Introduction
Τhe question of how to invest in platinum requires a short description and analysis of this precious metal. Platinum is mostly mined in northern South Africa, with smaller quantities coming from Russia and Canada.
The extraction process is difficult. Platinum is rarely found in isolation; rather, it is usually discovered together with other metals including copper, nickel and chrome.
Platinum comes in a variety of forms, and it is suitable for a wide range of applications. It is crucial in the production of electronics, health care, and manufacturing.
Platinum’s unique properties make it a commodity worth investing in today. The low density, high melting point, and stability at high temperatures give it many uses.
In addition, platinum is one of the most precious metals in the world, 30 times rarer than gold. However, currently trades at half the price of gold.
Despite this, platinum historically traded at a healthy premium to gold due to annual mine output being 15–20 times less common than that of gold.
Traditionally, it has been suggested that investors should hold a portion of precious metals in their portfolio to act as a “safe-haven” asset as well as a hedge against inflation.
Gold clearly excels in this regard. However, many people today consider platinum to be comparable to gold but with more powerful supply and demand fundamentals.
Platinum has been shown to be a long-term portfolio diversifier by improving the efficacy of precious metals allocations. If investors in gold had incorporated even 5% of platinum into their portfolios, their risk-adjusted returns would have been greater over the past years.
In this article, we will answer all of your questions about how to invest in platinum and examine the following topics:
- Why invest in platinum
- Investing in actual platinum (billions, coins)
- Investing in platinum financial assets (mutual funds, futures, ETFs, mining stocks)
- Should I invest in platinum
Why invest in platinum?
Platinum has several advantages as an investment. Some investors see it as a way to preserve value in uncertain times, while others consider platinum like other precious metals to be a hedge against inflation.
Platinum, like gold and silver, might be a useful tool in diversifying your portfolio from stocks, shares, and bonds.
There are a variety of methods to invest in platinum. The main topic we will discuss in this article is how to invest in platinum.
To decide which strategy is best for your investment goals, you can see below the best 6 platinum investment strategies:
- Platinum bullions
- Platinum coins
- Platinum ETFs
- Platinum mutual funds
- Platinum futures
- Platinum mining stocks
Precious metals price performance over 1-40 year periods:
Investing in actual platinum
Physical platinum can be purchased at local coin dealers or bullion shops. It is a durable, portable investment that you can hold in your hand.
Platinum coins and bars come in a variety of shapes and sizes, ranging from 1/10oz rounds to 10oz bars.
There are advantages and disadvantages to each approach, but if you are interested in the platinum investment you can have some actual platinum in your portfolio.
Platinum bullions
It is critical to acquire platinum from a reliable bullion dealer. Do not try to purchase platinum from unverified shops since you risk getting scammed or receiving a counterfeit coin.
Once you have acquired the platinum, you will need to find a way to keep it secure. Bank safe deposit boxes and well-hidden home safes are two choices.
If you do not want to keep your precious metals in safe boxes at home, you can approach a company that offers safe storage.
Keep in mind that various types of platinum investments will have different liquidity levels. It will be more difficult to sell bars from unknown mints. You should keep your long-term plans in mind when purchasing platinum bullion.
Platinum coins
Trading platinum coins is a popular way to invest in platinum.
Since 1988, when the Canadians and Australians released the first platinum coins, these coins were considered as investment bullion. The American Eagle Platinum Coin was introduced in 1997.
Despite their youth, platinum coins are always popular and may be an excellent way for serious bullion investors to add to their silver and gold holdings.
Keep platinum coins safe if you choose to invest in them. They scratch more frequently than gold coins, so they should be kept in their case at all times.
Below you can find some of the most valuable platinum coins:
The American Eagle Platinum Coin: The American Eagle Platinum Bullion Coins with 99,95% purity of platinum, are a great method for individuals to invest in platinum as a precious metal since 1997.
The Canadian Platinum Maple Leaf: Issued by the Royal Canadian Mint in 1988 contains .9995 pure platinum.
The Australian Platinum Koala: In 1988, the Perth Mint launched the Australian Platinum Koala coin series with .9995 purity in platinum.
Investing in platinum financial assets
In this section, we will show you the best methods to invest in platinum by investing in financial instruments.
ETFs, mutual funds, mining stocks, and platinum futures will be examined in order to assist you choose the best approach.
Etf holdings by region:
Platinum ETFs
A platinum ETF(exchange-traded fund), like a gold or silver ETF, allows investors to gain exposure to platinum without to own physical asset.
The major purpose of this sort of asset is to enable investors to invest in platinum without paying additional fees such as premiums and storage for actual metal.
Some of the most famous platinum ETFs are the following:
Aberdeen Standard Physical Platinum Shares ETF (PPLT): The fund, established in 2009 in the USA, invests in platinum bullion. The goal of the fund is to track the real price of physical platinum. The fund is designed for investors who want a cost-effective way to invest in platinum with minimal credit risk.
GraniteShares Platinum Trust ETF (PLTM): PLTM invests in physical platinum held in a London vault and guarded by ICBC Standard Bank. The grantor trust structure protects investors because trustees are unable to lend the bars. Investors may expect PLTM’s fund to closely track the price of spot platinum since it keeps actual platinum bars.
You can also invest in ETFs that include platinum and other precious metals in their holdings:
Aberdeen Standard Physical Precious Metals Basket Shares ETF (GLTR): The investment objective is to track the price of real gold, silver, platinum, and palladium. GLTR’s top 4 holdings contain physical gold, silver, palladium, and platinum bullion.
If you are interested in how to invest in platinum through ETFs check out the following providers:
| Logo | Best Investment Platforms | Econalert Rating | Fees | Account Minimum | Visit the website |
 | Saxo Bank | 5 | $0 | $0 | Learn More |
 | Interactive Brokers | 5 | $0 | $0 | Learn More |
 | SoFi Active Investing | 4.9 | $0 | $0 | Learn More |
 | E* Trade | 4.9 | $0 | $0 | Learn More |
 | TD Ameritrade | 4.8 | $0 | $0 | Learn More |
Table 1. Econalert’s rating are determined through a multivariable algorithm by the investment department of Econalert.
Platinum mining stocks
If you invest in platinum mining stock you are not only investing in physical platinum but also in the company’s performance due to its expertise and financial strength.
The prices of platinum stocks depend on market conditions and other factors such as commodity prices and economic performance.
As an investor, you need to be prepared for price fluctuations as well as possible cash flow problems for companies that invest heavily in exploration or technology.
Some of the best platinum mining companies are the following:
Anglo American Platinum Ltd. (OTCPK: AGPPY): The largest mining company based in Johannesburg, South Africa, Anglo American Platinum was founded in 1995. They also extract nickel, copper, and zinc.
Stillwater Mining Company (NYSE: SWC): USA-based mining company, that produces platinum and palladium. The company’s shares are traded on the New York Stock Exchange.
Impala Platinum Holdings Limited (IMPLANTS): Based in Johannesburg, South Africa, Implants was founded in 1966.
Evolving technology in the industry is making more investable deposits available on the market. Recovering platinum from lower-grade deposits makes it possible to invest in a company that would have been financially or technically unfeasible just a few years ago.
Platinum futures
Platinum futures are traded on the New York Mercantile Exchange (NYMEX).
Their price is based on COMEX platinum index, which represents the average price of spot platinum.
Platinum futures may be an excellent choice for some investors considering their experience in trading these financial instruments, but if you are a new trader you should invest with caution until you gain enough knowledge to protect yourself against the risk associated with futures trading.
Some of the most reputable companies that invest in platinum are:
Lincoln International (NASDAQ: LNCO)
Salient Partners (NYSE: SP)
Scotiabank (NYSE: BNS)
BAVARIAN NORDIC (OTCQX:BNORF).
Due to the fact that invest in platinum futures is an indirect method of investing, it can be extremely risky for new investors who are uncertain about how invest in platinum works.
Platinum mutual funds
Many investing experts recommend invest in mutual funds to start your platinum portfolio.
Investing with a major financial institution is less risky than investing directly in physical platinum or invest in platinum mining stocks.
However, invest in platinum mutual funds may not be the best choice for long-term investors since they are affected by changes in interest rates and other factors that have an impact on platinum mutual funds performance.
The fees associated with investment in platinum mutual funds are also higher than invest in platinum ETFs.
However, invest in platinum ETFs may be less liquid compared to invest in platinum mutual funds.
Should I invest in platinum?
Invest in platinum, gold, silver, or other precious metals is not a suitable option for everyone.
However, there are several options if you decide to add platinum to your portfolio. You can invest in platinum billions, coins or bars, mutual funds, stocks of platinum mining companies, ETFs or directly owning futures contracts.
If you decide to invest in platinum, make sure that investment money represents only a small percentage of your portfolio in the beginning.
Investing in platinum mining stocks can be extremely lucrative if you invest with companies that fund heavily in research and technology.
Many experts consider investing in platinum mining stock as the best way to invest in platinum due to their possibility of higher returns compared to other options.
If you are a new investor, invest in mutual funds or invest in ETFs maybe are better options due to their easy investment process and lower risk profile.
Platinum futures present high risk but have the potential for high investment returns.
We believe that you will have solved many questions about how to invest in platinum. You can evaluate the advantages and weaknesses of the various types of platinum investments that we have explained above and find which one fulfills your investment goals.