Investing in precious metals is becoming increasingly popular. However, it tends to be gold and silver that investors lean towards. There are various reasons why this is so. For example, investing in gold and silver can be done in a number of different ways. They have almost always been considered as metals with a high value. However, there is a new kid on the block, and many new investors are looking to platinum when investing in precious metals. It has a very short trading history when compared with gold and silver, but it is slowly creeping up in the popularity stakes.
Why Platinum is a Good Investment
Three very valid reasons spring to mind when asked whether it is a good investment.
Limited supply – More platinum is being found around the world, but it’s still much rarer than gold or silver. Almost all the global supply of the metal comes from Russia and South Africa, which means there is a lot of uncertainty surrounding its future supply.
Increasing Demand – the demand for platinum is steadily increasing. Not just in the form of an investment either. It is an essential industrial commodity and used to manufacture around 20% of all consumer goods. It is used in automotive catalysts, for which it is in greatest demand. Second in the demand stakes is jewellery. Next on the list are petroleum and chemical refining catalysts. Finally, there is the computer industry that takes the rest. Clean air legislation is likely to increase the demand for this metal. However, both American and Japanese manufacturers are increasingly turning to recycling options, or making use of palladium. This is in the same group of metals as platinum, but is much cheaper.
Price – it has been one of the top performing assets in recent years. For example, from January 2000 to 2009 its price increased from $350 to $1,250.
If you’re thinking this sounds very appealing, here are the various ways you can do it.
Ways to Invest in Platinum
Bullion – if you’ve got the space and it’s safe and secure then coins and bars are a great option.
Futures and Options – this market offers liquidity and leverage for any investors who are willing to take big risks. They provide the potential for the greatest profits and of course losses.
Stocks and Mutual Funds – sticking with fund managers choices is the best option if you know very little about the value of mining stock.
ETFs – exchange traded funds are a very convenient form of investment.
Certificates – with these you get all the benefits of owning the physical metal, but you don’t need to worry about transporting and storing it.
There’s no denying that investing in platinum is a sound investment. For more details and to find out prices Indigo Precious Metals are the ones to call.