Is investing in platinum a good idea?

On the other hand, platinum tends to perform better during times of economic growth. When manufacturing and industrial industries thrive, platinum prices often do, too. Therefore, it is a valuable short-term investment that usually generates higher immediate returns compared to gold. Perhaps the easiest way to invest in gold or platinum is to buy physical metals.

Bullion and bullion coins are massive quantities of platinum, gold, or other precious metals. You can buy ingots at coin dealers, brokerage firms, precious metals dealers, and some banks. Like gold and silver, platinum is traded 24 hours a day on global commodity markets. It tends to reach a higher price (per troy ounce) than gold during routine periods of political and market stability simply because it is much rarer.

In fact, much less metal is extracted from the ground every year. The price differential between the two represents supply and demand and the economic problems that affect the two metals independently, including the importance of platinum in the automotive industry and the status of gold as a haven during economic downturns. In addition to being an investment product used as a portfolio hedge, platinum is widely used in jewelry and in the industrial and automotive sectors, where it is a key component in catalytic converters used to generate cleaner emissions in vehicles. We tend to think that platinum is more expensive than gold, which is why platinum credit cards have a higher status than gold and that is why, in the world of album certification, platinum (one million units sold) ranks higher than gold (half a million units).

Platinum is a less liquid investment market than gold or silver, but high price volatility can generate greater returns for investors. A precious metals specialist with more than 30 years of experience in the securities and metals market, Trevor joined the platinum industry in 2000 after 17 years in gold mining, where he held roles in engineering, mining economics and corporate finance. Throughout history, there have been times when gold has been traded at a higher premium than platinum and vice versa. That said, if the economy is on an upward trend and industrial and manufacturing industries are on the rise, then platinum can be a great short-term investment with immediate returns much higher than gold.

Investing in precious metals has some advantages over investing in stocks, such as being a hedge against inflation, having intrinsic value, no credit risk, a high level of liquidity, providing diversity to a portfolio and facilitating purchases. Platinum has performed well against other asset classes over a long period of time and has proven to be a good store of value with a strong set of diversifying properties.

Kristin Bessette
Kristin Bessette

Lifelong beer scholar. Subtly charming zombie maven. Wannabe web maven. Incurable creator. Avid analyst. Award-winning webaholic.