Why Invest In Platinum
Why Invest In Platinum?
Gold and silver are widely recognized as precious metals; however, it is crucial to note that platinum, the rarest metal of all, holds exceptional value. Despite its relative obscurity, platinum remains one of the most coveted minerals globally, offering lucrative investment opportunities.
According to Trevor Raymond Platinum, Director of Research at the World Platinum Investment Council, the inclusion of platinum in investment portfolios has consistently yielded superior returns, highlighting its significance in diversifying investment portfolios.
Considering the above, the inclusion of platinum in your investment portfolio holds the potential to make a substantial positive impact.
What Is Platinum?
Platinum is a highly coveted and versatile metal that boasts an elegant and dependable silver-white appearance. Its unique combination of resistance to tarnishing, corrosion, and softness renders it valuable in various applications, from jewelry to medical devices and automotive catalysts.
As the third most commonly traded precious metal, following gold and silver, platinum is predominantly sourced from Russia and South Africa. It is typically discovered alongside other metals like chrome, copper, and nickel in global mines.
Josh Simpson, a financial advisor with Lake Advisory Group, notes that political stability in these countries directly impacts the price of platinum. As a result, investors and industry professionals closely monitor the metal’s supply and demand dynamics.
Forms of Platinum
Platinum bullion coins and bars are a vital component of the global metal market and can be acquired by prospective buyers. To begin, it is essential to understand what platinum bullion coins or bars are.
Bullion refers to a considerable quantity of valuable metal that can be purchased as platinum bullion bars or coins from reputable dealers or other parties selling it by weight. In this case, the focus is on platinum bullion
Why Consider Buying Platinum to
Diversify Your Portfolio?
Platinum has represented quality and worth since its discovery in 1735, resonating deeply with our collective conscience. As an intrinsic and organically beautiful metal, platinum is highly sought after. The price of this precious material can vary based on the current market demand, so it is crucial to check the platinum market before making a purchase.
The automotive industry is a significant consumer of platinum, with catalytic converters being a crucial component. These devices help to reduce air pollution from motor vehicles and are becoming increasingly important in creating “green” hydrogen and fuel cells for electric cars. The demand for platinum from the automotive sector is surging as it seeks to minimize its environmental footprint.
According to Rainer Michael Preiss, a Forbes contributor and portfolio strategist, the shift towards clean energy and decarbonization will likely result in platinum surpassing gold in terms of economic importance.
Additionally, platinum is a desirable hard asset during times of economic uncertainty due to its considerably lower price than gold and palladium, as well as its significant short-term and long-term growth potential, according to Paul Wilson, CEO of the World Platinum Investments Council.
Why should you consider incorporating investing in platinum into your precious metals portfolio? Here are some great reasons:
Firstly, platinum has been a highly sought-after material in the industrial sector for decades, which makes it one of the most reliable and desirable precious metals.
Secondly, as a cost-effective alternative to palladium, platinum is a great choice for industrial processes.
Additionally, according to CNN Business, platinum has consistently held a higher value than gold while still being relatively more affordable.
Furthermore, platinum has high liquidity, which makes it easy to buy and sell, making it a valuable asset.
Finally, platinum can be a secure and reliable safeguard from potential risks.
Overall, these factors make platinum an attractive addition to any diversified investment portfolio.