In the 18th century, platinum’s rarity made King Louis XV of France declare it the only metal fit for a king.
Platinum is a chemical element with the symbol Pt and atomic number 78. It’s a dense, malleable, silverish-white transition metal. Its name is derived from the Spanish term “platina,” meaning “little silver.”
Platinum has unique properties that make it essential to the production of catalytic converters, laboratory equipment, electrical contacts and electrodes, platinum resistance thermometers, and dentistry equipment, not to mention jewelry. Should I buy platinum as an investment? Yes, many experts believe that platinum’s scarcity, combined with its many use cases, makes it a high-potential investment with incredible opportunities for growth.
Being a heavy metal, platinum causes health problems upon exposure to its salts. But due to its corrosion resistance, metallic platinum has not been linked to adverse health effects. Compounds containing platinum, such as cisplatin, oxaliplatin, and carboplatin, are applied in chemotherapy against certain types of cancer.
The most common use of platinum is as a catalyst in a chemical reaction. It has been employed as a catalyst since the early 19th century when platinum powder was used to catalyze the ignition of hydrogen.
Should I buy platinum for its demand in the automotive industry? Many knowledgeable investors seek out platinum because its most important and prominent application is in automobiles as a catalytic converter, which allows the complete combustion of low concentrations of unburned hydrocarbons from the exhaust into carbon dioxide and water vapor. Platinum is also used in the petroleum industry as a catalyst in many processes.
Platinum is relatively scarce, even among precious metals. New mine production totals approximately five million troy ounces a year. In contrast, gold mine production runs approximately 82 million ounces a year, and silver production is approximately 547 million ounces.
You might be wondering, should I buy platinum now or later? Given that the production of platinum is much smaller than gold or silver, investors diversify their precious metals holdings into platinum because of the limited amounts available. Platinum is a finite material, so as more and more investors stake their claims, the price is likely to rise.
Platinum finds use in jewelry, usually as a 90–95% alloy, due to its inertness. It’s used for this purpose because of its prestige, radiant luster, and inherent bullion value. Jewelry trade publications advise jewelers to present minute surface scratches (patina) as a desirable feature to enhance the value of platinum products. Should I buy platinum jewelry instead of bullion? Jewelry comes with a significant markup. So if your goal is to invest in platinum, bullion coins or bars are much better options.
Asset allocation is essential to creating a diverse portfolio, which has a greater chance of meeting your investment goals. Should I purchase platinum to add diversity to my portfolio? Absolutely. A well-diversified portfolio with tangible assets offers stability when intangible assets like stocks perform poorly. Additionally, the high industrial demand for platinum makes it very attractive as a long-term hold.
During periods of sustained economic stability and growth, the price of platinum tends to be as much as twice the price of gold. But during periods of economic uncertainty, platinum prices tend to decrease due to reduced industrial demand, falling below the price of gold.
Should I buy platinum or gold? Both offer unique pros and cons. We recommend weighing current economic conditions and making educated guesses on what the future holds. Platinum is a good investment during an economic downturn if you believe the economy will improve in the future because you can buy it at a great price and then watch its value skyrocket. Gold prices are more stable in slow economic times, as gold is considered a safe haven. Although gold is used in industrial applications, its demand is not so driven by industrial uses.
The experts at Endeavor Metals are here to help you make the best decision. If you’re interested in purchasing platinum, let’s talk. We understand that investors have their own financial goals, so we want to make sure you’re making an informed decision. Platinum can be an excellent investment, but you may find that gold, silver, or even a precious metals IRA, more closely meets your needs.
Should I buy platinum from Endeavor Metals? We’re proud to be a Tier 1 precious metals dealer with an A+ Better Business Bureau accreditation and a 4.9 Google star rating. We consistently go above and beyond for our clients and offer a 7-day, 100% money-back guarantee, even if the market has a downturn. If you believe platinum is a good investment for your portfolio, purchase our platinum bullion coins and bars with full confidence.
Diversify your portfolio into a tangible asset with endless room for growth.Contact us today at 855.753.3575