When you are looking to diversify your investments, platinum is a vibrant commodity that is worth considering. Apart from the usual gold and silver, this high-value metal also promises an excellent investment return. There is a reason why the highest tiers in memberships and credit cards are called platinum-level. High value is synonymous with this precious metal.
As the famous adage goes, never put all your eggs in one basket. With the unique characteristics and burgeoning demand for this metal in the global market, this precious element is a perfect addition to your portfolio. Here are some reasons to convince you that investing in this metal is a sound choice:
Enjoy Owning a Rare Metal
When it comes to precious metals, platinum enjoys being one of the rarest on the planet. It has to be mined deep from within the earth’s crust, so only a few tons are mined annually. Additionally, it can be found in high concentrations in only specific regions of Russia and South Africa. Thus, it is less common than silver and gold. However, even if it is difficult to extract, many industries desire this metal because of its unique properties.
This metal may be soft, white with a vibrant sheen, but it is super strong. It is one of the most popular metals used in the jewellery industry. In fact, pieces made with platinum metal fetch a higher price than gold and silver. Investing in this metal is a sound decision because its value will continue to go up because of its rarity. In cases of disruptions in the supply chain, owning this precious metal now means you can benefit in the future should the prices skyrocket.
Benefit from a High Demand in the Market
Contrary to popular belief, platinum can be used for many things other than fine jewellery pieces. It is both malleable and ductile, so many industries rely on platinum to make wire or sheets for various objects. This metal is also non-reactive, making it resistant to rust and corrosion. As such, it is popularly used for motor vehicle parts and dental prostheses.
Today 20% of consumer goods already rely on this element, and the number is continuing to grow in the following industries: glassworks, medical equipment, chemical processing, and petroleum refining. With the limited supply, investing in platinum now means you can get it for a lower price now, then benefit later on from an increase in price as the demand continues to surge.
Consistent Top Performer
A lot of investment funds have chosen to diversify into this precious commodity because of consistent high returns. Experts say that platinum’s price has more potential than silver and gold because it is always expected to increase. Because of this, numerous investors buy it for a lower price and enjoy the price increase as the days go by.
Through the years, this metal has proven to be a top-performer when it comes to assets. To illustrate, in 1971, the price was $90 an ounce, and by 1980 the price ballooned to $1,000 an ounce. The significant price increase is evident, with the market trend consistently going up as the years progress. There may be a few downward trends, but these are rare anomalies that do not last long. It doesn’t discount the fact that platinum is still a better long-term investment.
If you are looking for safe ways to grow your money, investing in platinum is not as risky as the other options. In fact, global investors use this metal as a hedge against inflation, especially when the economy is rough. It is vital to remember that platinum supply is affixed, but the industrial demand continues to rise. Take advantage of this commodity as it will provide you with gains while helping you absorb losses should the market go down.