Is Today’s Platinum Price Worth It?
Platinum is much rarer than both Gold and Silver — so rare, in fact, that all of the Platinum ever mined could potentially fit in your home. The rarity of Platinum cannot be overstated because it has a vast array of uses, particularly industrial use, including catalytic converters, laboratory equipment and even dentistry equipment.
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. Platinum's value often increases with economic downturns, the devaluation of the U.S. dollar and geopolitical turmoil. Supply and demand also make the price of Platinum attractive.
Platinum is a hot commodity in the manufacturing industry, being highly popular in the construction of cars and various other electronic equipment. As a result, Platinum prices can be directly impacted by the progress of these individual industries.
Almost half of the annual Platinum production goes directly to the automotive industry to help control vehicle emissions. Platinum is likely the catalyst in the ignition of hydrogen in your car’s catalytic converter. High-end jewelry accounts for about a third of the Platinum mined each year. Other, less well-known applications for Platinum include medical machinery electrodes and turbine engines.
The Gold to Platinum Ratio
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.
Precious Metals IRA
Like regular IRAs, any profits on your Platinum investment sales can be tax-deferred as long as the proceeds are kept with your reinvestment custodian or transferred to another IRA account. To qualify for an IRA investment, Platinum must be at least .9995 fine.
From 1 oz rounds to 10 oz 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. Bars are more suitable for buyers looking to build assets quickly, while also frequently featuring elegant designs.
APMEX recommends discussing the pros and cons of investing with a financial advisor or professional.