Things You Need To Know If You Are Planning To Invest In Platinum

Platinum has a short investment history compared to precious metals like gold and silver. It is 15-20 times scarcer than gold based on the annual mine production. South Africa leads in global platinum mining, as 75% is mined there. Its scarcity can make it a lucrative investment option.

Similar to other investment options, the price of platinum changes based on the demand and supply chain. During sustained growth and economic stability, platinum prices become twice that of gold. There are more than one reasons to invest in platinum; please keep reading to learn more.

A Few Reasons to Invest in Platinum

A long-term platinum price chart reflects significant returns by investing in platinum. It has, time and again, proved to be a lucrative investment deal. Here are a few reasons to buy platinum.

It is Extremely Oversold

Platinum is highly oversold at particular price levels. However, it cannot remain highly oversold for a more extended period and proves to be a rewarding investment strategy.

Growing Demand from Hydrogen Economy

The global hydrogen economy has been underestimated. However, the demand curve for platinum demonstrates substantial growth. The hydrogen economy will have a growing demand for metal by 2030. As a result, the already constrained market will be further tightened.

Advances in Hydrogen Fuel Cell Vehicle

Hydrogen fuel cell cars have been on the market for quite some time. However, currently, there is a rapid advancement in hydrogen fuel cell technologies for electric motors. Instead of relying on batteries, they depend on stored hydrogen that again needs platinum.

Different Ways to Buy Platinum

Exchange-traded Products

Platinum is traded as an exchange-traded product or ETF. While these prices fluctuate, they must not be confused with stocks. They can be bought and sold and are different from mutual funds. Global X Physical Platinum (ETPMPT) in Australia can provide investment results.

Coins and Bars

You can easily purchase the metal in the form of bars and coins available in different weight categories. A few options include ABC Platinum Minted Bar – 100g, ABC Platinum Minted Bar – 1kg, ABC Platinum Minted Bar – 50g, etc. The varieties are few considering the difficulty in working and the costs involved.

Futures

A future contract is another way to invest. A predetermined place and time are set to buy or sell the precious metal. The transaction is not a right but an obligation. However, there is a fixed or minimum contract size when it comes to futures.

Apart from the methods mentioned above, contracts for difference and spread betting are also a few ways to invest in platinum. You can also invest in shares of mining companies that offer substantial platinum exposure.

How To Choose A Buyer?

With the advent of online services, investing in precious metals like platinum has become more accessible. However, it is essential to research and pick a reliable service provider, whether to buy or sell. Remember these tips before making an investment decision.

• It is suggested to select a trusted dealer that has a global reputation. It will ensure the quality and purity of a product.
• Select a secure platform that is believed to be reliable. Look at the number of loyal customers the provider has around the globe.
• Remember to choose a dealer providing ethically sourced precious metals.

Bottom Line

It can be easy to overlook platinum when contemplating investment options for precious metals. However, there are multiple reasons to invest in metal for rewarding returns. From coins to futures, there are more ways than one to enter the market. So, look for an experienced and reliable service provider for the best investment experience.