Osmium became interesting as an investment for a wide range of investors thanks to the crystallization process, which was only discovered around 10 years ago. Due to its scarcity and rapid price development in recent years, the element (Os76) is increasingly becoming the focus of investors interested in precious metals as a potential long-term store of value for wealth, similar to gold, for example.
Note: This article is for information purposes only and does not constitute an investment advice.
Is osmium a good investment?
Whether osmium (Os) is a good investment is something that each investor has to decide for themselves. From an objective point of view, there are at least a few points that could make osmium an attractive investment for both private and institutional investors:
- Possible yield potential: osmium as an investment only began its rise a few years ago, when a crystallization process for the precious metal was found. In crystalline form, osmium is traded both on the jewelry market and on the financial market or osmium exchanges. This means that osmium is still a young investment product, but at the same time this may also indicate a possible return potential if the price develops as positively as it has since its first crystallization. Compared to osmium, for example, gold already has a history going back thousands of years, which means that the price has already "settled" to a certain extent.
- Rare precious metal: Osmium is incredibly rare in the earth's crust and is mined together with other platinum metals. The subsequent purification and chemical process, which ultimately results in usable and tradable osmium, is extremely complex. However, as some areas of the economy (for example medicine) demand osmium, its scarcity combined with its benefits make it an interesting investment for many investors.
- Competition for diamonds on the jewelry market: Osmium, as a bluish shimmering metal with other unique properties, is becoming increasingly popular on the jewelry market and is becoming more and more popular with customers. Osmium is used in rings, necklaces, watches and bracelets as it has a unique, crystalline structure that outperforms even diamonds when it comes to sparkle, for example. The increased use of osmium as jewelry, together with the rarity of the precious metal, could drive the price or value of osmium even higher in the future.
Which precious metal (osmium, gold, silver, platinum, ...) is the best investment? What the experts say.
As with all investments, whether in the stock or precious metal market or other financial products, it is only possible to look at the past. It is therefore not easy to describe something as the "best investment" when it comes to future performance. What's more, effective investment depends on the respective investment objectives, the current market environment and other factors such as the economy.
What is clear about osmium, however, is its comparatively recent history. The precious metals gold, silver and platinum, which are popular with both private and institutional investors, can look back on a very long history of active trading among investors. However, the role of osmium in investment only goes back a little under 10 years. This circumstance ensures that the prices of the better-known precious metals such as gold, silver and platinum have found their fair price among investors over time, but this process could still be pending for osmium. Investing in tangible assets (which includes precious metals) is primarily - as the name suggests - about preserving value. Like any investment, osmium is of course also associated with risks. There is no such thing as a risk-free investment. This also applies, for example, to bonds issued by Western countries, which are often touted as "safe investments". In the precious metals sector osmium has a high potential yield upside the more osmium becomes established in the economy and among investors. In any case, the performance to date (2013 - 2023) has been extremely pleasing for investors.
When will osmium be traded on the stock exchange?
Osmium as a precious metal is already actively traded as crystal, bars, cubes, disks and other forms. As far as the trading of so-called "osmium shares" is concerned, osmium can already be traded on the stock exchange or the financial market, albeit indirectly so far. This is because osmium is mined as a by-product of other metals. These metals primarily include platinum, but also palladium and nickel. As there are - to the best of our current knowledge - no listed companies that are primarily involved in the production or processing of osmium, investors can resort to shares in companies that specialize in the mining and processing of platinum, for example. Such companies are mostly to be found in South Africa, as there are a particularly large number of such mines there.
Osmium investment: How does the precious metal osmium behave in a recession?
As osmium is a young tangible asset osmium has not yet "experienced" a recession or economic crisis. The behavior of osmium in a recession is therefore still unclear. However, osmium has already been through other crises that have had a strong impact on the economy. These include the global coronavirus pandemic, the war in Ukraine, supply chain delays in Asia and - particularly in Europe - high inflation. If we date the start of these crises to March 2020 (outbreak of the coronavirus pandemic), the price of osmium rose by around 53% between then and September 2023, from around EUR 833 to EUR 1275. Even if this is not a classic recession, osmium has proven to be surprisingly stable as an investment in all these crises and has even seen massive price gains.
Where can you buy osmium as a tangible asset and investment?
For long-term investments, the precious metal osmium is preferred by most investors in the form of osmium crystals or osmium bars. However, both forms should only be purchased from certified dealers such as MetaMetals. This way, investors can be sure that the element (Os) is a high-quality product that meets strict quality standards, has a guaranteed purity of over 99% and is non-toxic osmium.
On the other hand, private investors are strongly advised against buying raw osmium as an investment, as it can form toxic gas (OsO4) and in this form is far removed from osmium as an investment and is therefore not tradable in this market.
Storing osmium as a store of value: vault, safe, bank, ...
By definition, a store of value is designed for longer periods of time. Accordingly, the storage location plays an important role for investors. Basically, the storage of osmium after purchase is an individual matter and depends, among other things, on the total value of the precious metal investment as well as the personal need for security. It is generally advisable to store larger quantities of osmium in a vault or safe. Alternatively, an existing safe deposit box at a bank can be a good solution for many private investors. Smaller quantities of osmium can also be stored in hard-to-reach places in your own house or apartment. Each osmium precious metal storage option comes with individual advantages and disadvantages, so it is not possible to make a general recommendation here.
Disclaimer: These materials are for general information purposes only and are not investment advice or a recommendation or solicitation to buy, sell or hold any asset or to engage in any specific trading strategy. Some products and markets like cryptocurrencies, NFTs and others may be unregulated in some countries, and you may not be protected by government compensation and/or regulatory protection schemes. The unpredictable nature of the markets can lead to loss of funds.