If you are thinking about investing in precious metals, consider adding platinum to your list of metals to consider. Though platinum is a less traditional choice than gold or silver, this very rare metal offers a variety of benefits to diversify your portfolio.
Various industries use platinum today, and with new advances in sectors like medicine and automobile manufacturing, demand for platinum will likely continue to remain high. Investors can choose from a range of bars and coins when buying platinum. Learn more about the benefits of investing in platinum and the properties to look for when buying this metal.
Platinum is incredibly malleable and versatile, making it incredibly useful in many applications. Properties of platinum that make it useful in a variety of sectors include:
Platinum commands a high price for a variety of reasons:
The factors that make platinum useful in industrial applications also make it a good choice as a precious metal investment:
You can buy platinum in two main ways: platinum bars or platinum coins. Both bars and coins offer different investment benefits, so it's helpful to learn more about these forms to decide which may be right for you.
Platinum bars contain 0.9995 pure platinum. They also bear stamps that confirm their purity. If you want to start building your assets quickly, platinum bars may be a good choice.
Unlike other precious metal bullion bars, platinum bars are typically only available in the following sizes:
As manufacturing costs are about the same for small and large bars, you pay a lower premium if you purchase a larger bar compared to a smaller one. For example, it is less expensive to buy a single 10-ounce bar than to buy 10 1-ounce platinum bars.
Producers of platinum bars for investment include:
Credit Suisse and PAMP Suisse, two of the leading precious-metal refiners in the world, offer most of the platinum bars available on the investment market. Their popular options include the 1-ounce Credit Suisse Platinum bar and 1-gram PAMP Suisse Fortuna Platinum bar, respectively.
Platinum coins are issued by governments and have lower face values than the platinum content value. The mandated purity of these coins is 0.9995 pure platinum. The most popular size for platinum coins is 1 troy ounce. Some platinum coins offer additional value as collectibles, so you may enjoy the process of building a collection that could potentially increase in value.
Popular examples of platinum coins include:
Platinum's scarcity coupled with its range of uses in multiple industries means demand for this metal will likely remain high. Additionally, platinum offers ease of storage, transportation and security compared to other metals with a lower value-to-density ratio. Though platinum might not be as traditional as gold or silver in terms of precious metal investment, it offers an interesting option to diversify a portfolio, with both bars and coins available for purchase.