View 6 products →
American Platinum Eagle
View 10 products →
Canadian Platinum Maple Leaf
View 3 products →
Investing in Platinum Bullion
What is Platinum Bullion and Why is it Valuable?
Although most people probably picture silver and gold when they think precious metals, platinum is one of the rarest precious metals there is. In fact, platinum is more than 20 times rarer than gold. The first recorded discovery was in the 16th century in South America, though most of today’s supply comes from South Africa. This metal has uses in everything from the automotive industry to fashion and jewelry. However, it hasn’t yet made the jump in people’s minds as a currency, the way that gold and silver have.
Why is that, if platinum is the rarest of precious metals? Largely due to historical habit, but also because of political unrest in the area where more than 70% of platinum comes from, this metal simply hasn’t become a viable means of common currency yet. Even so, we still consume roughly 250 tons of platinum every year, in the form of raw platinum, platinum bullion, platinum bars, and platinum coins.
Why Should An Investor Choose Platinum Over Another Precious Metal?
There are many reasons why platinum bullion coins make a great investment. Just like silver, platinum’s wide variety of uses in multiple industries gives it a stable future. Where silver’s industrial future is tied greatly to the rise in solar energy production, platinum is currently an important factor in creating the technology that cuts back on harmful car emissions. As emission inspections and laws become more and more standard, platinum will be in even higher demand to create vehicles that can legally be driven.
Because platinum is so scarce, it presents an excellent investment for those who intend to liquidate at a later time. It will be extremely easy to find buyers for platinum bars or platinum coins, and because the metal has a high value-to-density ratio, it doesn’t take much to amass quite a bit of wealth. In fact, a single ounce of platinum bullion currently represents more than $1,000 in value. Storage and transportation is incredibly easy, and therefore safekeeping will be simple as well.
Platinum is also perfect for collectors and investors on a practical level. This metal resists corrosion, and far less than most of the already-limited precious metal goes to coin production. While the platinum metal market can be volatile, the value of platinum tends to follow a few different trends. If the automobile industry is up, platinum is sure to follow. If platinum prices decrease, however, most platinum mining will decrease, resulting in even less coins being made. While platinum would make a great portfolio diversifier for those interested in staying in the precious metals market, it may be best to use it only as an addition to your gold and silver investments.
How to Invest in Platinum
The real question is: how should you choose to invest in platinum? There are several options, but at SD Bullion, we offer the very best in physical platinum investment options. Our platinum bars were minted by the popular Pamp Suisse mint. We offer 1 ounce bars, as well as 1 gram bars that are easier for beginner investors to collect as they grow their wealth.
Our platinum coin selection is broken down into two categories: the American Platinum Eagle, and the Canadian Platinum Maple Leaf. These two platinum coins offer the purest platinum investment in the most portable option. The American Platinum Eagle was first minted in 1997. At .9995 purity, with the Statue of Liberty and the Soaring Eagle depicted on either side, this coin is the official platinum bullion coin of the United States Mint. The Securities and Exchange Commission has made the American Platinum Eagle authorized for inclusion in Precious Metals IRAs, making platinum just as easy to invest in for retirement as gold or silver.
The Canadian Platinum Maple Leaf has been the standard platinum collector’s coin for over a decade. From the renowned Royal Canadian Mint, which consistently produces some of the highest quality bullion in the world, this coin features the beautiful maple leaf design with the modern micro-engraved security feature that all but replaces a certificate of authenticity. The RCM limits their platinum coins each year, and yet the sales of platinum bullion from the RCM have risen by more than 50% each year. With the rarity of the metal and the limited nature of the coins, this could mean that collectors may find it very easy to amass a valuable collection of beautiful coins.
Bottom Line on Platinum
Like all other precious metals, platinum’s value can go up or down depending on a variety of factors. However, the rarity of the metal, the value it has to the automotive industry, as well as in many other applications, and the rising popularity of platinum coins and platinum bullion bars all lead to one conclusion: platinum is one investment that shouldn’t be ignored by those interested in precious metals.