Learn About the Value, Supply, and Benefits of Investing in Platinum
No one understands your budget better than you. By extension, you can make the purchase that best suits your budget and your investment goals. It is essential to have an understanding of all your options when investing in Precious Metals. Let’s explore the benefits of purchasing Platinum.
Traditionally, Platinum has been more valuable than Gold. In fact, when we compare the past 50 years of price history between the two metals, Platinum has more often traded at a higher price than Gold. This is not the case now.
The Gold to Platinum ratio indicates how much Platinum it takes to buy Gold. It indicates the relative strength of Gold prices compared with Platinum prices. Investors can use the ratio as a timing indicator when deciding when to buy Gold or Platinum. Platinum has become one of the most intriguing metals because it has historically traded at a higher price than Gold. That is an indication of two things, Platinum being rarer than Gold and having more industrial uses.
The value of Platinum has continued to grow. Platinum is considered one of the most valuable Precious Metals due to its rarity and essential significance in both the economic and automotive industries. Platinum is much rarer than Gold. If Gold mining ceased today, the Gold we have would last for about twenty-five years. If Platinum mining stopped today, the supply would meet the demand for about one year.
Platinum’s Supply & Demand
The demand for Platinum currently outweighs the supply. The strong demand for Platinum in the automotive industry and sustained investment demand put supply well above demand, according to the World Platinum Investment Council’s Platinum Quarterly in the third quarter of 2020.
Platinum is primarily used in the automotive industry as a critical component of the catalytic converter, which helps reduce the toxicity of the emissions produced by the exhaust. It is also used to produce jewelry, chemical production, petroleum refining, and electrical applications, such as hard drive disks. High-end jewelry accounts for about a third of the Platinum mined each year. Other lesser-known applications for Platinum include medical machinery electrodes and turbine engines.
Production of Platinum decreased in 2020, according to the preliminary data released by the U.S. Geological Survey (USGS). One hundred seventy thousand kilograms of Platinum was produced in 2020, a 9% decline compared to 2019. USGS said that lower production of Platinum in South Africa resulted from temporary lockdowns related to the COVID-19 pandemic.
One of the most important reasons people buy Platinum is because it helps balance their portfolio. Some investors are comfortable buying what they know, such as Gold or Silver. However, investors looking for an edge know they need to look to under-tapped markets like Platinum.
Buying Platinum on APMEX.com
From 1 gram to 1 kilo Platinum bars, you easily will find Platinum bullion products that are both beautiful and valuable. Rounds are easy to manage and store, produced with many designs inspired by sought-after historic coins. Platinum bars are more suitable for buyers looking to build assets quickly, but frequently feature elegant designs for collectors who want to keep them on display. APMEX has a wide selection of investor-favorite Platinum products. Trusted Platinum products from popular brands are now available, offering options for budgets of all sizes.
Shop our selection of Platinum products and find the coins, rounds, and bars today.