Investing in precious metals is associated primarily with gold, sometimes we treat silver as an alternative. Meanwhile, still relatively few people realize that investment platinum can also be a very attractive option. Read what it's worth knowing about investing in platinum, what to watch out for and how to earn money in this way.
Why invest in platinum?
There are many indications that investing in platinum can now be beneficial. Platinum prices are similar to gold, but platinum is fifteen times less expensive. The politically unstable region (South Africa, Zimbabwe) accounts for more than 80% of global platinum extraction. It can be expected that in the future the deficit of this raw material on the market will deepen, which will result in an increase in its prices. This trend may also be reinforced by increasing use.
Specificity of the platinum market
87% of all known platinum deposits are located in South Africa, which is responsible for 73% of global production of this raw material (13% Russia, 7% Zimbabwe.) The platinum market is dominated by the three largest corporations: Anglo American Platinum, Impala Platinum and Lomin.
In the industry platinum is mainly used in the construction of catalysts for diesel cars. It is this goal that accounts for as much as 40% of demand. We can expect the demand for platinum for catalysts to increase in the future due to the increased emphasis on environmental issues, which will translate into higher prices.
What should I watch out for when I invest in platinum?
When buying platinum bars and investment coins, always keep in mind that this may entail the risk of a decline in their value in the future. Although the outlook now looks very tempting, it can never be entirely ruled out that in a few years' time, for example, as a result of a crash on the market, the value of coins or bars purchased will fall. In the long term, however, we can expect tangible benefits.
Currently, when buying investment bars and coins, one should expect that the platinum market in Poland is underdeveloped - this means that there are not many opportunities to sell bars or coins at good prices yet. In this respect, the platinum market in Poland now resembles the silver market a few years ago. At the same time, we can expect that in a few years the market will develop significantly and prices will increase. For this reason it is worth buying platinum now and treat it as a long-term deposit.
How to buy platinum to earn money on it?
Platinum in the form of investment bars and coins is an excellent form of capital investment, however, purchases should be made only from reputable dealers, such as 79th Element. This is the only way we can be sure that we have purchased platinum of the highest quality. In addition, platinum bars with attractive design are a real treat for numismatics. It may be a good idea to give a platinum coin to a child for an important occasion like a wedding - it will be both a unique souvenir and a protection of the future.