Hello, savvy investors!
While you have obviously considered buying silver and gold bullion products, have you ever wondered why buy platinum coins? Well, hold on to your hats because today we are going to spill the beans on what sets platinum bullion coins apart from their elder siblings!
Investor interest in platinum has shifted noticeably, with its position in global markets constantly increasing.
Though rarer than gold, platinum has slightly less market value than yellow metal. However, the scarcity of its overall presence in the earth's crust and its continuous employment in various industries is slowly driving its market value.
It's used a lot in industries like making cars cleaner and jewelry. Politics and supply and demand can make the price go up or down. Most platinum mines are in only two countries: South Africa and Russia. This could mean that these countries might work together to control platinum prices.
Precious metal investors are now also choosing platinum for their portfolio. Let's dig deeper into the topic "Platinum as a lucrative investment option." and “Why buy platinum coins”.
Although COVID-19 had a major negative effect on the platinum market, lowering prices, demand, and supply, the effects were not as bad as feared.
Platinum prices dropped in March 2020, along with stocks and other metals, with reductions of 10% to 35%. China's platinum demand dropped during the early part of the quarter. Additionally, a smelting issue in South Africa and mine closures due to the virus further decreased platinum supply for the quarter.
Along with the Pandemic, other factors also affected platinum prices. They are: scarcity of supplies, automobile platinum-palladium substitution dynamics in general, and demand swings from the automotive, commercial, and jewelry sectors.
While facing obstacles, the platinum industry is projected to rise from 8.14 million ounces in 2024 to 10.15 million ounces by 2029, with a CAGR of 4.52%. The supply-side gap has persisted in previous years and will certainly remain in 2024.
As platinum demand has surged from the post pandemic, one might question why buy platinum coins over bars.
If buying platinum is trending now, then you may first think of platinum bars. Bars are appealing, but coins are more liquid and divisible, therefore appealing to buyers. Especially as the platinum industry bounced back from a brief dip caused by the pandemic in 2020, experts predict demand is still increasing.
So, while you invest in gold and silver, platinum presents itself as a familiar yet promising investment opportunity.
Platinum's constantly enhancing marketplace value is one of its main attractions since it is directly related to its demand. Because of its longevity, brilliance, and toughness, platinum is utilized in dentistry for inlays, bridge reconstruction, and crowns.
Platinum jewelry is also assured to endure for an eternity.
BOLD Precious Metals is a highly sought-after platform for purchasing tangible platinum coins and bars due to our competitive prices and large volume of orders. If you'd like to discover how to include platinum coins in your investment portfolio, read our 'Investing Guide' or call our Account Representatives.
Platinum is much rarer than gold and silver, with mining operations only taking place in Russia and South Africa. Due to its limited availability, platinum maintains its value easily, as additional mining efforts would only serve to increase its scarcity.
This scarcity makes platinum a precious metal and prevents it from becoming a more common commodity. Moreover, the number of platinum bullion products is also limited in number while compared with that of gold and silver.
This exclusivity makes platinum bullion products more valuable for investment purposes.
Manufacturing companies make huge acquisitions of platinum bars to use them in the manufacturing process. This makes a steady supply of platinum important for these industries. In addition to manufacturing, platinum finds application in electronics such as laptops and smartphones.
The automotive industry represents another significant consumer of platinum, particularly as the demand for environmentally sustainable transportation options grows.
Many manufacturers are inclining towards platinum in a bid to reduce emissions, further driving its demand in this sector.
Investing our hard-earned money always involves risk. However, in times of uncertainty, relying solely on our current financial system carries significant risk, too.
Precious metals offer a low-risk investment option because their value is almost certain to endure. Whether due to their rarity, versatility, or growing demand, platinum, in particular, will consistently remain highly sought-after.
Ultimately, platinum stands out as a low-risk addition to your investment portfolio.
Its enduring value makes it a reliable choice for safeguarding your finances in unpredictable times.
Platinum has generally shown an upward trend over the long term, with fluctuations along the way but an overall increase in value.
Platinum is currently oversold from a technical perspective at its current price levels. Over the past 18 years, purchasing platinum bars at low to mid-US $800 (per Troy ounce) has proven to be a successful investment strategy, although it's possible for platinum to remain oversold for an extended period. Also, when compared to gold, platinum tends to experience higher volatility, meaning its price can fluctuate more dramatically in response to market forces.
The projected growth of the global platinum market to USD 9.6 billion by 2027 is fueled by growing consumption from multiple sectors such as automotive, jewelry, and manufacturing.
Platinum coins, especially those produced by well-known mints or limited editions released in years like 2021 or 2022, can carry substantial collectible value.
The origins of platinum coins trace back to Russia between 1828 and 1845, when the first ones were mined and put into circulation. In 1988, the Royal Canadian Mint and the Australian Perth Mint commenced minting platinum coins. This contributed to the expansion of the market for these precious metal collectibles.
So, considering why buy platinum coins when they have historical and monetary worth?
The answer is- it has higher collectibility and numismatic potential. Whether you choose to purchase platinum coins such as Perth Dragon or American Eagles, both offer a combination of investment potential and collectible value.
When comparing the success of platinum and silver as investments, three key factors stand out: supply, demand, and timing.
Silver, which is more abundant than platinum naturally, is generally more affordable per ounce.
Over the past year, silver prices fluctuated from just over $18 to a high of $26, ending around $23 by late 2023. In contrast, platinum prices moved from $881 to $904 during the same period, peaking at $1,138 along the way.
Platinum's future market trends show promise, particularly in the hydrogen-fueled vehicle sector, where its usage is anticipated to increase significantly.
On the other hand, silvers’ utility improved its demand across sectors, driven by advancements in technology and the steep demand for green energy solutions. Investing in silver offers a multitude of advantages, such as acting as a store of wealth during inflation periods and ensuring portfolio diversification.
However, it lacks dividend payouts and may experience declines during economic downturns. Platinum, on the other hand, offers diversification, high industrial demand, and the potential for high returns due to price volatility.
With their historical performance, growth potential, and enduring allure, platinum coins represent a valuable addition to any diversified investment portfolio. Get started with bullion products like Platinum coins or bars and slowly diversify your precious metal investment portfolio, only with BOLD Precious Metals!
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