Guide to Platinum Investing
Platinum is an important Precious Metal because of its diversification to any investor's portfolio and its various industrial uses. For anyone trying to become more familiar with Platinum investing, here are the most common ways to get started:
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. From 1 oz rounds to 10 oz bars, you easily will find Platinum bullion products that are both beautiful and valuable. The price of Platinum bullion fluctuates with the Platinum spot price.
Purchasing 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.
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.
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.
When you invest in futures, you purchase a contract for a commodity at its current value with 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.
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.
APMEX recommends discussing the pros and cons of investing with a financial adviser or professional.