There are a lot of people out there who are probably wondering how much precious metals are there based on their availability and which one of them are the most common, the most abundant. The answer to that question you can probably figure out on your own, it’s silver. Silver is the cheapest precious metals in existence, and that is caused is part by the fact that there’s so much of it available in the ground for extraction, and of course by how much of it has already been extracted.
We mentioned that you can figure out on your own which precious metal would be the most abundant, and the reason why we said that because it’s easily to come to that conclusion when you look at the price of silver and the prices of other precious metals. However the same logic doesn’t apply for every precious metal, and for every metal for that matter, base metals are also included in this paradigm. For example if you take gold, and compare it with one of the metals from the platinum group, palladium, you would think that the availability of palladium is much more higher, because the price of palladium is about half of what the price of gold is.
In reality the situation is much more different, palladium production numbers are a lot lower than those of gold, so you see the same doesn’t always apply when it comes to precious metals, low availability of a certain precious metal isn’t always a guarantee that it will have a very high price, because there are two sides things at play here, supply and demand. If the supply of a certain precious metal is small and demand is also small, then the price for it won’t be high, which is the case with precious metals, but on the opposite end of the spectrum if you have a slightly higher supply of precious metals and an insanely higher amounts of demand for them, their prices will of course be higher, despite of the fact that supply is higher.
Supply and demand go hand in hand, and if you have a good supply on one end, and even better demand on the other, then the price will be high, regardless of the supply size. Same thing goes if you have a low demand and low supply, so you see how it’s not very precise to say that just because something costs a lot, that it automatically means that it’s very rare and that the availability of the commodity isn’t very good.