Everything you need to know about investing in platinum

Apart from investing in gold and silver, investing in platinum through The Silver Mountain can also be an interesting option. Although it is more common to invest in gold or silver, platinum offers unique properties and applications that make it valuable for investors and industries alike. 
Platinum, a durable precious metal, while not having the same history as gold and silver, is widely used in industries and technologies. Because of its scarcity and strong properties such as corrosion resistance at high temperatures, platinum is especially popular in the industrial and jewellery markets.

 

Industrial use of platinum

Platinum has a unique role within several industries. It is often used in catalytic converters for diesel engines, due to its ability to reduce harmful emissions. This makes platinum essential in the automotive sector, where it is used to make vehicles more environmentally friendly.
Apart from this application, platinum is sought after in the jewellery industry and plays a role in several other technologies. Platinum's properties, such as resistance to high temperatures and corrosion, make the precious metal versatile and valuable for specific applications.

The price of platinum and market conditions

The price of platinum is directly linked to the international stock market price, which fluctuates daily based on supply and demand. Unlike gold, whose price often rises in times of economic uncertainty, the platinum price is mainly determined by industrial market conditions. For instance, demand for platinum may increase with a growing automotive sector or the introduction of environmental legislation, which limits harmful emissions. 
Investors in platinum should be aware that the value of this precious metal is less predictable than that of gold, as it is highly dependent on industrial factors.

Advantages and disadvantages of investing in platinum

Advantages of platinum investments:
Scarcity: Platinum is rarer than gold, which positively influences its price.
Industrial demand: Constant demand from various industries makes platinum a valuable and sought-after metal.
Diversification: By investing in platinum, investors diversify their portfolio and benefit from a different type of precious metal in their portfolio.
Disadvantages of platinum investing:
21% VAT on bars: The VAT payable when buying bullion bars makes platinum bars less attractive for retail investors.
Fluctuation: Due to the strong dependence on industrial demand, the price of platinum can fluctuate.
Less ‘safe haven’: Unlike gold, platinum offers less protection during economic uncertainty as it is less seen as a store of value.
Are you interested in platinum as an investment? Check out our range of platinum coins and discover the possibilities of diversifying your portfolio with this versatile precious metal.
 
Disclaimer: The Silver Mountain does not provide investment advice and this article should not be considered as such. Past results offer no guarantees for the future.