Why Investing in Platinum is More Popular than Ever

Why Investing in Platinum is More Popular than Ever 5.00/5 (100.00%) 1 vote

Investing in precious metals can be a good idea in any market. Even investing in platinum can provide you with an opportunity when the rest of the stock market is going bad. This is not only because of the value of the metal as a precious metal, or an industrial use, but also because of the scarcity of the metal and the finite resources available.

Two Main Factors for the Value of Platinum
The first reason why platinum has the ability to maintain its value is that it is in a group known as noble metals. Gold and palladium are also in this group. It is so named because the metal will not oxidize and become discolored over time. Something that is made from platinum will look the same in 20 years as it does when it is first made. This is part of the reason why it is popular for use in jewelry and in dentistry, but being a noble metal means it is also perfect for use in catalytic converters – its main use.

The other factor that protects the value of platinum is the fact it is a precious metal. When you are investing in platinum, you are investing in a metal that has a high economic worth. Along with gold, silver and palladium, platinum is one of the metals that maintains value and is a good hedge against inflation.

Buying Platinum in Bullion
Platinum bullion is openly traded as a precious metal and has an ISO currency code of XPT. The long-term store of value of the metal makes it a good investment, which is why investing in platinum has become more popular than ever in recent years. In fact, whereas gold has always been valued below platinum, this has recently flipped.

The historical trend with platinum is that it is worth at least twice what gold is worth. The relatively scarce supply of platinum, the value to industrial manufacturers and the fact it will maintain its appearance creates a very good long-term value for platinum. Even with the recent flip in value between platinum and gold, it is expected that the trend will reverse itself.

Those looking at investing in platinum will certainly find that the long-term overview is good. Whereas gold will still only be used for jewelry and trading, platinum will be used in catalytic converters and other industrial uses. This means that the already small supply of platinum will continue to decrease even as demand increases. The slow increase in value is expected to keep going up in value.

Buying Platinum Bars
The platinum bar is not an easy purchase to make when investing in platinum. This is typically because there are not many of these bars ever made. When they are made, the bars are made to a very high purity of .999 and higher. It is important to note that the bars are actually called a platinum ingot. The ingot is comprised of ten ounces of unalloyed platinum.

Platinum coins are also available for investing in platinum. These are even more difficult to find than the bars because of the difficulty in working with the metal overall. There are coins available in the form of the Canadian Maple Leaf and the American Eagle, just to name a few.

There are banks, like the Swiss Bank, that have created platinum accounts for the express purpose of buying and selling platinum. Account holders will be able to purchase without actually having to seek out the metal and purchase it themselves. This is a different form of account in that you are actually investing in a claim and can pick up your platinum any time you want to.