Why Past Trends Predict a Bright Future for Investing in Precious Metals
From Blackberry to iPhone and Beyond . . .
Scientists and lay people (otherwise known as “the men and women in the street”) love to predict the death of precious metals. They like to believe that gold, silver and platinum will lose value because they will be replaced by other materials and other chemicals in a lot of devices and applications.
One example? Scientists have been trying to develop a substance that can replace platinum in hydrogen fuel cells. It makes sense to try. Platinum is expensive and if some cheaper compound can be used that will work as a catalyst like platinum does, that could make fuel cell-powered cars cheaper.
To quote from “Finding a suitable platinum substitute for fuel cells,” an article that Jared Sagoff wrote for the Argonne National Library:
“Scientists have been searching for low-cost catalysts to replace platinum in attempts to make fuel cells more affordable to the public. In a new study led by Argonne National Laboratory chemist Di-Jia Liu, researchers have identified a new way to synthesize inexpensive, transition metal-based catalysts as an alternative to platinum.”
Okay, fair enough. But that article was published back in 2014. And as far as we know, nobody has yet developed a cheap, bargain-basement-priced substance that can replace platinum in fuel cells.
People will keep on looking. But we expect that all the naysayers who are predicting that demand for platinum is about to plummet will be proven wrong.
A Bit of Historical Perspective
Here are only a small selection of the times when changing technology has failed to diminish the demand for precious metals.
The shift from Blackberries and personal digital assistants (PDAs) to smartphones did not decrease the demand for gold or silver. In fact, the demand for gold has increased by a factor of four or five because of cellphones, according to most estimates.
The transition from desktop computers to laptops has not decreased the demand for gold. The demand for gold has actually increased because three, four or more laptops can be found in many American households.
The shift from film to digital photography, which is one of the biggest changes ever to hit consumer products, might have reduced the demand for silver. But it has not decreased the demand for gold, which is used in the printed circuit boards that are used in digital cameras and in smartphones, which have become the cameras of choice for most amateur shutterbugs.
The transition for CDs and DVDs to streaming media has not affected the demand for precious metals even though this has been a major, transformative trend. Although CD and DVD players are now only being made in small numbers, the numbers of computers and tablets has risen. Why? Because if you are streaming videos or music, you need to stream it on some kind of device.
So, Plan to Keep Investing in Precious Metals
We remain bullish about investing in gold scrap, silver scrap and platinum scrap too. The demand for those metals is sure to remain strong.
How can you get the most financial return from the scrap you have collected, or plan to collect? The first step is to call our precious metal refiners at 800-426-2344. Let’s make a plan. Specialty Metals Smelters and Refiners is here for you.