A Beginner’s Guide to Investing in Platinum


Investing in precious metals brings more capital return than any other stock market investments. This is because they provide more capital appreciation when the market becomes volatile in the face of economic slumps. Putting your stake, particularly in platinum, can provide you with an increased return because of its marketable quality and industry use. 

Between gold, silver, and platinum, the latter is the rarest. The silvery-white element is used in many industries, including the electronics market, the medical field, and the jewellery industry. Its use in most of the industries makes it one of the most viable investments to boost your portfolio.

The question, though, lies with how to start a precious metal investment as it often does not conform to the traditional money market strategies.  

Starting an Investment in Platinum

Platinum is one of the most popular investments because of its extensive use to a lot of industries. The question of starting with precious metal investment does not start with how much to put on stake but deciding which metal to purchase.

Though gold and silver offer the most liquid investment product, platinum is also one of the most used and valuable. For those who have decided on which metal, the question on how to start investing remains. 

For starting investors, there are a variety of investment products a potential platinum owner can take advantage of. 

  • Bullion coins. Investing in commemorative platinum coins is one of the most popular methods of acquiring precious metals. They usually are smaller in size and offer a low investment outlay. The only consideration for bullion coins is getting high-quality coins, which has a better premium than its face value.
  • Platinum bars. Platinum bars cost higher than bullion coins. They are also a better way of investing in precious metals because of their purity. Although, the market value of platinum bars is affected by its lack of sentimental value, which is sometimes only present in minted coins. 
  • Exchange-traded funds. An ETF investment is a type of stock fund which is sold in shares corresponding to the amount of physical platinum. This asset allows traders to invest in precious metal without the costs of a premium, storage and acquiring the metal.

Choosing the Right Platinum Investment 

Choosing the right form of platinum investment mostly falls on your capacity to hold on to your capital. For starting investors with a limited financial asset, bullion coins offer a safer and better way of getting a return of investment. 

But for investors with a great deal of capital, platinum bars are more fitting. The only problem, though, is looking for a storage space to house your investments. Platinum bars are often cumbersome to some investors and opt for market bonds.

An ETF is ideal for investors who do not like to keep their platinum investments in storage. The value of your ETF corresponds to the prevailing market price of an ounce of platinum wherein your capital appreciates on market performance.

Looking for the ideal platinum bond investment takes into consideration your style of investment and your predispositions to acquiring such an asset. For avid mint collectors, bullion coins are the best type of financing, and for platinum bar enthusiasts, the product is the more ideal.  

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