It is believed that the first instance of man using metal was around the year 9,000 BCE. 11,000 years later, and the use of metals continues to increase around the world. The list of uses for different metals is almost endless, and there is always money to be made. Having a proper understanding of the differences between these metals and what they are used for can be incredibly beneficial. Among the most common are industrial metals.
If you want to know all the essentials about industrial metals, keep reading.
1. What Are Industrial Metals?
Industrial metals are quite simply any metals that are used for industrial purposes. These applications can include construction, vehicle production, plumbing, etc.
Industrial metals are usually plentiful. As such are relatively inexpensive in comparison to other metals.
Generally, metals that oxidize or corrode easily are put into this category and are sometimes called base metals.
2. The Most Common Industrial Metals
Among industrial metals, copper is the one that has been used the longest. Other common metals are nickel, aluminum, tin, lead, zinc, and iron/steel.
There are some metals that are sometimes considered industrial metals, but some would also put them in other categories. Silver and gold for example both have industrial applications. Due to their value, however, many people would instead consider them to be precious metals.
There are many other industrial metals, such as manganese, gallium, and cadmium. These are far less common in industrial use but still fall into the category.
3. The Main Uses of Industrial Metals
There are many uses for the different types of industrial metals. Here are some typical examples:
Iron
The most widely used metal on the planet. Iron is used in various different construction applications. This includes buildings, bridges, machinery, and tools.
Iron is also used to create steel.
Steel
Steel is an iron alloy with small amounts of carbon. There are four main types of steel:
- Stainless steel
- Carbon steel
- Tool steel
- Alloy steel
Stainless steel is more corrosion/rust resistant than other types of steel. Commonly used for sculptures/monuments, aircraft, airport roofs, surgical equipment, and bridges.
Carbon steel only contains iron and carbon, with no other alloying elements. Depending on the amount of carbon the uses of this steel vary. Some typical applications include buildings, bridges, fences, gates, cutting tools, vehicles, and high-strength wire.
Tools steel is, as the name suggests, used for making tools (cutting, stamping, shearing, etc.). As tool steel is resistant to deformation and wear it makes it very suitable for this task.
Alloy steel is often used for heating elements, piping, and corrosion-resistant containers.
Copper
Copper is an excellent conductor of heat and electricity. Because of this, it is widely used for wiring in all sorts of electrical appliances. Copper is also present in wiring, motors, telecommunications links, and heating/cooling systems.
Aluminum
This is the most abundant metal on Earth (the third most abundant mineral after oxygen and silicon). Aluminum is very durable, yet lightweight.
It is often used in power lines, ships, aircraft, spacecraft, cars, window frames, and buildings.
4. Other Types of Metals
Precious Metals
These are metals that have high luster and high melting points. Generally softer than other metals and often not as reactive. Precious metals are also quite rare, leading to them being more expensive.
Precious metals include:
- Silver
- Gold
- Platinum
- Palladium
Some typical uses of these include jewelry, coins, are, and electronics.
Rare Earth Metals
There are 17 elements that fall into this category, such as promethium, cerium, and scandium. Despite the name, these metals are not generally considered to be particularly rare.
They are often used in many electronic devices such as DVDs, cell phones, batteries, and cameras.
5. The Industrial Metal Market
The basic materials sector is a broad one. It is made up of companies that partake in the acquisition, development, and processing of raw materials.
It works on a basis of supply and demand, alongside consumer goods. If demand for a product goes up, so too does the demand for the raw materials used to make it.
The housing market can have a similar effect. More housing means more raw materials needed for construction.
There are over 300 index funds, mutual funs, and exchange-traded funds that invest in this sector.
6. Stocks to Look Out for in Q4 2021
Staying on top of changes in the market is essential. After 2020 and the pandemic many markets have had issues, and industrial metals are no different.
There are a huge number of stocks out there dealing with all kinds of materials. Among metals, silver is one to keep an eye on.
In the investment world, it is widely considered an industrial metal before a precious metal. Some notable stocks to look out for are below.
Best value stocks:
- Fortuna Silver Mines Inc.
- Silvercorp Metals Inc.
- Pan American Silver Corp.
Fastest growing stocks:
- Pan American Silver Corp.
- First Majestic Silver Corp.
- Fortuna Silver Mines Inc.
Stocks with the most momentum:
- Endeavor Silver Corp.
- MAG Silver Corp.
- First Majestic Silver Corp.
- iShares Russell 1000 ETF
- Global X Silver Miners ETF
Looking at recent trends in the market following COVID-19, it seems there is a good chance the price of COMEX silver could be due for a huge surge. For the details take a look at this article.
Should You Invest in Industrial Metals?
Investing can be a complicated and daunting challenge. It is also not without risk.
If you do want to make any investments, it is crucial you have an understanding of the market before putting any money in, including when investing in industrial metals.
There is a lot to learn, and at The Wizard Journal we keep up to date with all the latest news.
Check out some of our other blog posts if you’re ready to learn more!
