For some reason, many people overlook the beauty and value of platinum when they are choosing their option for precioius metals investments. However, it is a good idea to keep a few things in mind. Platinum is found in very small quantities, especially when compared to gold and silver. It is also used regularly in different industrial practices. This means what little of it is left is continuing to dwindle. If you are looking for a way to build a very strong portfolio, then this is the metal that you really should consider. However, if you don’t know that much about it, a little research can help you determine just how to get started.
How Platinum Is Used
As mentioned, there are many different industrial uses for platinum that actually destroy the metal. This dense, malleable metal is included in a category called “unreactive”. That means it is easy to use through quite a few different applications. It won’t corrode as easily as other metals and it is very strong. For that reason, platinum is used in catalytic converters, a very important part on motor vehicles. These converters control emissions from vehicles and are required by law in most states in the US. There are other uses for platinum as well. This metal plays an important role in a variety of dental applications and even is used in thermometers.
As the supply of platinum continues to dwindle, the value has nowhere to go buy up.
Where Platinum Comes From
The vast majority of platinum in the world is mined in South Africa. About 95% of the reserves available come from this country and this contributes to the metal’s scarcity. Additionally, there have been several instances of unrest and mining strikes in South Africa. Because of this, the supply of platinum to the rest of the world has been shut down from time to time. Again, this is another reason why the metal is considered so valuable. It is simply unclear as to how often it will be available.
Supply and Demand in Precioius Metals Investments
People know that investing in precious metals is a good idea, especially when the US economy is struggling. They will reach out to gold, silver, platinum, and palladium and this puts a greater demand for the metals. However, when there is such a limited supply, the value will skyrocket. This is a basic principle of supply and demand.
Like gold, platinum almost always does well when the US economy struggles for the same reasons. When people are fearful of the markets, they consider an alternative option that seems safer and more secure. They turn to precioius metals investments because they don’t have to worry about losing everything in the wake of an economic crash.
Once you determine that you would like to invest in platinum, you will have to choose the right method. You could actually purchase the physical metal as coins or bullion, and this is a very popular option. You could also consider ETFs or investing in the actual platinum industry, such as through miners.
Ask any financial expert and they will indicate that the future of platinum looks good. It seems that the metal will continue to rise in value in the coming months and years. This is good news for anyone considering precioius metals investments. While most people turn to gold or silver to build their portfolio. There are very good reasons to choose platinum instead. This very rare metal is becoming sparser as the years go by. When it is added to any portfolio, it is a guaranteed way to secure money for the future.