Why Platinum Should be in Your Portfolio

It seems like gold and silver get all the attention when people discuss investments in precious metals. It is time to turn the spotlight to platinum. This often under-appreciated precious metal is coveted across the globe for good reason.

1oz Perth Mint Platinum

The Story of Platinum

Platinum production has undulated across the recent years for various reasons. This precious metal was in extraordinarily high demand up until the late 1990s when prices significantly dipped. Plenty of mints and refineries left the market following the price drop. Yet platinum prices have increased in the 2000s, bringing many producers back to the marketplace. Investors are now scooping up platinum bars and coins left and right. Part of the reason why the demand for platinum has increased in the 21stcentury is its broad use. Gold and silver tend to be used in a handful of specific industries while platinum is used for everything from electrical contacts to automobile parts, lab equipment, electrodes and beyond. Yet platinum is desired for reasons beyond its industrial properties.

A Speculative Investment Worth Looking At

If you have not seen platinum with your eyes, it is time to do so. You will find this precious metal is actually quite beautiful. Once you consider its idiosyncratic supply and demand fundamentals, you will likely begin to understand why investors believe platinum has the potential to provide some fantastic returns in the months and years to come. The surprising truth is there is less platinum on the planet than gold. This is an incredibly rare precious metal every investor should have in his portfolio. Let this statistic marinate in your mind for a moment before you make your next investment: Platinum is upwards of 20 times more rare than gold. Yet gold is sometimes priced above platinum as it is widely accepted as a monetary asset and a safe haven to park money when inflation starts to spike or social/political strife breaks out in one or several regions of the globe.

Don’t Underestimate Platinum

Platinum is easy on the eyes, provides considerable utility and can be owned in numerous forms. Many people are surprised to learn platinum bars, coin or bullion exist. As the general public’s knowledge of platinum expands, the value of this precious metal will likely increase. It might take a few months, a few years or longer. You will want to be invested in platinum when it eventually “pops”. In fact, platinum has the potential to outperform gold sooner rather than later. It might not be long until investors looking for a means of wealth preservation pinpoint platinum as a reliable asset that is just as much of a safe haven as gold and silver.

There is a good chance the global demand for vehicle will increase. If auto demand spikes, platinum value will undoubtedly rise as it is required for the manufacturing of catalytic converters. Consider the fact that two of the world’s fastest growing economies, India and China, will require an abundance of automobiles in the near future and beyond. This is excellent news for platinum investors as about 40 percent of the world’s population resides in these two countries. If platinum mine production is disrupted, the price of this precious metal will certainly increase due to an anticipated shortage. It is quite difficult to find platinum outside of South Africa.

Platinum’s Location

Upwards of three-quarters of the global platinum supply is in South Africa. This country is rife with all sorts of problems from labour disputes to violence, power outages in mines and political/social turmoil. If these problems persist or worsen, there is a good chance the mining of platinum will tail off and its value will rise. Invest in platinum today so you can profit from this precious metal’s seemingly inevitable increase in value.

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