Investing in precious metals will provide you a high diversity when it comes to different types of metals that you can choose on the market. The most popular ones are silver and gold, but you can invest in other metals that feature high value.
Even though these two metals are most popular among investors because they were used as currencies back in the day, people are starting to pay attention to platinum coins and see it as a worthy investment.
In case you do not have an idea why should you choose platinum instead of other metals, we decided to present you a guide that will help you along the way:
What Is Platinum?
Platinum is a precious metal that features a grayish-white color, and most people tend to mistake it for silver and white gold.
It comes from Spanish word Platina that translated to small silver, and you can find it naturally in the western United States, Africa, Columbia as well as the Ural Mountains.
In most cases, you will be able to find it in the presence of other metals such as palladium, rhodium, osmium, iridium, and ruthenium, but you can find it also near nickel, silver, gold and copper.
Modern history started in the 18th century, but according to archeologists, people started using it in 700 BC and even before. It was found on the casket of Thebes in Egypt. At the same time, Julius Caesar Scaliger stated and mentioned it in a written document during the 16th century.
He described it as unknown metal that cannot liquefy and burn, which made it perfect for numerous applications. People thought that it does not have value at all and that people used it to counterfeit gold.
However, Antonio de Ulloa, who was a Spanish naval officer, discovered it historically speaking when he was traveling through Peru and Columbia in the 18th century.
During these travels, they have found mines with it and took pieces to Spain. By the end of the century, it became the relevant element.
Today, it is one of the rarest precious metals that you can find on the market since the annual production is only eight million ounces, which is only 10% of annual gold production.
You can check out this website: https://en.wikipedia.org/wiki/Platinum, to understand everything on platinum.
Reasons to Invest In It
Even though most people overlook it due to numerous reasons, we decided to present you the ones that will help you determine whether you should do it or not:
- Limited Supply – Since it features limited supply, you should have in mind that 90% of platinum comes from Russia and South Africa, while the future is uncertain. When compared with other precious metals, have in mind that its capital and energy-intensive, which makes it valuable in general.
- Demand Is Growing – The demand is growing as we speak in both investment and industrial spheres. Platinum became the vital industrial commodity used to manufacture 20% of all consumer goods that we can find on the market. At the same time, the new uses are implemented due to its properties such as resistance to corrosion, electrical conductivity, high melting point as well as durability. The investment demand is also increasing, and in the last few years, people are buying it by using mutual funds, private investors, and pension funds.
- Price – Precious metals tend to perform correctly during the recession and times of economic uncertainty, and platinum functions the same. During the last few years, it has been one of the best-performing commodities and assets that went from $350 in 2000 to more than a thousand in 2009.
Investing In Platinum
The best way to invest in this particular precious metal is to find a physical form of it. Even though you can find small amounts of it available when compared with silver and gold, you can find various items you can invest with ease.
Platinum bars are a common choice among wealthy investors, but they come in smaller sizes than other commodities. You can find coins in the form of bullion, and the Royal Canadian Mint and United States Mint produce them legally.
Even though it is not popular as silver and gold, it is still great for investment purposes due to its collectability, rarity, and value.