Guide to Investing in Platinum: Tips and Forecasts

Investing in commodities, and in precious metals in particular, is particularly interesting for those who want to invest their savings. The trend to invest in metals exploded after the 2008 crisis, due to the inflation to which the currency was subjected.

Among the various possibilities, we find that of investing in platinum. This is a very interesting precious metal both in the industrial field and for more purely speculative purposes. It is in fact one of the most expensive metals traded on the stock exchange, and is used in many sectors, from the industrial and automotive sectors to the jeweler sector.

So if you want to speculate on this commodity, you are in the right place: in this guide, I will try to show you what are the investment prospects on this metal and how to invest in it.

Keep reading!

This is why it is a very palatable metal

As I anticipated, platinum and other metals have acquired a particular appeal following the economic crises of recent decades, as the currency has lost its attractiveness.

Thus platinum has emerged as an alternative, given the wide use made of it in the industrial sector: this feature protects it from unexpected price changes and, indeed, makes its price tend increasingly higher. This is also because it is rarer and more difficult to extract metal than others (gold above all).

The industries that use platinum are both those traditionally linked to the production of jewels (its rarity and its brilliance make it really suitable for this luxury sector), and those that instead produce cars: in fact, it is used in the production of catalysts, which allow car manufacturers to reduce polluting emissions from vehicles on the market.

Not only that: it is also used in the production of laboratory instruments and in the dental field.

How to invest in platinum?

Having said that, let’s see how we can invest with this metal. The possibilities, as in the case of investments in gold or in silver, are manifold. Let’s see what they are.

ETF 

This tool is used by investors to be able to trade in metals without actually having to buy and then store products, which would require space and probably resources (such as buying or renting a safety deposit box).

Futures

The second tool I want to talk to you about is represented by futures, which allow you to invest in the trend of the value of companies that deal with the extraction and processing of platinum.

This tool looks like a real contract that binds to the forecasts on the market trend.

It involves making a commitment to buy a certain product (or sell it) by date and predict its future price – here you can read an in-depth guide on this tool.

Buy platinum

If, on the other hand, you prefer to buy platinum in a physical sense, how do you go about it? Is it worth it? If you decide to opt for this solution you will have to choose very carefully from whom to buy the bars or coins of value: you will necessarily have to select accredited and certified companies. To keep everything, you will need to contact if possible a bank that can keep the asset in a maximum safe deposit box (which involves a cost).

Another thing to know if you decide to buy physical platinum is that the purchase price will be a so-called spot price, i.e. linked to the moment of purchase and not to the price imposed by the official market.

The advantage of opting for this solution is that the asset will be disconnected from the price fluctuations to which a financial market necessarily subjects the other financial instruments to which I have referred.

In addition to coins and ingots, there is the possibility of buying and storing the jewels, but they must be as ancient as possible to be endowed with a truly greedy value: this must be ascertained by an expert, who will be able to evaluate the purity of the metal and help you in attributing the exact value to your investment.

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Future prospects

Since it is not possible to know exactly the reserves of platinum present in the world, and therefore how much more will be extracted, it is not easy to estimate reliable and safe forecasts.

I can say that the demand is constant, especially, as already mentioned, in the industrial sector, and this makes them an attractive investment.

We then consider that its use in the various sectors (excluding luxury and jewelry) is quite recent and this will lead to an increase in demand and, therefore, in its value.