Live Metal Prices / oz
Gold:
1738.89 USD
Silver:
19.15 USD
Platinum:
881.00 USD
Palladium:
2027.00 USD
Rhodium:
14650.04 USD

Investing in Platinum

In the precious metals market, gold always glitters, silver always shines, and platinum, well, platinum is perennial. Platinum is one of the scarcest, heavy-duty, and commercially viable assets in the market today. In essence, it is a true gem amongst the platinum group metals (PGMs).

Like gold and silver, platinum can be volatile. However, its other characteristics make platinum an undervalued investment worthy of long-term financial gains. Platinum's industry applications make the white metal one of the most undervalued metals on the market. For this reason, and those discussed below, it is worth investing in platinum.

What Makes Platinum Valuable?

Platinum’s value is based on its rarity, first and foremost. Almost 2/3 of the global platinum supply is mined in South Africa, followed closely by Russia. These two countries are also the world's top two suppliers of platinum globally. Platinum is harder to mine than gold, as natural deposits are more difficult to locate. In fact, annual platinum mining is less than 1% of that of gold mining.

One aspect where the use of platinum has continued to grow globally is in the jewellery industry. The main reason why platinum is popular in jewellery is because of the metal’s chemical properties. Unlike silver, platinum does not discolour with exposure to air, even water. 

It is resistant to corrosion and it is hypoallergenic, meaning people allergic to metal alloys can wear it. These factors help to prop the metals price up in the jewellery sector.

Platinum also has the necessary attributes for certain industrial applications, particularly in autocatalysis. Platinum enables reactions inside an auto-catalyst to occur at a low temperature before a vehicle starts, when emissions are at their peak. These help to allow for the automotive industry to meet vehicle emissions standards, including those recently set by the EU. This is where the durability of platinum also comes into play, as catalytic converters need to perform in the long term.

Is Platinum A Better Investment Than Gold?

One question often asked and by investors is whether platinum is a better investment than gold. Gold is more stable than platinum, and this is due to the mining and production process. Gold prices do not tend to fluctuate as much as platinum prices. However, platinum has always performed better during times of economic growth.

When manufacturing and industrial industries prosper, the price of platinum is healthy. This makes platinum a valuable, short-term asset.

Sceptics would argue about the volatile nature of platinum. It is, however, this very volatile nature that makes platinum a good asset to bet on. The price of platinum can rise and fall quickly in correlation with the economy. Investors who want to take advantage of these moves have the opportunity for significant capital growth if they are on the right side of the platinum market. As a result, this makes platinum a better opportunity than gold, especially for investors with a tolerance for risky ventures. 

Platinum Investment in The Healthcare Industry

Every investor knows about the demand for platinum in the jewellery and automotive industry. But another sector where platinum is highly relevant is in the healthcare industry. Healthcare is a massively growing industry, which can only stand to benefit platinum investors.

Platinum is recognized for its excellent biocompatibility attributes, radiopacity that is the visibility in x-rays machines, and it is electro-conducive. Platinum is used extensively in permanent, implantable medical devices such as artificial pacemakers, neuromodulators, and cochlear implants.

Concerning platinum’s exceptional mechanical strength, it means investing in the metal because of medical sector growth may be a wise decision. The properties of platinum mean it can be turned into small, complex designs, particularly for surgical applications. In this modern age of technological advancement in the medical field, platinum is crucial.

Since platinum is needed for making many medical devices, the metal can be a financially sound investment in the aftermath of the Covid pandemic. As millions have been affected by the virus, which is said to have long-term health implications, the practical usage of platinum is increasing. One feature of platinum that makes it highly alluring to investors in the medical industry is its inertness. Being chemically inactive means platinum is stable and highly unlikely to react with other substances. 

Why Invest In Platinum Bullion?

There are many great reasons to invest in platinum. Many of the reasons to buy platinum coins and bars are already out there. 

The benefit of platinum investing is that buying platinum offers investors low-risk market entry into a strong asset with great long-term returns. Platinum also has a low correlation with the performance of traditional assets and the metal tends to perform well during periods of economic recovery. This means that by shifting investments towards platinum you can improve the risk-adjusted returns of your portfolio.

Finally, the rare properties of platinum in new technology and the development of future automation are still not reflected in its current value. The world is moving towards electric, self-driven cars and trying to lower carbon footprints. Precious metals like platinum can be instrumental in the assistance of progress. 

Wrapping Up

Platinum is worth adding to any precious metals portfolio based on the metals scarcity and increasing global demand. Already undervalued as compared to the gold, platinum may be one of the best investment opportunities there is at the moment. Swissbullion.eu carries a wide range of platinum bars and coins that are excellent for any precious metals portfolio. These include platinum bars by PAMP, Valcambi, Credit Suisse, Argor-Heraeus and others. Platinum coins include platinum Britannias, platinum Maple Leafs, Krugerrands, Philharmonics and others. For further questions, please do not hesitate to contact us.