Why invest in Platinum, not gold? You don’t have to choose between platinum and gold, but you should invest in platinum along with gold. Platinum down the line can provide you with profitable returns, just not as quickly as gold can. Even then, it shouldn’t be neglected as a precious metal with no value. If history has told us anything about platinum, it’s that it’s known as a strategic metal because it’s an industrial metal and only a limited number of sources supply it, which increases its value.
South Africa and the former Soviet Union, now Russia supplies 90% of the world’s platinum with Canada producing 5%. Due to the limited supply of platinum, it has earned the tag of being one of the rarest metals so rare that one time, United States had to hold platinum, until the economic situation settled down, as they use platinum to make a variety of different things. This has resulted in the price of platinum to increase. Additionally, it goes through a refining process to recover the tiniest amount of metal from ore, similar to what nickel, which also influences its price.
The Value of Platinum Overtime
Even though platinum isn’t in the same league as gold or silver, it shouldn’t be considered as a bad investment. Over the years, platinum has shown a significant increase in value in which it went as high as $1100. With platinum, it’s a case of supply and demand. Investors want a piece of the precious metal because it’s limited and rare, which in return raises its value. If you ask an experienced investor if they have invested in platinum, they will likely say yes. Do you know why?
Platinum just like its counter parts silver and gold is considered a superb investment because it provides you with the security against inflation and provides you with short or long-term investment, but mainly long, as it takes time for the price of platinum to increase.
When Should You Sell Your Platinum?
As discussed previously, the price of platinum is affected by supply and demand, which dictates its market value. What you should be on the lookout for if you have invested in platinum is the stability of the economy. If the economy is stable, the value of platinum will increase, surpassing gold. If it’s the other way around, platinum will decrease in value, decreasing below the value of gold.
The increased prices of gold also play a factor in decreased value of platinum in the market as well. Therefore, many think it’s a failed investment, as gold is usually high and economy nowadays seems not to be improving. Still, as a long-term investment to protect your future, platinum is a fabulous investment.
Even with the positives of investing in platinum, people will still see it as a risk and will wonder if that risk is worth taking? The risk is worth taking because we are not telling you to purchase only platinum, but other precious metals along with it.