Platinum is also a precious metal. It is available in coins, bars, and ingots. Platinum finds use in jewelry, usually as a 90-95% alloy, due to its inertness and shine. In watchmaking, many companies use platinum for producing their limited edition watch series. Watchmakers highly appreciate the unique properties of platinum as it neither tarnishes nor wears out. The price of platinum, like other industrial commodities, is more volatile than that of gold. In recent year the price of platinum ranged from $774 to $2,252 per oz.
During periods of sustained economic stability and growth, the price of platinum tends to be as much as twice the price of gold, whereas during periods of economic uncertainty, the price of platinum tends to decrease due to reduced industrial demand, falling below the price of gold. Gold prices are more stable in slow economic times, as gold is considered a safe haven and gold demand is not driven by industrial uses. In the 18th century, platinum’s rarity made King Louis XV of France declare it the only metal fit for a king.
Why Invest in Platinum
Platinum has unique chemical and physical properties that make it essential in a wide range of industrial and environmental applications. And yet, it is also considered one of the finest of all jewelry metal. Over 20% of all consumer goods either contain platinum, or use it as an integral part of their production.
Platinum is the most rare of the precious metals. Roughly 90% of all platinum supplies come from South Africa and Russia. Virtually all of the platinum mined in South Africa is pre-sold to industrial users. Approximately 8 tons of raw ore must be mined to produce just one pure ounce of platinum. Today, the finest and most elegant jewelry contains platinum. Investment platinum is available in the form of bullion products that are produced using platinum. As a consequence, the continued expansion of advanced and developing economies has caused demand for the metal to grow at a faster pace than it is being mined.
Platinum bullion coins are a popular and convenient way to make an investment in platinum. The coins are easy to buy, easy to hold and store, easy to divide, widely recognized and thus, easy to sell and trade.
