Many people don’t think about investing in platinum because it wasn’t used as a currency like gold or silver. It is precious metal with a higher value of silver, so there are still many investors thinking that it will make them a profit. Nowadays platinum is a broadly used but very rare industrial metal. It can be found in a wide range of purposes including the glass manufacturing industries, automotive, dental, jewelry, medical, and electrical.
The demand is becoming larger but there aren’t enough resources. There was a big drop in the price many years ago, but after a certain amount of time, the price of every precious metal will rise relative to its quantity. There are many ways of getting platinum, but most popular are platinum coins whicharen’t used for trading until the 19th century.
What is Platinum?
Before you start investing you should what you are investing in. Platinum is a precious metal that has a grayish white color which is very similar to silver, so take care when someone says an item is made out of Platinum.
The name is from a Spanish word which means small silver. You can find it in many parts of the world put usually it is collected in Columbia, Africa, United States, and the Urals. It can be found in other metals like iridium, palladium, osmium, and others. It is among the rarest precious metals and the world production is about 9 million ounces.
Reasons to Invest
One of the main reasons you should invest in Platinum is the limited source of supply. We are maybe finding new places for producing it, but that means the supply is becoming lower. It is much rarer than silver and gold that are currently most traded precious metals. From Russia and South Africa comes 90% of the global platinum. Not only it is short in supply, but it is also very difficult to get a pure ounce of it.
They would call you crazy in the 19th century if you said that Platinum will be more expensive than gold. But, now we can see a growing demand for it in investment and industrial spheres. It is essential for manufacturing 20% of all consumer goods.
Scientists are figuring out many ways to use Platinum because it is resistant to corrosion, it has high durability, high melting point, and electrical conductivity.When you compare the price from past years you can determine how much it will grow in upcoming years. These years it has performed great and went from $400 in the 2000s to $1300 in 2009.Click here to read more.
Investing in Physical Platinum
Many professional investors are doing it without owing any material they have invested in. It is similar like what banks are doing, most of the money is just a number on the computer, but physically they don’t have it. This shouldn’t be done with precious metal like Platinum.
There are more products you can buy that are out of silver or gold, but still, try to get platinum products. One of the most available items is bars which are usually found in smaller gram sizes because of the cost. The second one you can buy is coins from the United States Mint. There are many Platinum coins besides US Eagle like Chinese Pandas and Australian Koala coins. It doesn’t matter which one you get because there aren’t chances of platinum becoming a currency.
Like investing in gold or silver through coins, the same goes for platinum. They are very easy to store, hold, and buy, they are easily recognized which means you can sell them easily or trade. There are many offers you can find online that get their coins from Royal Canadian Mint or U.S. Mint. The Platinum American Eagle is one-ounce9995 fineness with a value around $100.
You can’t make a mistake when buying because it has Lady Liberty printed on it and an eagle. There is also the purity and weight for each coin printed on it. There is a guarantee for every Platinum Eagle from the US Mint. The Canadian type has the same fineness but the value is around $50. You will notice Queen Elizabeth II and the maple leaf which is Canada’s national symbol.