If you are looking to expand your portfolio and invest in precious metals, then platinum would be the way to go. You could start by purchasing investment-grade platinum coins or bars at sites like GoldStackers offering competitive prices.
Investing in any precious metal is an excellent way to hedge your portfolio against market risks. Platinum is one of the rarest metals globally, whose prices largely depend on industry demands rather than investor sentiment.
The article will look at different reasons why platinum makes for an excellent asset for your portfolio.
Platinum is a Rare Precious Metal
If you want to cherry-pick the precious metal to invest in, platinum is one of the rarest metals you can find. The production process is complicated, as the metal is located deeper in the earth’s crust. The purification process is also complex compared to gold.
According to reports, platinum reserves worldwide as of 2020 stood at 69,000 metric tons. Almost 95% of these reserves are available in South Africa.
Platinum is a highly malleable metal. It can be hammered or bent into diverse shapes without the metal losing its toughness. Owing to its rarity, platinum has become more of a prestige symbol in the jewellery market.
Increased Industrial Applications
The automobile sector is the biggest consumer of platinum. It plays a critical role in the exhaust system, controlling vehicle emissions. With companies looking for greener alternatives and countries looking to combat global warming issues, platinum could be used as a long-term solution in the automobile industry.
Platinum is also used in various industrial applications like chemical, medical, electrical, and glass fibre manufacturing. Jewellery is the second biggest sector with the demand for platinum.
Investment demand in platinum is comparatively on the lower end, and thus it would be a good time for you to buy those platinum coins and bars from agencies like GoldStackers.
Historical Investment Performance
Historically, platinum has traded well above gold until September 2008. Today, gold is traded at a higher price, though investors believe platinum could perform at par with gold due to its increasing demand and investor awareness.
The price of platinum can get more volatile than gold in the short term; thus, this metal is suitable for medium to long-term investment goals. As the platinum price largely depends on the diversity of applications, the future for this metal looks promising.
Manage Overall Risk for Your Portfolio
Precious metals are typically safe havens when it comes to investments. The price and value of these metals stand their own in times of economic downturn. They are physical assets that you can rely on. They cannot be hacked into or be a target of any other cybercriminal activities.
Platinum is a rare precious metal with diverse applications and growing industrial demands. The metal is widely used in applications combating global warming issues. Thus, it would be safe to assume the need for platinum is here to stay in the near future. You could add a new dimension to your portfolio and add a layer of security with platinum. Invest in the precious metal today by exploring options online.
This article is for information and educational purposes only and does not form a recommendation to invest or otherwise. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.