Platinum: it’s rare, very valuable and absolutely necessary to some of the most advanced technology on the market. This is one of the most interesting of all precious metals investments. Take a look at platinum compared to other precious metals investments and you’ll soon see why some investors are starting to become very keen on it, particularly in the economy that’s starting to evolve.
Different Times, Different Investments
Because of the economic instability during the Great Recession, precious metals investments tended to be all about gold. This isn’t surprising, of course, since gold is the traditional hedge against inflation that investors rely upon. Platinum saw some tremendous growth in prices at this time, as well, but there is more to platinum than an inflationary hedge. In fact, there’s a lot more to platinum.
Platinum is among the precious metals investments that can do very well during times when the economy is booming. It’s also among the precious metals investments that do very well when liberal economic policies are in place or when, at least, the economy is behaving as if they are.
When money is cheap and companies feel freer to invest, they ramp up production. There are several industries that tend to use platinum heavily. The most famous is the automotive industry. Platinum is used in catalytic converters—which is why junkyards always pull them off of junked cars—and it’s an absolutely necessity for meeting todays’ emissions standards.
Of course, a great deal of R&D is going into developing alternatives to petroleum-fueled cars. Does that mean platinum is going away? Not by a long shot. In fact, this makes platinum even more attractive among other precious metals investments.
Platinum is used in some of the most advanced fuel cells in production and that are only at the prototyping stage. This metal, as one can see, has a definite place in transportation. Whether the transportation relies on ultra-efficient gas powered vehicles or advanced fuel cells, platinum will likely be part of the manufacturing process.
The Investment
Platinum can be added to your precious metals investments by participating in one of two markets. The New York Mercantile Exchange offers platinum as an investment. The London Platinum and Palladium exchange is also a venue where you can invest in platinum. This investment can be done in different ways, depending upon your preferences.
There is also the option to simply buy platinum in its bullion form. There are coins made out of this metal, but they are not as common or popular as gold and silver coins. Bullion bars are great investments in that they are compact, easy to store and easy to sell when you want to divest. The physical metal also comes with the security of a tangible investment, of course, and this makes all the difference to some people who want to get into the precious metals markets.
Is It a Good Time?
There are some analysts who predict that platinum could go up in price over the coming year. This metal, like all precious metals in recent months, has lost some value, but it has such a different nature to it that the future looks bright. With the economy rapidly picking up steam and people ready to invest again, gold could lose value as people become less afraid of the future. Platinum, however, is a necessary industrial resource and that means that it could really pick up in value over the year ahead. It’s an interesting investment and, if you’re already in the metals markets, you may want to consider moving some of your interest over to platinum to prepare for a brighter economic outlook.