What Is Fueling Platinum Investing In 2013

investing in platinum
What Is Fueling Platinum Investing In 2013 5.00/5 (100.00%) 6 votes

Everyone knows that the markets for gold and silver are heating up this winter, but what about for platinum? Platinum investing in 2013 and beyond offers a lot of potential for profit, but only for those up to speed and in the know on all the highs, lows, and pitfalls present in this traditionally volatile market.

Investing in platinum is not for the faint of heart. However, it offers a chance at long-term security for those bold and wise enough to both leverage and manage risks.

Supply And Demand

Compared to many other precious metals, platinum is incredibly rare and quite difficult to mine. As much as 70% of the world’s platinum is mined in and exported from South Africa. Earlier in 2013, the African nation made an agreement with Russia, the world’s other major supplier of the precious metal, to expand the platinum market.

Platinum is needed by a variety of industries, but the majority of the demand for the precious resource comes from the automobile and jewelry industries. Therefore, platinum investing in 2013 and beyond will be influenced both by consumer spending and mining successes around the world.

Buying And Storing Platinum

Platinum is renowned amongst financial experts for its high value density ratio. In simpler terms, this means that it is possible to inexpensively store an expensive physical amount of platinum. Because of this, there are a plethora of reputable companies ready and waiting to affordably buy, sell, and store platinum coins and bullion.

However, Exchange Traded Funds (ETFs) are one of the more popular modes for platinum investing in 2013, as well as one of the easiest.  ETFs are remarkable in that they completely get rid of the challenges and costs involved with storing and insuring physical quantities of platinum. Platinum bars are held in secure, common vaults all around Europe, leaving investors free to simply trade in the related ETFs.

Other Ways To Invest

Purchasing stocks in the companies that mine platinum is yet another popular way to get in to platinum investing in 2013. In fact, platinum stocks are how many investors first stake a claim in the platinum market. The companies currently offering shares in the marketplace include Anglo Platinum (AGPPY), Stillwater Mining Company (SWC), and Impala Platinum (JSE:IPA).

It is also possible to invest in the platinum market by purchasing futures on the CME. Trading under the symbol PL, such contracts are for 50 troy ounces of platinum each. Their values are determined by troy ounce and listed in US dollars. Trading in these lucrative futures continues over a period of 15 months and ends on the third to last business day of the delivery month.

Outlook For Platinum Investing In 2013

There is no denying that the platinum market is currently marred by a considerable amount of uncertainty. While demand for the precious metal remains high around the planet, unfavorable and unstable labor conditions in South Africa are casting a shadow over the sustainability of the current level of supply, let alone the likelihood of its expansion. For this reason and many others, market analysts are not yet sure how the recent pact between Russia and South Africa to increase platinum extraction will pan out.

While short-term gains on platinum investments are in no way guaranteed, platinum investing in 2013 is favorable for those primarily seeking long-term returns. Historically, platinum has proved itself many times over to be one of Earth’s most precious and valuable metals. Due to its rarity, the platinum market is often volatile, but also extremely profitable for those who are wiling to spend the necessary time and effort to intelligently ride its highs and lows.