Is Platinum a Good Investment?
Many investors today know the merits and financial benefits of investing in gold and silver. Yet, only a few understand the worth of platinum. According to the World Platinum Investment Council, platinum is an excellent portfolio diversifier when it comes to tangible assets. It offers the kind of investment longevity that you seek to create a diversified portfolio.
Platinum is 30 times rarer than gold and is historically regarded as a safe hedge against inflation. The pricing prediction for the upcoming years indicates that platinum will remain stable for the most part.
Precious metal storage companies in the US offer investor solutions and a thorough market update for clients who wish to invest in platinum products.
Here’s everything you need to know about investing in platinum:
A Great Option during Economic Distress
Platinum prices are likely to rise during inflation. Unlike stocks, it doesn’t depreciate. Precious metal investors should invest in platinum as it has a counter-cyclical relationship with inflation and is a safe option during economic distress.
Multiple Investment Options
One advantage of investing in platinum is that you can start with various investment options. Investors can purchase bars or coins depending on their budget and needs. You can also consider buying stocks in mining companies to invest in this precious metal. Furthermore, investors who can’t risk storing their collections at home can opt for exchange trade funds without owning physical platinum.
Investment in platinum ETFs has grown in recent years. Apart from the US, Asian markets have also shown a keen interest in platinum investments in recent years. Simply claim a specific amount for your platinum coins and sell them when the rates go up. The various investment options prevent you from putting all your eggs in one basket.
Review our retirement account guidelines for more details if you’re fretting about the ETF profit model.
Zero Correlation with Regular Assets
Supply and demand is the only factor that platinum investment depends on. This means all platinum assets and reserves might become pricier in the upcoming years since it’s a rare metal. Additionally, platinum has the least correlation with fixed income assets, public equity funds, or the share market.
Liquid Investment
Industrial Demand
Some industries use platinum for manufacturing purposes. Therefore, there’s always a demand for it. For example, jewelry makers use platinum to design lavish pieces and are willing to pay a good price for the precious metal.
You can also sell your platinum collection to smartphone and computer-manufacturing companies that use platinum in small amounts to manufacture electronic items.
The automotive industry is another major industry that uses platinum. Thus, investing in platinum can bring you profitable returns in the future.
Limited Supply
Platinum is a valuable precious metal because of its rarity, with decent reserves found only in Russia and South Africa. These reserves won’t last forever, which means platinum prices are likely to rise in the future. Furthermore, platinum’s prices are likely to soar higher if the mining industries run out of business. With a lack of supply, industries will be willing to pay a higher amount, making it a great opportunity for investors to earn a large profit.
Market Demand
Various individuals try to supply platinum due to its increased use in industries. Several organizations buy and sell platinum for profitable returns. This proves that platinum has a high market demand and is estimated to grow by 7 million ounces globally over the next few years. Thus, now is the perfect time to invest in platinum as it will continue to have a high value and demand.
Intrinsic Value
Many investors believe that the fiat money system might collapse soon, having nothing of actual value to support their worth. Therefore, investing in platinum can help you prepare for the worst economic crisis. Having tangible assets of high value can help you trade for goods if and when the traditional money system collapses.
Easy to Mold
Platinum is easy to melt, bend, and shape. However, its value depends on its purity and weight rather than its shape. It can be melted down into numerous items regardless of what form of platinum you have. You can reshape platinum for easier storage, and it will maintain its purity and weight when you’re ready to sell.
Platinum is also highly resistant to rust and corrosion. Investors need not worry about storing it in environmentally-safe conditions as the precious and rare metal won’t lose its value even when left in damp conditions.
Low Risk
Buying platinum is a low-risk investment. It will continue to have a higher price even if the fiat money system never fails. Your platinum investment will always bring back profitable returns despite fluctuating prices.
Contact Orion Metals Exchange
Looking for best gold investment companies ? If you’re looking for a trusted precious metal investment company, contact us at Orion Metal Exchange. We have been in business since 2017 and have helped several investors buy gold and silver bullion bars at affordable rates. Visit our website or contact us now to invest in tangible assets through accredited retirement accounts.
