Gold and Silver are always in the demand for investors rather than other valuable precious metals like Platinum.
If you're new to commodity investing or are curious about ways to start investing in platinum in general, keep reading for 8 of the benefits of investing in this rare metal.
1. Multi-Use
Considered one of the rarest metals in the world, it is utilized all over the world in the automotive, medical, jewelry, and even investment industries. Platinum can be used to connect pacemakers and is also used in the making of catalytic converters. Apart from electronic items like laptops, smart phones, it is also used to power electric vehicles with zero emissions.
2. Market Demand
Multiple industries utilize platinum accounting for this high market demand, edging out what can be volatile investor sentiment. Rather, it relies on actual supply and demand and how the wider economy performs.
3. Material Value
While it does fluctuate based on supply and demand, platinum has increased from a modest price of around $200 per ounce in 1969 to well over $1,000 per ounce in today's market.
4. Malleable
Because of its soft property, it can easily get molded into various products used in motor vehicles, dental work, medical devices, and so on. In addition, it is a metal resistant to corrosion or rust, making it a popular choice for the jewelry industry and alloys.
5. Limited Supply Sources
There are only two places in the world where platinum is primarily mined: South Africa and Russia. With more than half of the global platinum supply mined from these areas, any disruption to the supply chain can drive prices higher.
6. Liquidity
Gold is an extremely liquid commodity. Huge volumes of it get traded on the daily. Because platinum has low liquidity, it is more susceptible to swings in price. In theory, this makes it easier to buy low and sell high.
There is also less platinum in circulation than there is gold. If purchases of platinum rise, the low liquidity makes it easier for the price to rise with fewer buys.
7. Low Risk
Investing in metals can be a low-risk investment as they hold intrinsic value. Because of the finite supply, holding any amount of precious metals in your portfolio can reduce the inherent volatility and risk that comes with investing.
8. Lucrative
With a world shifting away from the use of fossil fuels, renewable energy sources are becoming more dominant. Metals like platinum are crucial in the race for renewable energy and green initiatives will only drive up the prices
