Platinum bullion is very valuable and easy to store. Many industries use this precious metal, making it a valuable commodity to invest in or collect. You have several forms of platinum bullion to choose from, including coins and bars. Learn more about platinum bullion and your investment options.
What Is Platinum Bullion?
Platinum is one of the world’s rarest metals. You can buy platinum bullion in bar, round or coin form. This precious metal is hypoallergenic, corrosion-resistant and very dense. This means you can carry more platinum in a smaller amount than other forms of bullion, like gold. It’s about 20 times rarer than gold, making it a good investment choice for many.
When and Where Did Platinum Bullion Start?
Humans have used platinum in jewelry and decorations for centuries. One of its earliest-discovered uses was on the Casket of Thebes, which was adorned with gold, silver and platinum. South American natives used platinum in jewelry well before the 1400s when Europeans first documented the metal. Spaniards first found platinum in Columbia and called it ‘platina’ (little silver) due to its appearance [1].
Where Did It Expand?
Platinum bullion is very valuable and has become more popular in recent years. This precious metal can only be found in 0.005 parts per million on Earth. South America once led countries in platinum production, but South Africa now produces the most platinum, with Russia close behind [2].
Russia was the first to mint platinum during the late 1820s. Since then, coins have been issued around the world as a form of currency. The Australian Mint and Royal Canadian Mint both started to mint platinum coins in 1988. The United States was next with a mint date of 1997, followed by the Austrian Mint in 2016.
Platinum also has industrial uses because it is a good catalyst. The automotive industry uses it for catalytic converters, and electronics manufacturers use a platinum alloy for electrodes, thermocouples and circuits.
How Has the Favorability of Platinum Bullion Evolved Over Time?
Platinum prices have been up and down over the years due to supply and demand. Although platinum bullion is valued at almost twice that of gold, it is also sought out less. It has a much shorter history than either gold or silver and is mined in much smaller quantities. There are very few coins or bars minted from platinum bullion because it is expensive and difficult to work with. However, platinum is often sold or traded at higher per-unit prices.
What Factors Sustain Platinum Bullion’s Performance?
Investing in precious metals, especially platinum, requires research. The industry varies considerably from metal to metal, and with a high cost of production, there are challenges to consider. Increasing production costs and prices and numerous regulations affect the cost of precious metal. You should take the economic, social and environmental performance into consideration before investing in platinum bullion. Here are some other considerations to keep in mind:
- The outlook for platinum bullion is higher than other sectors using the same metal.
- The attraction of this rare metal as an investment opportunity continues to rise due to lower prices and positive outlook.
- Current prices are at an all-time low compared to other metals, such as gold.
- The use of platinum in other markets, such as electronics, may drive up the price.
Why Should Investors Choose Platinum Bullion?
Platinum is a great investment; its wide variety of uses give it a stable future. The scarcity of it presents an excellent opportunity if you plan to invest in it long term. The density makes it easy to accumulate quite a bit of wealth without taking up much space. Platinum bullion is also available in a variety of weights and sizes, so you can easily purchase and sell any quantity you want. Platinum is also one of the few precious metals that you can add to your individual retirement account portfolio.
Platinum Coins
Platinum bullion has fewer producers than either gold or silver bullion. When you’re ready to invest in platinum, coins are a good choice, especially if you like the collector’s appeal. Platinum coins aren’t used as currency, so they are a higher risk investment. You can buy several types of platinum coins produced by international mints.
American Platinum Eagle
- The Platinum Eagle was first minted in 1997.
- It has 0.9995 pure platinum content.
- The U.S. Mint introduced the ‘Declaration of Independence’ design in 2018, which features a bald eagle and an olive branch.
- Only 4,000 coins were minted in 2015, and only 10,000 coins were minted in 2016.
Canadian Platinum Maple Leaf
- The Platinum Maple Leaf was first introduced in 1988.
- Production ran from 1988-2001, and then again in 2009.
- It is a 1-ounce coin that features Queen Elizabeth II on the obverse and a sugar maple leaf on the reverse.
- It also has engravings of the metal content, purity and the nation of issue.
Austrian Platinum Philharmonic
- Austria’s Platinum Philharmonic coin was first released in 2016.
- The obverse has the great pipe organ from the Golden Concert Hall in Vienna.
- The reverse features a cornucopia of instruments including a bassoon, cello, Vienna horn and four violins.
Platinum Bars and Rounds
Another way to purchase platinum bullion is in platinum bars or rounds. Bars offer some size variety but are most often found in 1-ounce and 1-gram offerings. The ingot is a standard platinum bar that’s 10 troy ounces of 0.9995 pure platinum. Bars are often hallmarked to guarantee the purity and weight of their makers. The difference between purchasing a platinum bullion coin or a platinum bullion bar is simply a matter of choice. Rounds are extremely scarce as very few have been produced.
The final piece to consider when purchasing platinum as a part of your investment portfolio is storage. Either store your platinum bullion in a safe at home, place them in a safety deposit box at a bank or use a storage firm.
Article Sources:
1. New World Encyclopedia. ‘Platinum,’ https://www.newworldencyclopedia.org/entry/Platinum. Accessed October 12, 2020.
2. Statista. ‘Major countries in global mine production of platinum from 2015 to 2019,’ https://www.statista.com/statistics/273645/global-mine-production-of-platinum/. Accessed October 12, 2020.