Relevance and economic specificities of precious metals trading

The thesis explores the precious metals market, particularly from the perspective of its relevance in contemporary times. Its objective is to examine the behavior of the market for the most commonly used precious metals – gold, silver, platinum, and palladium – within the historical context and, based on this, to summarize the economic specifics of the metals under consideration.

By utilizing historical indicators of market behavior for the most commonly used precious metals, we will identify four prominent factors influencing economic peculiarities – supply, price, demand, and the economy. We will discuss the conditions and events that have significantly shaped the relevant precious metals market, impacting it in ways that have altered its homogeneity and stability.

For each of the mentioned precious metals, we will recognize the historical reasons that have influenced the acceleration or inhibition of their market activity. We will attempt to determine the degree of correlation between the markets of the four precious metals, if such correlation exists.

Based on the consistent responses of the precious metals market within diverse similar historical circumstances, we will connect the effects of these responses into a set of trends that can, at least loosely, be causally attributed to the precious metals market. We will describe the market’s response to economic crises, specifically during the COVID-19 pandemic.

We will also address the theme of corporate social responsibility, initially outlining it in general terms with criteria from Slovenian and foreign (U.S.) interpretations. Later, we will examine it in the context of the globally successful company Heraeus, which is one of the leading players in the precious metals market.

In conclusion, we will relate our findings to the initial question about the relevance of the precious metals market and define the validity or invalidity of assumed hypotheses. These hypotheses cover aspects such as the profitability of precious metals in relation to a more or less recent temporal framework, price movements in relation to rarity due to mining extraction, and the benefits of buying or selling precious metals during the creation of the thesis.

To enhance the practical applicability of the thesis, we will provide some simple guidelines and warnings for a (potential) investor in precious metals.