The Case for Platinum

Platinum is an extremely rare precious metal. Supply is limited. In 2024, platinum supply deficits are expected to reach 476,000 ounces. South Africa is the leading producer of platinum with Russia, Zimbabwe, Canada, and the United States also contributing to global supply. Platinum is a key component of green energy. Platinum is utilized in hydrogen fuel technology and auto catalysts. From a historical perspective, platinum is currently considered extremely undervalued when compared to the current value of gold. Due to the supply deficits and the push for green energy, platinum is expected to rise in value moving forward.

Platinum in Review

The platinum price per ounce in 1998 was $340 per ounce and within ten years, platinum reached an all-time high of $2,200 per ounce. Platinum gained approximately 550% in value between 1998 and 2008. Currently, platinum is $1007 per ounce and the cost to produce platinum is currently $1150 per ounce. Making platinum an attractive value at this level. When choosing an investment entry point, investors should implement a strategy to buy low and sell high. The current value of platinum appears to be extremely low, and combined with the current supply deficits, should offer a great opportunity for upside potential.

Platinum Deficits

Johnson Matthey is a British multinational specialty chemicals and sustainable technology company. They were established in 1817. Johnson Matthey has been publishing reports on platinum since 1957. According to Johnson Matthey, platinum in 2024 will reach the biggest deficit in ten years. Based on supply and demand fundamentals, platinum appears to offer a great opportunity for upside potential.

Buy Low and Sell High with Platinum

Platinum is extremely undervalued. In fact, it is more undervalued than silver or gold. Currently, platinum’s market value is less than its cost to produce. Although gold’s production cost is lower than platinum’s production cost, and platinum is 30 times rarer than gold, the yellow metal’s current market value is over twice the market value of platinum. The current market value combined with platinum’s supply deficit, which is expected to continue through the remainder of this decade, point to a rise in value moving forward.

Platinum Coins are Legal Tender Designated and IRA Eligible

With the 1980s came the production of platinum coinage. The first one-ounce platinum bullion coin was made by Isle of Man. In 1988, Australia’s Platinum Koala and Canada’s Platinum Maple Leaf were released. In 1997 the American Platinum Eagle coin was released. The Platinum American Eagle is legal tender designated and is an IRA eligible coin.

The following article is created by Orion Metal Exchange for the benefit of our investors and perspective investors alike. We seek to provide relevant content concerning precious metals and the impact caused by economic and geopolitical trends that will most likely impact your financial future. If you are interested in learning about precious metal investing, call 1-800-559-0088, for a FREE investor kit.

With Orion Metal Exchange, investing in platinum is simple. With Orion, Platinum can be purchased, exchanged, and liquidated with a simple phone call. We facilitate precious metal transactions in IRS approved retirement accounts, commercial insured storage vaults, and insured home delivery.

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Questions? We’ve Got Answers!

Is platinum undervalued?

Yes, the value of platinum is below the cost to produce.

Is platinum a better investment than silver?

Platinum and silver are both precious metals utilized in industrial and technological applications. Investors should consider diversifying in both metals before they increase in value.