Is neodymium rarer than gold?

Neodymium and gold are both valuable elements, but they are valuable for very different reasons. Gold has been treasured for thousands of years as a precious metal, while neodymium is a critical material in modern technology, especially in high-performance magnets. A common question is whether neodymium is actually rarer than gold. The short answer is no, but the full explanation is more nuanced.

Natural Abundance in the Earth’s Crust

From a geological perspective, neodymium is significantly more abundant than gold.

Neodymium occurs in the Earth’s crust at an average concentration of about 38 parts per million (ppm).

Gold, by comparison, has an average crustal abundance of only 0.003 to 0.004 ppm.

This means neodymium is roughly 10,000 times more abundant than gold in the Earth’s crust. Based purely on natural abundance, gold is far rarer than neodymium.

Why Neodymium Is Still Considered “Rare”

Despite its higher abundance, neodymium is classified as a rare earth element (REE). This classification does not mean it is geologically scarce. Instead, it reflects how rarely it occurs in concentrated, economically viable deposits.

Neodymium is typically found mixed with other rare earth elements in minerals such as bastnäsite and monazite. Separating neodymium from these minerals is technically complex, energy-intensive, and environmentally challenging. As a result, the supply of neodymium is more constrained than its abundance alone would suggest.

Mining and Economic Rarity

Gold has a long-established global mining and refining infrastructure. It can often be extracted directly from ore with relatively well-understood processes.

Neodymium, on the other hand:

Requires complex chemical separation processes

Is often produced as a by-product of mining multiple rare earth elements

Has a supply chain that is highly concentrated geographically, with a large share of production coming from China

Because of these factors, neodymium can be considered economically rarer than gold in certain contexts, even though it is more common in nature.

Market Value Comparison

Gold remains far more expensive by weight than neodymium.

Gold prices are driven by investment demand, jewelry, and its role as a store of value.

Neodymium prices fluctuate based on industrial demand, particularly for neodymium-iron-boron (NdFeB) magnets, which are essential in electric vehicles, wind turbines, and electronics.

While neodymium is critical to modern technology, its price does not reflect extreme geological rarity in the way gold’s price does.

Conclusion

Neodymium is not rarer than gold in terms of natural abundance. Gold is one of the rarest elements in the Earth’s crust, while neodymium is relatively common. However, neodymium’s importance in advanced technologies, combined with difficult extraction and limited supply chains, can make it feel “rare” from an economic and strategic standpoint.

In summary:

Geologically: Gold is much rarer than neodymium

Economically and strategically: Neodymium can be harder to obtain in usable form

Understanding this distinction helps explain why both elements are valuable, but for very different reasons.