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Guide to Investing in Platinum

Published on 1/3/2022 by APMEX

A selection of three famous Platinum coins against a teal background

Platinum is an important Precious Metal because of its diversification to any investor's portfolio and its various industrial uses Platinum investing has been growing in popularity as more and more investors are looking for ways to diversify their Precious Metals investing by choosing metals that haven't had as much publicity as buying Gold or Silver products.

Platinum investing can be considered a good way to protect assets from the pressures of inflation, which is one of the primary functions of investing. The ever-increasing demand for Platinum could be a good way to protect your assets from any future economic disruptions that might occur.

Platinum investing has also increased in popularity due to its ability to diversify investment assets, because it is important to invest in a variety of asset classes. The investing community has been following some advice from financial planners who say that a well-diversified portfolio highlighted by a small allocation to Platinum investing will produce good returns over the long term. When investing in Platinum you have many bullion options available.

It is important to remember that investing always comes with risks and it is up to each person to decide what the best financial strategy is for them. Because investing involves risk, investing in Platinum and other Precious Metals should be seen as an option rather than a necessity.

If investing in Platinum is something that interests you then you should consult with an investing professional who can provide you with more information on whether investing in Platinum will suit your needs. For anyone trying to become more familiar with Platinum investing, here are the most common ways to get started.

Platinum's Industrial Use

Platinum is used in a variety of ways. It can be found in car converters as a catalyst that is used to filter out more harmful chemicals from the exhaust and is also used as a catalyst in plastic and fertilizer production. Platinum can be found in medical instruments, lab equipment, electronic devices and even in some medicines. Also, to no surprise, Platinum is used in jewelry because it is both durable and beautiful.

Its many uses mean that there is a high demand for Platinum across various industries, making it a desirable Precious Metal to invest in.

Purchasing Platinum Bullion

Typically sold in the form of bars and rounds, you oversee storing your Platinum in the location of your choice and selling it or trading it as you see fit. Oftentimes, investing in Platinum bullion is the best way to purchase the metal because it carries a lower premium than Platinum coins.

A popular form of investing in investing Platinum bullion bars. These bars offer the largest investing Platinum coins and thus typically have a lower premium. From 1 oz rounds to 10 oz bars, you easily will find Platinum bullion products that are both beautiful and valuable. Investing in Platinum bars gives you more creative designs to choose from so that you can add something both attractive and practical to your portfolio.

Platinum prices can fluctuate as the supply and demand of the metal shift. It is always important to check Platinum spot price, Palladium spot price, Gold spot price and Silver spot price to make sure you are buying Precious Metals at the most opportune time. 

Purchasing Platinum Coins

The most popular type of investing in Platinum today is investing platinum coins. Platinum coins carry similar value to Platinum bars and rounds in terms of Platinum content but may also carry additional premium based on rarity and collectibility. This type of Platinum investment is preferable to people who enjoy history or art. Consider these top 10 Platinum coins for investment.

This category includes investing in Canadian Maple Leafs from the Royal Canadian Mint, American Eagles from the United States Mint, Australian Platypus from the Perth Mint and more. Additionally, investing platinum coins consequently in various sizes, ranging from 1/10 troy oz investing platinum coins to investing platinum coins that are several ounces of Platinum. This investing method of Platinum is very similar to investing in platinum bars and rounds.

Although investing in rare Platinum investing platinum coins may be a bit more difficult, this type of investing offers the largest returns if you are able to find them. Purchasing rarity investing Platinum can be done by looking into purchasing various investing platinum coins that are sold for investing purposes and not typically available to the general investing public.

Platinum Exchange-Traded Funds

Platinum is the third most heavily traded commodity in the world, after Gold and Silver. Purchasing exchange-traded funds (ETFs) specializing in Platinum is an alternative to purchasing physical Platinum.

ETF investing in Platinum is investing in a financial product that tracks the price of investing platinum. For instance, you may hear someone say investing ETF investing "SPDR Gold Shares" to mean investing in an investing platinum ETF. The reason for this is because the investing currency printed under SPDRs Gold shares is Gold, and the investing Platinum investing ETF follows investing Platinum.

Platinum investing ETFs typically offer Platinum at a lower premium than investing in individual Platinum products. Alternatively, you might find that investing an investing in Platinum ETFs is slightly more expensive due to how it tracks the price of Platinum and any fees associated with purchasing and selling this product.

While not investing in Platinum directly, ETFs can be a successful way to invest in Platinum because it usually allows for more liquidity than building your own portfolio of Platinum.

Platinum Accounts

With an allocated Platinum account, a bank will take your money, purchase real Platinum and store it in a secure location until you are ready to sell. With an unallocated Platinum account, the bank will invest your money in Platinum but will not obtain the actual Precious Metal for storage. When you are ready to cash out, the bank will return your money based on the current price of Platinum compared to when your investment originated.

Platinum investing accounts offer investing investors the opportunity to invest in Platinum and be sure that it is not being held by a person or bank that may not be trustworthy. With investing accounts, you will know exactly how much Platinum you own and can sell at any given time with ease. Additionally, Platinum accounts usually come with a slightly higher premium due to the added security of Platinum investing.

Other investing options for Platinum include investing in art, investing in rare Platinum coins, investing in platinum ETFs and investing in future contracts.

Future Contracts

When you invest in futures, you purchase a contract for a commodity at its current value with the fulfillment of the goods at a later date. Instead of exchanging actual Platinum, you profit on the difference between what you expect the price to be and what the actual future price turns out to be. By investing in Platinum futures, you can purchase Platinum at a lower price and choose to sell it again when the Platinum goes up in value.

Before You Buy

If you choose to buy physical Platinum and have it delivered to you, consider the best storage options for protection from theft and environmental damage. When buying Platinum stocks, it is imperative to research the companies behind your investment.

Whether you invest investing platinum through an investing Platinum account or buy investing platinum ETFs, know the benefits and risks associated with your investment before making any final decisions. Investing Platinum can be a lucrative decision but investing in platinum does require due diligence and thorough research.

Key Takeaways

Platinum is a widely used Precious Metal that provides an excellent vehicle for investment, especially for those wanting to diversify their portfolios. It can be purchased in bar or coin form, as an ETF, or a future contract. Additionally, Platinum can be kept in an allocated Platinum bank account.

Before purchasing this Precious Metal, it is vital that you research how Platinum is doing in the market, what its spot price is, and that you consult with a financial advisor.

APMEX recommends discussing the pros and cons of investing with a financial adviser or professional.

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