What Trends Will Have the Biggest Effect on Precious Metal Prices in the Next Five Years?
The words of a classic rock song by Bob Dylan tell us, “The times they are a-changing.”
They really apply if you invest in platinum scrap, gold scrap and silver scrap. Here are some trends that will cause major changes for precious metal investors in the next five years.
Tesla Cars
Okay, we could just as easily have mentioned other electric cars too – the Lucids, Polestars, Nissan Leafs, Chevy Bolts and others. But we think there is no doubt that Tesla is leading the charge toward having a larger and larger percentage of the cars on our road be electric.
We see this trend having two major effects that will change the world of precious metals.
The metals that are used in electric car batteries. Many people already are seeing lithium, which is used in the batteries that power electric cars, as a precious metal. We couldn’t agree more. Even though recyclable lithium is hard to find in big quantities, it is so scarce in nature that it could well take its place alongside gold, silver, and platinum in the hierarchy of sought-after metals to find in scrap form and recycle.
An explosion of car chargers, onboard electric components for cars, and a number of other components. From coast to coast, charging stations are being built for electric cars – and each of those facilities is packed with circuit boards that contain gold, silver, and copper. People who buy electric cars are also installing chargers in their garages and driveways. So lithium and cadmium that are used in batteries are not the only metals that will be in increasing demand because of the Tesla trend. The familiar precious metals we have been trading in for years are also part of it.
An Increasing Demand for Rare Earth Metals for Touch Screens
Have you noticed that more than ever before, people are using touch screens to interact with laptops, tablets, phones, and even more mundane devices like printers, and even home appliances? Whenever you use your finger instead of a mouse (or other physical device) to control an electric device, chances are that its touchscreen contains a rare earth metal like cerium, yttrium, or lanthanum. Look for these metals to become more important as investments in the coming years.
A Boom in Solar Power for Homes
You have driven past fields where hundreds of solar panels have been installed. They’re there so the electricity they make can provide a community’s need for electricity or, in some cases, supply electricity to nearby office complexes or stores.
We are not talking about those installations, but about solar panels that you or I can buy and install on our roofs to help power our homes. It’s interesting to note that the panels themselves will not contain gold or silver in large quantities. Those metals will be found in the circuitry that is connected to them, not to mention in the batteries, thermocouples, thermostats and other devices inside the home. The increase in demand for gold and silver will only increase.
The Boom in Apps and Wi-Fi Enabled Devices
More and more of the devices we use in our homes will be controlled on our phones, all of which will be enabled by Wi-Fi. There are already home security systems, home entertainment systems, appliances, and more. Each of these systems will rely not only on Wi-Fi, but on printed circuit boards.
We are seeing a dramatic increase in the number of printed circuit boards that surround us in our homes, and each of those circuits contains gold.
The Coming Rise of Fuel Cell-Powered Cars
We probably won’t see this trend reach its full growth for another decade. But the growing interest in vehicles that are powered by fuel cells is growing. As it does, hydrogen delivery systems will increase – we could soon see hydrogen filling facilities appear in gas stations and electric recharging stations from coast to coast. And all of those facilities will contain circuitry that contains gold and silver.
An Uptick in the Uses of Platinum in Medicines and Medical Technologies
With every year, we see an increasing use of platinum in medications that are used to fight cancer and other diseases. We encourage you to watch this trend and to turn your attention to investing in platinum and platinum scrap.
Where Should You Invest in Precious Metals Now?
As we publish this post, the smartest investment strategy is to continue to invest in gold scrap, silver scrap, and platinum scrap.
As you collect these materials, call our precious metal refinery at 800-426-2344. We are here to offer advice on making these wise investments and to help you turn your recyclable scrap into cash.