How to Invest in Platinum: A Guide
Investing in precious metals has long been perceived as a safe option in challenging economic situations. These metals are rare, making them a highly valued asset worldwide. While gold and silver investing is the standard choice for precious metal investment, many investors like to put their bets on platinum.
Platinum – What is It?
Platinum is one of the rarest materials in the world. It’s rarer than gold, often granting it a higher trading value. Only 190 metric tons of platinum is extracted annually compared to the annual demand for 209.3 metric tons worldwide. This is because the mining procedure of platinum is difficult. This short supply makes it a highly valued commodity.
Benefits of Platinum
Platinum may not appear as glamorous as silver and gold, but it’s nonetheless regarded as a safe asset for investment. Platinum can even offer an investor’s portfolio better protection than gold does.
Gold is a safe investment, but its value rarely exceeds a considerable margin. This is why it’s often referred to as a dead asset in the portfolio. On the other hand, platinum shows volatility due to the massive difference between supply and demand.
Platinum’s value can increase rapidly, as seen in March 2020 when the prices went up almost 90% within one day. However, platinum isn’t as liquid as gold and can’t be traded instantly at a high price.
How to Invest in Platinum
You can invest in platinum in more than one way. We’ve listed some of the common options below:
Platinum contracts allow you to have ownership without dealing with the metal in its physical form. This can save you a lot of money in terms of storage and insurance costs.
This form of investment is not recommended for beginners as there are many moving pieces to track, including the broker’s credibility and market volatility.
Platinum Bullion Bars and Coins
You can own platinum in its solid form in the shape of bullion bars and bullion coins. These can be purchased from a reliable precious metal dealer and stored in safe facilities.
Legally, there’s no problem about who owns these assets, and it’s trustworthy. However, you may have to deal with various costs, including the minting of platinum into coins and bars. This solid form may be challenging to sell, and the owner may have to settle for a lower cost than the spot value.
However, solid platinum gives you complete ownership of the metal and allows you to store it for as long as you need for trading at the right time.
You can buy platinum from local stores or online dealers like Orion Metal Exchange.
We’re one of the top precious metals investment dealers in America, serving clients across the country for more than five decades.