Everything you need to know about platinum

At The Silver Mountain, you can easily invest in platinum bullion coins and platinum bars. Platinum is globally recognized for its beauty, durability, and rarity. In comparison, 94% more gold and 99% more silver are mined annually than platinum, making the total market size for platinum relatively small. But what exactly is platinum?
 

What is platinum?

Platinum is a highly rare precious metal widely used across various industries. As a precious metal, it does not react with many other elements, making it an excellent catalyst for various chemical reactions.
 
Platinum has a white sheen that makes it highly attractive. Before European colonists arrived in South America, platinum was already used there in jewelry, figurines, and ornaments. However, the colonists initially regarded platinum as an impurity. It was not until the 18th century that chemists began studying its properties in more detail, realizing that it is a valuable metal with various applications.
 

What is platinum used for?

The majority of annual platinum production, around 40%, is used in the automotive industry. Platinum is utilized to capture harmful substances in exhaust systems. As sustainability becomes increasingly important in the automotive sector, the demand for platinum is expected to continue rising.
 
Additionally, 30% of platinum production is used in jewelry, while approximately 20% goes to other industries, including the medical sector. Only 6% of the annual mined platinum is purchased as an investment asset.
 

What is the price of platinum?

Due to its rarity, platinum is a valuable precious metal. At the time of writing, the price per kilogram of platinum is over €29,370. Over the past two years, the price of platinum has fluctuated between €32,000 and €29,200.
 
The platinum price sometimes fluctuates due to industrial demand and supply from mines. Extracting platinum is highly intensive since it is rarely found in its pure form. Although platinum in the form of coins and bars is cheaper than gold, platinum jewelry is more expensive. This is because the smelting process can take up to six months.
 

Platinum as an Investment

For investors, platinum is an interesting option as it is cheaper than gold but highly rare. Industrial demand for platinum continues to rise, which can lead to shortages. These shortages may cause the price of platinum to increase significantly.
 
At The Silver Mountain, you can easily buy platinum in the form of investment coins. Alternatively, you can choose to purchase platinum bars with storage in a Swiss bonded warehouse. By buying platinum bars with storage, it is possible to acquire platinum VAT-free.
Initially, platinum, like silver, is classified as a commodity and is therefore subject to 21% VAT. However, if you purchase platinum bars for business purposes, you may be able to reclaim the VAT.
 
Platinum coins fall under the margin scheme, meaning that VAT is only charged on the profit. For private investors, this is the most attractive option for investing in platinum.
 

Platinum Hallmarks and Purity

The platinum coins and bars sold by The Silver Mountain are 99.95% pure platinum. On coins, this is indicated as 9995, while on bars, it appears as 999.5. Some coins also feature the inscriptions Fine Platinum and/or Platine Pur to indicate their purity.
 
Platinum bars are also available in blister packaging, which serves as a certificate of authenticity. Platinum coins come from recognized mints.