Platinum and palladium are often overlooked by precious metal investors but they are well worth considering, especially if you are looking to hold a mixed portfolio to mitigate risk.
Platinum is relatively scarce when compared with the other precious metals according to Nymex annual new mine production of Platinum is 5 million troy ounces equivalent to 6% of gold mining and 0.9% of all silver mining.
The demand for Platinum is greatest when economies are flourishing and can be double that of gold. In times of economic uncertainty the price will tend to be more depressed. Only about 9 percent of Platinum demand is accounted for through investment channels. This compares with 37% used in catalytic converters and 33% used in jewellery manufacture. Of the Platinum used to produce catalytic converters just 40% is recycled.
Tip: Did you know that your platinum purchase could be VAT free if you opt to store your bars in one of our offshore vaults? Bleyer is a leading provider of insured bullion storage, more information on our vaulting services can be found Here.