Platinum is gaining a lot of traction in the fashion and financial world. Find out Why Platinum is the new Gold.
Platinum has been a precious metal of mine for a long time. It’s beautiful sheen and color make it a prized jewelry item in the wedding industry. Chances are you’ll see most wedding magazines lined with brides fashioning this gorgeous precious metal. Most people are quite happy to invest in stocks and futures, however, did you know that some of the jewelry you buy can become an investment? Those who do tend to stick to gold and silver, as they’re familiar and seen as safe. Gold and silver will probably stay as the most popular metals to invest in, especially if a visit to this website is anything to go by, but platinum is gaining some ground. If you’re already investing in precious metals and looking to diversify, or if you’re new and want to get off to a good start, then platinum could be your answer.
More about platinum
Platinum is one of the precious transition metals; it has the chemical symbol Pt and the atomic number of 78. It looks a lot like silver and was once mistaken for it; its name is derived from the Spanish word “platina”, which means “little silver”. Platinum occurs in South Africa, Columbia and some areas of the US. It’s usually found alongside other metals like palladium, rhodium, osmium and ruthenium, as well as gold, silver, copper and nickel.
Platinum is one of the world’s rarest precious metals, with around 118 tons mined each year – only around 6% of the world’s annual gold production by weight.
Why you should invest in platinum
This metal should get some more love as it has a few reasons to invest in it.
There’s a limited supply
While the production of platinum is growing year by year, it’s still much rarer than gold and silver. Most of the world’s supply – around 80% – comes from South Africa and this means it could run out in the near future unless new sources are found. As well as being rare, it’s very capital, time and energy-expensive to extract.
Demand is growing
Both the industrial and investment sectors have a growing appetite for platinum. The metal is essential to many industries, with around 20% of all consumer goods either featuring platinum or using it in their manufacturing processes. More uses for the metal are being found all the time, including medical and medicinal applications like anti-cancer drugs.
Investors are increasingly turning to platinum too, especially private investors and people looking to grow and diversify their pension funds.
It performs well in turbulent times
Precious metals do well when the prevailing economic landscape is looking a bit rocky. In fact, over the last two decades platinum has been one of the world’s best-performing assets.
How to invest in platinum
For many, the best way to invest in platinum is to actually own it. There are not as many products here as there are with gold and silver, but you can buy platinum bars, although they tend to be smaller than gold and silver bullion bars.
There’s also coins, made by both the US Mint and the Royal Canadian Mint. Popular platinum bullion coins include the Platinum American Eagles, the Platinum Canadian Maple Leafs, Australian Koala Coins and Platinum Chinese Pandas.
In short, platinum might not be as popular as gold or silver but it’s a brilliant metal to invest in, especially if you want to diversify.