Precious Metals

Green Energy and Precious Metals

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This article discusses the common question of today which is, just how related are sustainable energy and precious metals? We cover just how connected renewable energy is to the precious metals that you love investing in today. When you think of sustainable energy, what is the first thing that comes to mind?

Is it green-living?

Or, maybe you think of giant wind turbines.

I can guarantee that the first thing you think about with sustainable energy probably won’t be precious metals, although it should be. Sustainable Energy and Precious Metals are deeply interconnected, where the demand for one will directly affect the need for the other. 

So what do sustainable energy and precious metals have to do with each other? Keep reading to find out. 

Sustainable Energy, Gold, and Silver

Gold and silver have been mined for millions of years for a variety of reasons, including money, medicine, jewelry, art, computers, and even magical purposes in ancient times. 

Whether gold and silver are actually magical or not, we don’t know for sure, but gold and silver are both important in the development of solar technology.

Gold is a catalyst for turning solar energy into methanol and methane, while silver helps conduct electrons from sunlight, resulting in energy that can be used immediately or stored later in batteries. 

Silver and gold are also important in the emerging EV (electric vehicle) industry. Since 2019, over 350 EV models have been launched by automakers who are using silver in battery packs and battery management systems and gold is being used for EV circuit boards. 

The London Bullion Market Association, an authority on precious metals, predicts that the demand in the auto industry for silver will likely increase by 246% by the year 2040. Sure, the amount of silver and gold being used from car to car will be small, but the aggregate total would be notable, increasing the value of these metals. 

Sustainable Energy and Other Metals

Aside from silver and gold, platinum and palladium have their uses in sustainable energy. 

Platinum was discovered in 1735, and because of its gorgeous shine and its stellar durability, you will often find platinum in everything from jewelry to dental tools. 

Palladium is the less-lustrous cousin of platinum. It is used in the auto industry where it turns toxic pollutants into less-harmful carbon dioxide and water vapor and is not only used in EVs but in hybrid cars as well.

As scientists continue to study how to shift from fossil fuels to hydrogen-based “fuel”, precious metals like platinum and palladium are becoming more important.

Both metals can be used in hydrogen fuel cells as they are highly conductive, and they make it possible to turn hydrogen into a more powerful and efficient sustainable fuel source. 

Final Thoughts on Green Energy and Precious Metals

The future is definitely uncertain, but you can count on science and technology continuing to work towards a more “green” and sustainable future.

With this demand for newer, better, and “greener” alternatives skyrocketing, so will the demand for the precious metals that are helping many industries to evolve.

Related Article: Precious Metals Sustainability and Responsibility

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MF Metal Team

At MF Metal, we research and analyze retirement investment options for individuals who want to control and protect their financial future. We strongly focus on precious metals and gold IRA accounts.