Why buy Platinum?

As one of the top precious metals, platinum provides an asset for investors that has a low correlation to traditional assets. During market uncertainties and economic recoveries, safe-haven assets like platinum often provide stronger performance over stocks and currencies. Platinum also sets itself apart from the other precious metals because the demand for it comes in four distinct ways:

• Industrial - Platinum is used for making medical equipment, fertilizer, and biomedicine products.
• Automotive - Used in automotive exhaust systems, platinum plays an important role in helping to decrease emissions in the face of stricter standards and higher demand for cars from emerging markets.
• Jewelry - Jewelry making accounts for roughly 33% of platinum’s global demand. Resistant to corrosion, this precious metal is often paired with other metals such as gold to reduce tarnishing and add strength.
• Investments - As a safe haven asset, interest in accumulating Platinum bars and coins has grown in demand, particularly in Asia.

Platinum is an extremely dense metal but is also very malleable. A six-inch cube of platinum weighs the same as the average human, and the precious metal can be pressed and shaped extensively without ever breaking or losing its strength. But while it has a great usability in various industries, its use as an investment is what stands out in recent times.

Why do people invest in platinum?

With a supply lower than gold, platinum is also much more difficult and costly to extract than gold. It’s also almost twice as heavy. When you buy platinum online, you know the precious metal is steadily growing in demand, with investors more interested than ever due to the recent economic downturn. Like other safe-haven assets, platinum has a low correlation rate with traditional investments, so when other parts of your portfolio are suffering during recessionary times, platinum’s increased demand often causes its price to rise.

Should I Buy Physical Platinum or Paper?

Paper platinum comes in the form of ETFs, futures, and derivatives. With ETFs, you never actually take ownership of the platinum because you are buying into a fund. With futures and derivatives, instead of investing in and owning the physical platinum immediately, you are instead buying a contract to buy or sell it at a later date, with a 3rd party brokerage providing the service. By buying physical platinum online, you actually take physical ownership immediately and can avoid 3rd party counterrisk and extra brokerage fees.

How Can I Buy Platinum?

There are two main ways to buy platinum online, Bullion Bars and Coins:

• Bullion Bars - Also known as Platinum Ingots, Platinum bullion bars are easy to buy, sell and store. They are traded globally and considered a hard asset for investors wanting to diversify assets and protect from currency devaluation. Purity is guaranteed by the company minting the platinum. By buying bullion bars, Platinum investors get the lowest cost per troy ounce of the precious metal.
• Coins - Among other countries, the United States and Canada both mint Platinum coins, which are easy to hold, divide and trade. Each coin is considered legal tender and the purity is guaranteed by the corresponding mint.

Platinum, which is far more rare than gold or silver, provides a hard asset for investors that helps to hedge against volatile markets, devaluation of national currencies, inflation, and geo-political risks.