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”.
Covid-19 Impact
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.
Significance of investing in platinum coins
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.
Top 5 reasons why you should consider investing in
platinum coins.
1. Rarity and Exclusivity
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.
2. Industrial Demand
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.
3. Investment Diversification
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.
4. Historical Performance And Growth
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.
5. Collectibility and Numismatic Potential
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.
Conclusion
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!
