There may never be a better time to buy platinum, except when the price was lower. So it goes with all investments classes that are in a strong secular bull market, but especially with commodities in general at a time when the world seems to be running shortages.
Platinum is the Rarest of the Precious Metals
Platinum (Periodic Table symbol Pt), along with gold and silver, is in an undisputed long-term bull market. Called the “Rich Man’s Gold,” platinum is more rare than gold by a factor of 15 or more. It is the rarest of the precious metals. The reason for the value of platinum reaching such great heights is mostly due to its scarcity, but also due in part to its utility. Platinum is used in many industrial applications such as catalytic converters, computers, dental equipment, and even drugs for cancer treatment. But that is only part of platinum’s many uses. Besides this half of platinum’s applications, the other half is comprised of jewelry (about 40%) and platinum investments (10%).
Platinum vs. Gold
With the platinum vs. gold situation in terms of availability, platinum pales in comparison. Most of the gold that has been mined throughout the centuries is still in a well-preserved state (and used in decorative pieces, ornamentation, or jewelry), whereas if platinum (it is said) were to have its mining discontinued it would be completely gone in a year’s time (except for that which has been saved/hoarded).
Some of the most well know platinum investment vehicles are the Platinum Eagle produced by the government mint, and platinum bars (platinum bullion). Platinum prices reached a climax in 2008, reaching over $2,000 per ounce! It then dipped down during the “credit crunch” as all asset classes slid south, eventually reaching parity with gold (talk about a perfect situation for buying on the dip). Platinum prices in the spot market are now fast approaching the $1,800 mark, while gold flirts with the $1,600 level.
Buy Platinum Now to Protect Your Purchasing Power and for a Potential Big Future Payoff
Platinum coins are a great store of value in times of inflation and government mismanagement. It is always a wise choice for the common investor to “get physical” by having a portion of his or her investment portfolio allocated to platinum coins or bullion, along with similar products in gold and silver. Diversifying is one of the tried and true successful investment strategies. Another method of buying platinum is through an up-and-coming favored investment equity called an ETF (Exchange Traded Fund). The Platinum ETF is a popular choice available on the NYSE (New York Stock Exchange) among those who have already have bought platinum and stockpiled as much as they are able to, or who prefer not to have to deal with the logistics of storing platinum. The Platinum ETF is set up to function as essentially mirroring the price of platinum, where each share is represents one-tenth of an ounce of platinum.
Platinum Outperforms the Market
Whether you want something that will appreciate in value over time as one of the current best investments, or as protection against a falling dollar, buying platinum is a prudent and potentially wealth-enhancing option, and has proven itself to outpace the stock market handily in returns during the last few years.