Why Now is a Great Time for Investing in Platinum

Precious metals have always been a sound investment. This is especially true during downturns in the economy like the current recession has brought on. But while many people might take the opportunity to invest in gold or silver, there’s another precious metal that appears ready to grow in price. Continue reading to find out why investing in platinum could show huge returns in the near future.

A Brief Introduction to Platinum
Platinum wasn’t discovered until 1906, making it the most recent to be known when compared to gold, silver and palladium. It does share common properties with those three though. The metal is lustrous, malleable, conductive and resistant to corrosion. This alone makes it very valuable.


Besides being used as jewelry and ornamentation like other precious metals, platinum has its own unique applications. It’s especially useful as a catalyst. Almost upon discovery it was realized that platinum works to catalyze hydrogen production. While it’s still used for this nowadays, it is vital in catalytic processes involving petroleum.

The Rarest Metal on Earth
Of all the precious metals, platinum is the most valuable. This is due, in large part, to the fact that it’s also the rarest of all metals on the entire planet. However, in recent times, platinum has been rare for man-made reasons. It’s harvested almost exclusively out of South Africa and the mining business there is extremely volatile. As such, the production and distribution of platinum has been equally unreliable. Though this has caused some fluctuation, it has also helped to keep platinum’s price high.

Platinum in the Near Future
There are some important indicators that point to platinum continuing to rise in price in the near future. For one, analysts are predicting platinum will reach its lowest deficit since 1999. This alone would make investing in platinum a wise choice. However, many others have recently begun investing in platinum, especially within the last 12 months, raising the metal’s value and giving reason to believe it will continue to rise. Lastly, industrial demand for platinum has gone up at the same time. This is mostly due to the industrialization of many countries and the continued expansion of others. For reasons mentioned earlier, platinum is necessary for industrial growth.

China and India Push Demand
If this wasn’t enough, two of the world’s most populace superpowers have made moves that will further the return for those investing in platinum.

As many people know, China has terrible air quality. However, the levels of pollution have become so bad that emergency efforts will need to be made. Those efforts, as it turns out, will require lots of platinum.

India is also doing its part to secure healthy returns for those investing in platinum. Coincidentally, their contribution is also due to a perceived emergency. The country has been experiencing a loss of capital thanks to investment in another popular precious metal, gold. In an effort to stem this loss of currency, India made importing gold illegal. While this would be enough reason to invest in platinum, keep in mind that it isn’t trading that much higher than gold is right now. Obviously India’s legislation will probably force that to change soon.

The Automobile Industry
Like palladium, platinum is used in catalytic converters, which every car in production features. The world’s growing population demands enough automobiles to accommodate it. This is just one more reason to be optimistic about the future of investing in platinum.

While it isn’t cheap, platinum is promising some pretty hefty returns in the near future. Though it’s prudent to remain cautious about many traditional forms, investing in platinum appears to be not just a wise place to put money, but a great place to watch it grow.

 

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