Platinum is one of the rarer precious metals available to invest in. It’s available in all varieties, from bars to coins and more. However, compared to gold, silver, and other investment avenues, you might be thinking, why invest in platinum? This guide will help you make a decision.
How Valuable is Platinum?
As mentioned, platinum is an incredibly rare precious metal. It is only found as a byproduct of mining gold and silver. There aren’t any pure platinum mines. On top of this, the vast majority of platinum is mined in South Africa, making it more expensive to ship around the world. If South Africa is in poor relations with America or other countries, this could slow the distribution of platinum even more. Russia and Zimbabwe are other countries that do this.
This rarity, of course, makes it more expensive than gold and silver. However, platinum has industrial use as well. It’s used specifically in cars, with every single car part manufactured needing some level of platinum. If automotive demand is high, platinum becomes even more valuable.
Then, there’s platinum from an investment standpoint alone. Considering it is generally more expensive than other metals, investors with a lot of money will buy it up. Having that rare metal is a kind of reward for these traders. Some even view it as a safe haven for hedging the United States economy. However, the asset’s volatility makes that a questionable decision.
How Has Platinum Performed Recently?
Interestingly, despite its rarity, platinum has been in a bit of a bear market. While slight, gold has actually beaten it in price for a short time, starting in 2018. This still remains the case as of this writing, with many using gold as a hedge due to the uncertain economy.
That said, experts believe we’re nearing the end of a bear market for platinum. This shows in the price charts, with the rare metal still holding high above its previous prices. Even then, that volatility can be seen as a good thing for some investors in the short-term. For the long-term, however, the prospects are less certain.
Is it Easy to Invest in Platinum?
It’s fairly easy to invest in platinum. Of course, your local precious metals dealer might not always have it, especially compared to more common metals. But, you can always invest in platinum online. There are various mints and other platforms that allow you to invest. From there, you can have it shipped to you or go and pick it up. Most investors do the latter. This does depend on your location, however.
Like with most precious metal investments, there are additional fees worth noting. Most dealers will charge an extra convenience fee, and that’s not to mention any tax you might pay. Fees for platinum are certainly higher than the others, again, due to its rarity.
Also, you’ll have to go through an identity verification process before investing, be it in person or online. This can take a bit of time, so it’s best to do this ASAP.
Finally, you’ll need a place to store that platinum. You can purchase a safe and keep it stored in there, or choose a dedicated space to do so. The former is an expensive initial purchase but can keep your metals safe for the rest of your life. The latter will charge a monthly or yearly fee and leaves the safety of your investment in the hands of another. It’s generally recommended you invest in a solid safe to protect your metals.
Now that you’re aware of platinum’s rarity, as well as how it performs, you can hopefully decide if it’s a good long-term investment for you. No matter what, ensure you have a good place to store it. Don’t cheap out on your investment.