Global demand for iridium, one of the most valuable metals from the group of rare earth metals, is steadily growing along with prices for it.
Since the beginning of the year, the metal has already risen in price by 131%. However, investing in it is quite difficult as iridium cannot be purchased on the stock exchange or through exchange-traded funds.
Investors have to go directly to producers and buy iridium bullion or repurchase it at a higher price.
So far, iridium has already overtaken bitcoin in terms value growth rates in 2021. At present it costs three times as much as gold - US$6,000 per ounce.
This is one of the rarest precious metals. Its annual production is only 3 tons. It is used in the production of premium spark plugs and in electronics.
As Denis Gorev, Head of Trust Operations at Veles Management, one of Russia’s leading analyst agencies in the field of finance, told in an interview with the Russian BFM business paper, the cost of the metal is growing due to interruptions in supplies last year and high demand at present.
Denis Gorev comments:
“A classic storm has occurred here, when the volume of physical production of metal decreases, plus manufacturers are trying to stock up for future use. This leads to a strong increase in prices, which we are seeing. Since the beginning of the year prices have risen by almost three times. We expect prices will continue to grow along with the demand»
As Gorev has also added there are currently no investment demand in this metal, which is more industrial, being primarily observed from technology companies, since the metal is used in a number of industries.
By: Eugen Gerden