All the Reasons to Invest in Platinum
Platinum is a very scarce resource and even less readily available than gold and silver.
It makes it a rare metal and very valuable due to lower supply and more demand. This increases the price of platinum, which is even more than gold.
Why Would You Invest In Platinum?
If you’ve already explored your options into investing in gold and silver, then there are other precious metals like platinum and can add great value to your investment portfolio.
Reasons To Invest
Industrial Demand Growth
Platinum is more sensitive to the laws of supply and demand.
It’s an industrial metal as it’s a key raw material in the automobile industry. It’s required in the manufacturing of catalytic converters,which reduce the carbon emission of vehicles.
This demand increases the price of platinum when the supply runs low.
Other industries that need platinum can be anticancer drugs, biomedicine, oxygen sensors, electrodes, glass making equipment. It’s also used in jewelry making and they’re more precious pieces than gold and silver.
Platinum is abundantly found in South Africa, where the workers are often exploited and strike often during mining, which can lower the supply.
Any political instability, tariffs or trade restrictions will also cause the platinum supply to vary.
Platinum Reduces The Overall Investment Risk
The investors have 2 main goals when they are investing in platinum which are:
- To see capital appreciation from the investment
- Hedge their portfolio
Historically, we’ve seen that the prices of platinum have increased significantly compared to other precious metals.
This is the reason people are more inclined towards securing their billions in platinum for investment.
Persistent Investment Growth
Many investment funds tend to purchase platinum in large amounts using exchange-traded funding (ETF).
People who secure platinum ETFs can enjoy many benefits, including a diversified portfolio and other tax benefits. This has been promising a great future to platinum mining companies.
Platinum is volatile to the market; however, the prices have increased exponentially in the past. So, investors can buy it at a lower price and then sell it at a higher price in the near future.
It gives them the assurance that their money won’t devalue and would experience a consistent increase.
Many Ways To Invest In Platinum
You can invest in platinum by buying physical platinum in the form of coins and bars. Another way is to buy platinum stocks of the largest platinum mining and production operations.
Or you can opt for investing in ETFs,which is the simplest way to hedge your investment. Most people also opt for investing in platinum by buying jewelry.
Our experienced account representatives will help you understand the market knowledge from spot pricing to economic events.