Platinum is also a precious metal. It is available in coins, bars, and ingots. Platinum finds use in jewelry, usually as a 90-95% alloy, due to its inertness and shine. In watchmaking, many companies use platinum for producing their limited edition watch series. Watchmakers highly appreciate the unique properties of platinum as it neither tarnishes nor wears out. The price of platinum, like other industrial commodities, is more volatile than that of gold. In recent years the price of platinum ranged from $774 to $2,252 per oz.
Why Invest in Platinum
Platinum has unique chemical and physical properties that make it essential in a wide range of industrial and environmental applications. And yet, it is also considered one of the finest of all jewelry metals. Over 20% of all consumer goods either contain platinum or use it as an integral part of their production.
Platinum is the rarest of precious metals. Roughly 90% of all platinum supplies come from South Africa and Russia. Virtually all of the platinum mined in South Africa is pre-sold to industrial users. Approximately 8 tons of raw ore must be mined to produce just one pure ounce of platinum. Today, the finest and most elegant jewelry contains platinum. Investment platinum is available in the form of bullion products that are produced using platinum. As a consequence, the continued expansion of advanced and developing economies has caused demand for the metal to grow at a faster pace than it is being mined.
Platinum bullion coins are a popular and convenient way to make an investment in platinum. The coins are easy to buy, easy to hold and store, easy to divide, widely recognized, and thus, easy to sell and trade.
10 Facts About Platinum
- Platinum works better than palladium for diesel vehicle pollution control.
- Recent advances in Selective Catalytic Reduction reduce platinum/palladium use in vehicles.
- Jewelry market share for platinum is improving noticeably in Asia and with younger generations.
- During the recent bullish metals cycle, platinum outpaced gold, reaching over $2,200 per ounce.
- A one-ounce pure platinum coin is smaller in size than a one-ounce pure gold coin.
- South Africa mine production fell during most of the past decade and is projected to decline further.
- Although not as malleable as gold, platinum is more ductile and can be better stretched into a wire.
- Replacement supply versus fabrication demand has been generally seeing a surplus.
- About 70% of the world’s mining supply comes from economically unstable South Africa.
- Compounds containing platinum are used in cancer treatment, referred to as “Platinum Chemo.”