There is a reason High Street Banks have often called their higher income account their “Platinum Account.” The word Platinum is synonymous with high value, timeless quality and trusted investment.
Ironically, the true parallel between the valuable precious metal and a currency placed in a fractional reserve banking system is tenuous at best. None the less, word association is a powerful marketing tool. This week we’re going to explore 5 facts about investing in Platinum:
1) History and origins
Although now used in jewellery, wire and electrical contacts, when Spanish explorers first came across the metal during a 16th-century expedition in Colombia, they were unaware of its value. They gave it the name “platina,” or little silver, and thought it nothing more than an unwanted impurity in Silver and Gold mining. Platinum had little value until the 18th century and it wasn’t until the 19th century that a method of producing malleable Platinum was found and catalytic properties of the metal were studied. In 1842, the first fuel cell was devised using platinum electrodes. Since the mid-20th century, Platinum has been used to increase octane ratings in gasoline and proven to be an important component in the rapidly-expanding plastics industry. In the 1960s, the metal quickly gained popularity as jewellery with rising demand in the following decades across Asia, Europe and the US. Platinum became popular in the 1970s in the US after new regulations on air quality led to the metal being used as a catalyst, converting noxious gases into safe substances in car exhausts. South Africa and Russia are now the two largest producers of platinum in the world, the former producing 60% of world supply. This precious metal is also mined in the US, South America, and Canada. (Investing News)
2) A Rising Industrial Metal
Over the last year or so, prices for safe-haven metals like Gold have reflected a new atmosphere. The kind of hyperinflationary scenarios predicted by wave after wave of global easing programs (Quantitative Easing) still haven’t yet materialised. Meanwhile, an illusion of a strengthening global economy has meant rising equity and bond prices at the expense of precious metals. So why invest in precious metals? The white metals of Silver, Palladium and Platinum are just as much about rising industrial production and global growth as they are about hedging against inflation or providing a safe-haven investment. For investors, the white metals can capture much of the upside in the global economy as well provide some downside protection in case the fudge really hits the fan. Investors should act quickly, though. (Investopedia)
3) Current Price vs. Palladium
Platinum is currently sitting at almost the exact price of Palladium. But of the two metals, Platinum has enjoyed a wilder ride, for example, most markedly seen in the years leading up to the last financial crash. Bear this in mind when researching if this is the precious metals investment for you.
4) Platinum vs. Gold Price
In many ways, it is unfair to compare these two metals, as one is industrial and the other; a purely investment and safe haven metal. Yet markets compare Gold and Silver, regardless of this disparity, on a daily basis.
By comparison to Gold, historically, Platinum appears a calmer, steadier investment. But thorough research needs to be undertaken before investing in any precious metal. In addition, the very factors that increase the price of Gold (geopolitical tension, currency devaluation, natural disaster, war) have the potential to inversely affect the price of the predominantly industrial metal Platinum.
5) Bars or Coins
Having said that, a broad portfolio of Precious Metals is always something to consider. Bleyer offers the option of investing in either Platinum Coins or Platinum Bars of 1oz, 5oz, 100g, 250g, 500g, 1kg and a limited stock of pre-owned 50g Platinum bars at truly knock-down prices. The most popular Platinum coins are:
- 1oz Canadian Maple
- 1oz Queen's Beasts Griffin (limited edition coin expected October 2017)
- 1oz Queen's Beasts Lion
- 1oz Australian Platypus
Take a look at current investment opportunities in Platinum. As always, it is recommended that readers conduct their own additional research before investing in precious metals. Call or email Bleyer now to start or increase your investments in actual Physical Precious Metals you can hold or store. Call us on 01769 618618 or email [email protected]