Platinum is a member of the platinum group metals (PGMs) and is a popular investment option for clients looking to buy physical platinum bars and coins. Almost all world platinum supply is mined in South Africa and Russia, making the metal price particularly sensitive to economic and labour conditions in those markets. Annual platinum production worldwide is significantly less than gold. Physical platinum is available in both bars and coins, in sizes ranging from 1 gram to 1 kilogram. Platinum is available for VAT-exempt storage in Switzerland or for delivery worldwide.
When it comes to precious metals, most people invest in either gold or silver. However, there are other precious metals worth considering, including platinum. Traditionally platinum trades at a higher price than gold. This is one reason investors jump to buy platinum every time its price dips below that of gold.
What is Platinum?
Platinum’s name comes from the Spanish word ‘platina’, which means “little silver”. Spanish explorers first discovered platinum in 1735. By 1774, Platinum was a recognized element, and added to the periodical table. To be more precise, Platinum has the chemical symbol Pt and atomic number 78.
Platinum is found in many places, including Africa, Columbia, the USA and Russia. It is normally found with other metals of the Platinum Metal Group. These include Palladium, Rhodium, Iridium, Ruthenium, and Osmium.
It is a valuable and rare metal. Consider that annual Platinum production is only around 8 million ounces, which is approximately 10% of the annual gold production.
The Platinum Price
Historically, Platinum has been a reliable investment. Indeed, the price of this precious metal peaked in March 2008. Since then, however, things have changed as the price has decreased due to the increased demand for palladium.
Nevertheless, it is still worth adding to a portfolio. Platinum’s as part of a long-term investment strategy is very different from the short-term one. If you notice the pattern of Platinum’s price movement, you will realize that Platinum can offer you a significant advantage as a short-time investment.
Factors that Affect Platinum’s Price
The biggest factor affecting Platinum’s price is its limited supply. Platinum is much more rare than gold or silver. Furthermore, 90% of its supply originates from Africa and Russia. This metal is also very expensive and capital intensive to mine.
Industrial demand also plays a big role in Platinum’s price. Namely, Platinum is used extensively in cars and electronics. This results in shifts in platinum’s price in line with industry demand and performance.
Industrial Uses of Platinum
The two main areas of demand for platinum are in jewelry and cars. These amount to 76% of the total Platinum use.
However, there many other industries where Platinum is used. It is found in the chemical industry as a catalyst, in electronics, in glass manufacturing, in petroleum refining, in medical equipment and implants, in fertilizers, in industrial sensors, and as a coating for other metals. It is even used in the treatment of cancer.
Investment platinum comes in the form of bars and coins. The most popular sizes available are 1 ounce and 10 ounce. Today, most major governments that produce precious metal coins also produce a platinum coin. Several were released in 2016, including the platinum Kangaroo, platinum Krugerrand and the platinum Philharmonic. Some other major refineries, such as the Royal Canadian Mint, the Royal Mint and the US Mint have issued platinum coins for longer. The most popular platinum coin is the platinum Maple Leaf. Platinum bars are produced by many of the major refineries. The most popular bars for investors are PAMP, Credit Suisse and Valcambi platinum bars. Bars are available in a range of sizes, but the most popular by far is the 1 Ounce bar. All platinum bars and coins sold by SwissBullion.ch are 999.5 fine.
Platinum Delivery and Storage
Platinum can be purchased from SwissBullion.ch for delivery or for storage in Switzerland. VAT-exempt Swiss storage allows clients to increase their chances of profiting on their purchase, as they are not required to pay an additional 20% over the purchase price. Clients that select to store their platinum in Zurich may sell it back to SwissBullion.ch at favorable rates at any time, or also request delivery.