Investing in Platinum: Positives and Risks
As is the case with any kind of investment – be it in precious metals or stocks and bonds – certain positives and risks need to be considered. If you’ve got some money set aside that you want to invest and grow, you might want to consider investing in platinum as a way to safeguard that money.
However, before making any major investment decisions, look at the positives and risks associated with that investment.
Why Invest in Platinum? The Positives
Investing in platinum has a number of benefits that make the investment seem like a great opportunity. Here are some of those positives to consider:
- Platinum is almost equal to gold in investment value but has the added benefit of stronger supply and demand. This means that it makes a great portfolio diversifier for any investor.
- In the past 40 years, platinum has been similarly priced to gold, with only 4 occasions when it had been discounted as compared to gold. However, that discount price only lasted for a short period, after which the price of platinum returned to its usual price. This assures us that platinum has a reliable and sustainable market value.
- Platinum offers a relatively low-risk investment option for investment beginners.
- When you add platinum to an investment portfolio that already includes gold, you can improve the risk-adjusted returns for that portfolio over time.
- Platinum is expected to be used in developing newer technologies, so the price of platinum will go up. As this increase in price has not occurred yet, now would be a good time to buy platinum.
The Risks of Investing in Platinum
While there are significant benefits to consider when it comes to investing in platinum, there are also a few risks to keep in mind that might affect your decision:
- The market price of platinum can fluctuate in the short run before it stabilizes. This can mean that the price of the platinum you purchase can end up lower than what you bought it for. If the price lowers significantly, you can lose a lot of your investment value.
- Platinum is valued and exchanged in US dollars. If you are buying platinum in any other part of the world, you are subject to changes in the exchange rate, and if the value of the dollar rises against your currency, your investment loses value.
The Most Reliable Gold, Silver, and Precious Metal Investment Company
Orion Metal Exchange is one of the best gold, silver, and precious metals investment companies. We ensure complete transparency in our online product pricing, provide precious metals ira services, and can assist you in determining which precious metal investment is right for you.
Get in touch with us to learn more about investing in platinum and other precious metal investment options.