Is Platinum a good Investment?
Many investors often ignore Platinum for its “shiny” counterparts when building a profitable precious metal portfolio. In most cases, the “gold craze” can be very quick to overshadow the financial potentials of other lesser-known metals like Platinum and Palladium. Notwithstanding its less popularity, Platinum has the potential to positively impact your investment portfolio.
As you would get to know in this article, Platinum is an in-demand commodity that has crucial significance across several manufacturing industries.
Understanding Platinum
Platinum is quite similar to other precious metals when considering its profitability, its value as a safe haven, hedge against inflation, and how its price movement varies from other major shares and stock options. As rightly summed by Josh Simpson, a financial advisor with Lake Advisory Group;
“Investing in platinum is just like investing in any other precious metal such as gold, silver, or copper,”
One factor that sets Platinum apart from other metals is its rarity -thanks to its mining difficulty. According to World Platinum Investment Council, Platinum is found to be about 30 times rarer than Gold due to its low concentration in the
In terms of global production, Platinum is less likely to fill an Olympic-sized pool. Compared to Gold which could easily fill three Olympic-sized pools. Moreover, you can easily add this rare metal to your investment portfolio.
Historically, Platinum has performed significantly well over the long term. It is worth noting here that due to the short supply of Platinum, its high volatility may disrupt short investments. So, when you buy a 1 oz platinum bar, for instance, you should ensure this aligns with your long-term goals.
Why Invest in Platinum?
As earlier mentioned, Platinum can be a good investment option for portfolio diversification. Whether you choose to buy platinum bars and coins or invest in its stock, ETFs, and futures options, here are some reasons to invest in Platinum.
- Low-Entry: Platinum offers investors the lowest entry price among other precious metals. Apart from Silver, Platinum also happens to be one of the cheapest precious metals you can buy.
- In High Demand: Platinum’s demand is always on the rise. This commodity is well utilize across various industries. For instance, in the automobile industry, Platinum is used to produce catalyst converters, and in the medical industry, it can be used in the treatment of cancer.
- Hedging quality: Similar to most precious metals, Platinum price doesn’t move in correlation with other major investments such as stocks, shares, etc. As such, its value isn’t negatively impact during inflations and other economic depreciation.
- Future prospect: Platinum’s demand is expected to soar in the nearest future. Recent legislation on global emissions would see many manufacturers rev up their demand for Platinum. As a long-term investor, buying 1 oz Assorted Palladium Bar can be a great way to profit from this demand.
If you need additional information on how you can invest in Platinum, contact TRB Bullion today!