Platinum’s history in the financial segment is but a sliver compared to those of gold and silver. This is partly because of the sheer scarcity of the metal in nature; according to data, mines produce only about 5 million troy ounces of platinum per year.
Compared to gold, which is plucked from mine walls by about 82 million troy ounces per year, platinum production is but a fraction.
The same goes for other precious metals.
However, like most things in life, less can sometimes be more.
Such is often the case when precious metals investing with platinum.
Why Platinum?
Like all precious metals, platinum is a splendid vehicle to adequately hedge your portfolio against the inevitable ebbs and flows of the long-term marketplace.
That is, as the value of other stocks, bonds and commodities begin to dip, and with Wall Street scrambling to recoup losses, platinum and other sure-thing investment objects become the target of a deluge of trader interest, and so increase in value.
What’s interesting about platinum is that, unlike gold, it’s at its most valuable when times are good. According to recent market data, the platinum prices tend to rise in lockstep with that of the surrounding economy – as do those for gold and most other commodities and forms of portfolio stability and diversification.
However, unlike gold, which is often the primary target of panicky investors the second things begin to sour, platinum doesn’t need the rest of the market to tank to excel.
In this way, adding platinum to your portfolio doesn’t become a safeguard as much as it is a megaphone for investment gains during economic boom.
Of course, it will cushion against slides, sudden or otherwise.
And given the popularity and familiarity many investors have with gold, since platinum isn’t the primary investment object among skittish investors, its price doesn’t hold the same advantage over gold when things begin to level off or regress.
Still, that it allows for (1) reliable hedging against a broader economic slide and (2) accentuated gains during an economic boom, platinum has its advantages over gold.
How Do I Invest In Platinum?
If it sounds like a simple question, that’s because it is. Simpler, maybe, is the answer – but that doesn’t mean the question isn’t worth posing or the answer isn’t worth sharing.
Typically, platinum can be had by three means. It can be traded as a commodity on an exchange, purchased by the coin or as part of a platinum-specific account.
Platinum is available on most major stock market exchanges, namely the New York Stock Exchange (with a ticker symbol PPLT) and the London Stock Exchange (under the symbol PHPT). It can also be available on smaller exchanges, though that varies.
Platinum coins are a rare find, given the scarcity of the metal in nature and consequent cost inefficiency to produce coins from it. However, platinum coins are still minted, and can still be found for purchase as precious metals investing.
One easy place to find them: the U.S. Mint, which has sold American Platinum Eagle bullion coins to investors since 1997.
As for its availability in banks, that’s typically a European thing, with most Swiss banks being popular for their offering of platinum as if it were any other currency. Though this may surprise, such accountholders never actually posses the physical platinum. Rather, it is held in the bank’s vault to back the value of each customer’s account.