What separates precious metals from base metals will help you understand exactly how precious and important the bullion you buy is. Defining the characteristics of precious metals is subject to opinion because no scientific rules clearly define what is and isn’t a precious metal vs. a base metal. We’ll cover both the widely accepted list of precious metals and base metals that are more commonly known, as well as the metals that are debated frequently about where they fall into either group.
Couldn’t any of the elements be used as money? Not really. Theoretically, any of the elements could serve as money. However, there are limitations on which elements can serve as money, and which can’t.
The limitation is divided into four essential parts: scarcity, solidity, non-toxicity, and durability. These limitations eliminate nearly 100 elements from being precious metals. Gases, toxic elements, and base metals fill the rest of the periodic table.
What is a Precious Metal?
Precious metals are classified by their value, scarcity, and resistance to corrosion. Gold, silver, platinum, and palladium are the most commonly known precious metals due to their applications in electronics, medical equipment, and jewelry, as well as the worldwide trade of currency and collectible bullion.
What is a Base Metal?
Base metals are often referred to as society’s building blocks because of their abundance, broad uses, and low value. These materials include copper, zinc, nickel, lead, and tin. They are used to construct buildings, machines, plumbing, and more. While they are durable initially, these metals tend to oxidize and corrode over time, which is one of the separating qualities from precious metals. It is important to note that metals containing iron (ferrous) are not considered base metals. While iron is a base metal, the metals derived from iron, such as steel and cast iron, are not.
Can an Element be Both a Precious and Base Metal?
No, a metal cannot be considered both a precious and a base metal. However, a few metals are widely debated as to which category they belong to.
Did you know aluminum was once included among the precious metals and valued higher than gold despite being the most abundantly found metal in the Earth’s crust? This highly coveted metal shifted to a base metal after the invention of the Hall–Héroult process of smelting aluminum in 1886, which drastically decreased its value and made it more widely accessible.
It is argued that copper is a precious metal, but because of its high melting point, it is commonly associated with the base metal group. By its physics definition, copper is the only non-precious noble metal.
Other metals known as the platinum metals group, including osmium, rhodium, ruthenium, and iridium, typically fall into the precious metals group because they are noble metals. However, some debate whether they should be considered precious metals because they aren’t as in demand or used in as many applications as the four more popular ones are.
Can the Classification of a Metal Change Over Time?
Yes, a metal once considered precious can become a base metal (as with aluminum) and vice versa. The classification is primarily based on its scarcity, market demand, and economic conditions.
