Is It Time to Invest in Platinum?
Although gold and silver are extremely popular, investors are increasingly interested in another precious IRA metal that is none other than platinum. The total gross demand for platinum is expected to increase to 209.3 metric tons this year. Platinum’s smaller supply due to high power costs and huge demand combination makes it a powerful player in the market. The rate of return of platinum is approximately 20.79 percent worldwide, which makes it a secure investment instrument.
Platinum Industry
Platinum is thirty times rarer than gold and its newly discovered uses are increasing its demand rapidly. Platinum is used in more industrial and manufacturing applications than other metals. It’s used in the manufacture of catalytic converters, which regulate pollution in automobiles.
Platinum prices are influenced by the automobile industry, which is the primary source of its demand. Platinum is used in automobile catalysts to minimize diesel and gasoline engines emissions. It does, however, play a role in the hydrogen economy, shifting away from fossil fuels and toward hydrogen as a primary energy source. The metal is used to produce hydrogen and fuel cells to power cars and boats. As a result, demand in the vehicle industry can affect platinum prices in various ways.
This is because platinum is employed in hydrogen-powered technology, often known as “green hydrogen.” Furthermore, the usage of platinum is increasing in the Asia-Pacific automotive sector.
Spot Platinum Price
The OTC decided the value of platinum. As of December 07, 2021, the up-to-date value of platinum is $ 970.60 per ounce.
Futures Market
Platinum futures is a commodities futures contract in which clients agree to purchase or sell precious metals at a fixed price and on a fixed date in the future. Market makers apply platinum futures to protect their assets from market instability.
A precious metals futures agreement is a lawfully binding contract for the delivery of valuable metal at an assured price in the future.
The price of platinum was around $925 per ounce in 2019. It plummeted just below the $600 mark during the COVID-19 selloff in early 2020, but a rapid and robust return saw platinum not only recoup all of its losses but also trade beyond $1,000. Platinum was priced at around $300 per ounce in the first few weeks of 2021, continuing the rising trend.
Since the platinum market is smaller than other precious metals, prices vary rapidly. Platinum is more responsive to supply and demand than gold, as it is an industrial metal. Platinum prices are also affected by political stability. Since South Africa and Russia mine most platinum, political turmoil in these nations might disrupt supply, putting pressure on prices.
Platinum futures were hovering at $1050 per troy ounce, down from a near 3-month elevated $1,064 earlier this month. Meanwhile, because platinum is utilized in automotive catalytic converters, a worldwide semiconductor chip scarcity that began in mid-2021 is projected to persist next year, putting pressure on platinum prices.
Platinum prices can be in US Dollars, Euros, and British Pounds. Platinum pricing is given in Troy Ounces, for non-payment purposes, although prices can also be displayed in grams and kilos.
Invest in Platinum Now
Platinum is valuable as it never goes out of style. They are also rare enough that their price will continue to increase over time. At Orion Metal Exchange, we facilitate investments in precious metals, such as gold, platinum, and silver coins. If you’re looking to buy platinum bullion bars and coins at the best possible price, contact us today for more information about our services. You can also email us at support@orionmetalexchange.com or request your free investor’s kit.
