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Precious Metals Investments in Platinum

Section: Economy

Platinum is on fire now because there are increasing supply problems that are greatly increasing the demand of this pure metal.  When you are considering a precious metals investment, do your research on platinum.  You want to make sure that you are getting into investing in this precious metal the right way so that you can experience the maximum amount of benefits.  For example, you want to ensure that you are working with a reputable dealer that has a quality supply and a price that aligns well with the current value of this metal.

Before diving into precious metals investments in platinum, look at the projected outlook.  At this time the outlook is very good due to the volatile nature of where the majority of this metal comes from.  80 percent of the reserves throughout the world are in South Africa and 70 percent of the platinum that is found throughout the world comes from this country.

Platinum Versus Gold
Gold remains the most popular type of metal for precious metals investments.  About 10 years ago, few people invested in platinum because it was severely expensive and it was more than twice the price of gold.  As the platinum manufacturing industry experienced an increasing global recession, the prices started to come down to a level that made this metal a smart investment.  Until economic recovery becomes steady, platinum prices are expected to stay low, at just slightly more per gram than gold.  This means that the low prices make this an ideal time to invest in this pure metal because the prices are expected shoot back up again.  If you can get in now, you can enjoy a hike in the value of what you own at some point in the relatively near future.

Platinum Uses
Many different industries use platinum for various products and technologies.  Before you start investing in this metal, you want to understand what the uses are.  Precious metals investments work best when the investor understands what he or she is investing in.  For example, if you understand how the metal is used, you can better follow how and why the value either decreases or increases because the value of precious metals are highly related to the demand for the metal.  The various uses of platinum include:

  • The automotive industry for catalytic converters
  • Fuel cells for more modern vehicles
  • The jewelry industry for earrings, bracelets, rings, and necklaces
  • Many industrial uses

Platinum Outlook
Precious metals investments are said to be investments that are both safe and smart.  This is because these tend to hold value better than other types of stocks.  Many experienced investors add platinum and other precious metals to their investment portfolio to diversify it and to increase its total value.  Platinum will always have at least some value because it cannot drop below a certain number.  Therefore, even when values are fluctuating, you can rest assured that your investment is at least worth something and that it will eventually bounce back, regardless of the various economic conditions throughout the world.

Right now is a good time to invest in this metal because of the labor unrest that continues to plague South Africa.  This has resulted in a scenario where the supply is dwindling as the demand increases.  This means that people want to get their hands on this metal and they are willing to pay for it.  Investment experts are telling investors to invest now because as the value climbs, it increases how much money you will need to invest to buy some of this metal.