price of gold to the price of silver. This value determines how many ounces of silver it takes to purchase a single ounce of gold. Investors can thus see at a glance whether the white metal is overvalued or undervalued. This article sheds light on the historical development of this metric and shows how the calculation works, using examples. A sub-theme is bimetallism, which refers to times when the exchange rate between gold and silver was fixed.

Stock-to-Flow Ratio: The Valuation of Gold

The stock-to-flow ratio calculates the ratio of raw materials already mined to their current annual production. It is used, for example, to value gold, because simply looking at its supply and demand is not a transparent means of assessing the value of this yellow metal. Gold is almost indestructible, but the cost of production is increasing. Also read how gold compares to the crypto asset Bitcoin.

London Bullion Market Association (LBMA)

The price of gold, silver and other precious metals is set daily on the international London Bullion Market – also known as the gold fixing (gold fix) or silver fixing (silver fix). In addition, the London Bullion Market Association (LBMA) defines the standard for Good Delivery bars, which guarantees consistent precious metal quality. This same organisation also lists all LBMA-certified bar manufacturers.

Comex: The trading platform for gold futures

Comex is short for Commodities Exchange and is the largest marketplace for commodity futures trading. This article explains the connection with futures contracts and the importance of the First Notice Day. It describes the requirements for the delivery of qualified and registered gold, and among other things, explains the difference between the spot market and the futures market.

What is the significance of the precious metal premium for investors?

The current market price of precious metals can be transparently tracked via the stock exchange. But anyone wishing to purchase bars or coins made from gold or silver will soon discover that sales prices are often significantly higher. What influences the premium element? What effect does the trading margin have? And is the usage of the term ‘spread’ entirely consistent?

The gold standard: its meaning, history and development

This article provides you with a comprehensive analysis of the different stages of the development of the international monetary system. Learn about the historic importance of gold and silver coins, and what systems were in place in Europe and around the world at different times. The fiat standard has been in use since 1971 – and national currencies have not been backed by gold since then.

The Latin Monetary Union: The silver-gold bimetallic standard

In 1865, some European countries founded the Latin Monetary Union – a bimetallic silver-gold standard designed to unify different national currencies. The denominations and the gold and silver content were thus identical. As a result, world trade and tourism flourished. However, the fixed exchange ratio between gold and silver proved to be complicated.

Encyclopedia – Automated safe deposit systems

You can use an automated safe deposit box to securely store important documents, precious metals, watches and artworks. Such systems are flexible and generally accessible 24 hours a day, 365 days a year. However, as several recent incidents have demonstrated, this kind of facility appears to be much more prone to theft.

Are safe deposit boxes still physically secure?

Documents and material assets are much more secure in a safe deposit box than kept within your own four walls. But what about the physical security of a bank safe deposit box facility? Yet with reports of burglaries accumulating, are the customer storage arrangements offered by precious metal dealers any better? What is the essential difference between these options and the safe deposit box facilities offered by specialist storage providers?

Swiss Mint: Switzerland’s official mint

The Swiss Mint is more than just a mint, it’s a part of Swiss history and culture. Find out some interesting facts about its history and functions, and learn about some interesting coins this mint has created. The Swiss have even secured two unique “Guinness World Records”.

Good Delivery Bars: Quality-assured precious-metal

Find out what Good Delivery Bars represent, who certifies them, and why such bars are almost ideal for national banks, ETFs etc., yet unsuitable for private investors.

Carat vs. Fineness: Understanding gold purity

Carat and fineness are both units of measurement for gold. However, one of these is gradually losing its importance – especially as regards gold coins and bullion bars.

Heraeus Germany: From pharmacy to a precious-metals group

The German technology group Heraeus Precious Metals was founded in 1660 as a pharmacy and, over the course of almost 400 years, has evolved from a small family business to become one of the world’s largest precious metal refineries and a global leader in industrial precious metal trading. The group’s product range extends from gold, silver and platinum bullion bars through to semi-processed products for jewellery and dentistry, and to supplying comprehensive industrial requirements.

Metalor: the first LBMA-approved Swiss refinery

The roots of this precious metal refinery go right back to 1852, when preparatory rolling mills were set up in the Swiss canton of Neuchâtel to create intermediate products for watchmakers. Today, this global player defines itself via four separate business sectors: refining, advanced coatings, electrotechnics, and research and development. Its LBMA-certified gold bars are valued worldwide.

PAMP: The brand for high-quality precious metal bars

Since its inception in 1977, the Swiss company PAMP has rapidly acquired a reputation as a manufacturer of high-quality bars made from gold, silver, platinum and palladium. Its Geneva refinery trades cast and minted bars on all major gold markets throughout the world. In addition to wholesale bars and end-customer products, the refinery also supplies products for well-known international mints.

Umicore Belgium: Material technologies and recycling group

The Belgian precious metal refinery Umicore was founded in 1805. Starting out as a zinc factory, this global group now almost exclusively processes recycled raw materials and specialises in the sustainable recovery of precious metals and other special materials. In addition to high-quality bullion bars made of gold, silver, platinum and palladium, this technology group also produces semi-processed products destined for numerous industrial sectors.

Valcambi is the world’s largest precious metals refinery

With an annual production volume of more than 2,000 tons, the Swiss refinery Valcambi is the largest precious metal processing company in the world. In terms of area and capacity, this Ticino-based enterprise is a match for any of the foremost refineries around the globe. Valcambi produces precious metal bars made from gold, silver, platinum and palladium in accordance with LBMA standards, as well as other products required for industrial applications.

Precious metal markings: Hallmarks & stamps

Material assets made from gold, silver, platinum or palladium are all used to preserve and secure asset wealth. Thus, precious metal bars and coins, genuine pieces of jewellery and expensive wristwatches are all marked to clearly determine their value. They carry stamps and identifying symbols which are provided to supply information about the quality of the material and how the item was produced. However, investors and collectors must be very watchful to ensure they do not end up buying extremely convincing counterfeit goods.

The importance of the troy ounce for precious metals

The common denomination of one troy ounce allows different precious metal products to be directly compared. The ounce is also used for bars and coins, which has many advantages for precious metal trading. In addition, the standard ounce is used to determine the price of gold across international trading platforms.

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The fundamentals of precious metals – a broad introduction to the basic principles

Information about gold, silver, platinum, palladium and other elements

The fundamentals of precious metals – a broad introduction
to the basic principles