For many people, investing in precious metals is a bit of a minefiled. Many of those who have dipped their toes into the precious metal investment waters lean towards gold and silver. There’s nothing wrong with this choice, as there are many different ways to invest in these two metals. However, platinum is becoming an increasinly attractive proposition and it is now seen by many to be a valuable investment.
What is Platinum?
It is known as a precious transition metal which is a greyish white colour and often confused with silver. The name platinum comes from a spanish word ‘Platina’, which means ‘small silver’, It can be found in the Ural Mountains, the Western United States, Africa and Columbia. It tends to be found along with other metals from the same group such as rhodium, iridium and palladium.It may also be found near nickel, copper, silver and gold.
Platinum has Been Used for Centuries
It became a more common material around the beginning of the 18th century. However, examples of its use have been found dating back to 700 BC. Nowadays, platinum is thought to be one of the rarest precious metals. A mere 8 million ounces are produced every year. This is about 10% of the world’s annual gold production.
Why Invest in Platinum?
It is not the most popular precious metal to invest in but there are a number of reasons you might want to jump onboard.
Limited supply – platinum is a rare metal. Rarer than gold and silver. More platinum is being found around the world but t is not enough to meet current demands. South Africa and Russia are responsible for 90% of the world’s supply. Future supplies are uncertain.
Growing demand – the demand for platinum os growing. It is a vital material in industry and 20% of consumer products use it in their manufacture. It is a popular metal because of its resistance to corrosion, electrical conductivity, durability and high melting point. It is also becoming more and more popular as an investment with private individuals, mutual, pension and investment funds buying large amounts.
Top performer – platinum has been a top performer in recent years. For example in 200 it was $350. 9 years later it was $1,250 per ounce. For current prices you can contact Indigo Precious Metals, a group of companies able to trade in precious metals and provide supply and delivery a service for customers.