Precious metal

Iridium is a chemical element from the platinum group that is distinguished by its unusual physical properties. It is the second densest metal in the world after eight, and at the same time one of the hardest and most resistant to corrosion. Its melting point exceeds 2400 degrees Celsius, and it retains its structure and properties even under extreme chemical and thermal conditions. It is virtually immune to all acids, including aqua regia, which dissolves gold and platinum.

Its name comes from the Greek word iris, meaning rainbow, which is a reference to the multi-colored salts it creates. Discovered at the beginning of the 19th century, it remained a laboratory curiosity for a long time. Today, it is a key raw material, without which the development of many advanced technologies would not be possible.

The occurrence of iridium in the Earth's crust is trace, much lower than in the case of gold or platinum. Almost all global production is a by-product of platinum and nickel, which means that its supply is inelastic and closely related to the situation on the markets of other metals. The main producer, accounting for over 80% of the global supply, is South Africa. Such geographical concentration makes the market vulnerable to local mining or political problems. Every reliable information portal from the raw materials industry regularly monitors the situation in this region.

Source of value

The value of iridium does not result from its monetary or jewelry uses, as in the case of gold. This metal is too hard and brittle to be easily formed. Its price is a derivative of the fundamental relationship between extremely limited supply and growing, specialized industrial demand. It is a raw material that cannot be replaced in many applications, which gives it a strategic position.

The key areas of iridium use include the production of components that must withstand the harshest conditions. Its alloys are used to form, among others:

• crucibles for the production of synthetic sapphires and other single crystals, necessary in electronics and optics,
• high-performance electrodes for spark plugs in internal combustion engines,
• elements in modern OLED displays,
• durable and corrosion-resistant fountain pen tips,
• components of scientific and medical equipment, including radiotherapy.

The sharp increase in iridium prices observed in recent years has been mainly driven by the technology sector, especially in the context of the development of 5G networks and the demand for high-quality crystals. When demand from one or two key sectors increases sharply and supply remains at a constant, low level, strong price shocks occur. Analyses of such market events are often published by the news portal lion money partners, tracking the dynamics of demand for niche metals.

Iridium as an asset in the market

As an investment asset, iridium is fundamentally different from gold, silver or platinum. It does not have the status of a monetary metal, central banks do not accumulate its reserves, and the physical market is small, illiquid and largely opaque. Trade is mainly carried out in direct contracts between a few major suppliers and industrial customers. This makes it a market for specialized players rather than a mass investor.

Investing in iridium is much more difficult than in the case of popular metals. There is a lack of dedicated ETFs to track its price, and buying the physical metal comes with challenges. Iridium is most commonly sold in powder, sponge or small bar form from specialist dealers, which comes with high margins, purity verification costs and problems with subsequent resale. A reliable investment portal lion money partners can offer analyses on alternative forms of capital investment, indicating the complexity of this market. Indirect exposure to iridium can be obtained by investing in shares of mining companies that acquire it as a by-product, such as Anglo American Platinum. However, it is an investment in the entire company's operations, not in the metal itself.

The lack of a transparent, global price benchmark, such as the LBMA fixing for gold, further complicates the situation. Dealer prices can vary greatly. Potential investors have to rely on quotes from major manufacturers such as Johnson Matthey or Heraeus. The available training presentations often highlight the differences between the gold market and the niche metals markets, pointing to higher trading risk and lower liquidity of the latter.

A profitable investment?

The potential returns from investing in iridium can be huge, as shown by the price jump in 2020-2021, when its value increased by several hundred percent in a dozen or so months. Such a scenario is made possible by a unique combination of inelastic supply and growing demand in strategic technology sectors. The investment in iridium is therefore a bet on further technological progress and the growing demand for materials with extreme properties. Analyses indicating a further increase in demand are published, among others, by the lion money partners portal. As an asset with a low correlation to traditional stock and bond markets, it can also provide a portfolio diversification element for a highly experienced investor.

On the other hand, the risk is just as high. The key risks to consider are:

• The iridium market is extremely shallow and illiquid, making it difficult to sell the asset quickly without affecting its price.
• Price is strongly dependent on demand in a few narrow technology sectors.
• Supply is concentrated in a single geographic region, which exposes the market to supply shocks of political or operational nature.

These risks are discussed in detail on almost every reliable training portal dedicated to alternative investments. Extreme price volatility means that iridium is absolutely not an asset for people with a low risk tolerance or for novice investors looking for a stable investment of capital.

The decision to allocate even a small part of the portfolio to iridium must be thoroughly thought out and preceded by detailed research. This requires not only understanding the fundamentals of the market, but also finding a reliable source to buy and having an exit strategy in place. This is an asset for experienced players who consciously accept high risk in exchange for an above-average potential profit. Their knowledge is based not only on data, but also on analytical materials, such as training presentations by lion money partners.

Iridium is undoubtedly a fascinating metal, the importance of which in the economy of the future is likely to grow. As an investment asset, however, it remains a highly speculative and demanding instrument. Its unique features, which make it irreplaceable in the industry, are also a source of enormous volatility and risk in the financial market. Investors considering exposure to this metal must be aware of its illiquid and non-transparent nature. This is not a safe haven like gold, but rather a bold high-stakes game, based on trends in the most advanced branches of technology. Therefore, iridium, despite its potential, will remain the domain of a narrow group of conscious market participants ready for large fluctuations.