Platinum shares a kinship with silver in that both metals are simultaneously industrial metals and precious metals. This creates interesting dynamics in the supply and demand for platinum in ways that differ from gold.

Platinum shares a kinship with silver in that both metals are simultaneously industrial metals and precious metals. This creates interesting dynamics in the supply and demand for platinum in ways that differ from gold.

Yet the platinum price still stands out for its history of typically trading close to parity with gold. In fact, platinum has historically traded at a higher price than its precious metal counterpart, only falling below gold in early 2015. It has yet to reclaim the higher ground since.

Especially for precious metal investors who are closely watching the gold-platinum ratio in search of opportunities, the upside of adding platinum bullion to one’s portfolio is matched by the many options that are now available for buying investment-grade platinum.

Options Abound

As mentioned above, platinum’s primary source of demand comes from industry. It is an extremely useful metal for the catalytic converters in automobiles that help filter air pollution. This is why an increase in car sales typically supports higher demand for platinum.

Source: Gainsville News

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