In these uncertain economic times, one of the safest bets is to invest in tangible assets, such as precious metals. Platinum is one of these investments that is growing in demand. While you consider buying platinum coins or bars, tracking platinum spot prices is essential!
The value of most precious metals appreciates over time, giving you handsome returns in the future. While silver and gold bullion investments have always been the talk of the town for their spot prices, let us not forget platinum spot prices and their investments. Rarer and more expensive than gold, buying platinum can be a fruitful investment and a hedge against inflation (just like gold and silver).
Before getting into the deep waters, let us quickly understand what platinum is.
What is Platinum?
Platinum, or milky metal, belongs to the platinum group of elements. It is a rare element (rarer than gold) with a mean abundance of 5µg/kg. This scarcity makes platinum more valuable than gold.
Platinum has a silvery-white transition look to it, making people commonly confuse it with silver. Moreover, it is impressively resistant to corrosion, even when the temperatures are high. Such durability is another reason why platinum is so valuable. Usually, you can find this metal chemically uncombined in the form of native platinum.
Platinum is found in a few copper and nickel ores along with some native deposits. South Africa accounts for 80% of the entire planet’s platinum production. Since its discovery, the metal has been widely used for various purposes. Along with making fruitful investments, platinum is used for making laboratory equipment, catalytic converters, electrical contacts, electrodes, thermometers, and jewelry.
Understanding Platinum Spot Prices
If you wish to invest in platinum, ensure that you are well-versed with the ongoing platinum spot prices. The price of this metal fluctuates according to the changes in the platinum bullion market. It is also advisable to look at long-term trends in platinum spot prices to see how secure your investment will be. So far, platinum investment is considered safe and fruitful.
Here are the platinum spot prices (for platinum bars) as of 21st June 2024:
• Per Gram: $35.51
• Per Kilogram: $35,510.66
• Per Ounce: $1005.50
Always seek professional help and choose trusted dealers before investing in platinum.
Factors Affecting Platinum Spot Prices
Understanding what drives platinum price per ounce allows you to make informed investment decisions. Here are the most important factors affecting the price of this precious metal:
Demand And Supply
The high scarcity of platinum automatically makes it a valuable metal. Any changes in its supply will directly reflect in the platinum spot prices. Metal demand is significantly high in the automotive and jewelry sectors. Changes in the trends in these markets have the greatest impact on platinum prices.
The global demand for platinum also influences its spot prices. For example, China is a large automotive manufacturer and the largest consumer of platinum jewelry. This implies that an increase in the metal’s demand in China will increase its price everywhere else.
Geopolitical Climate
Geopolitical events also drive platinum spot prices. Russia and South Africa have the largest platinum reserves in the world. Events affecting any of these countries can directly influence the metal’s price. For example, Russia’s conflict with Ukraine led to the imposition of several sanctions on the country. Many countries backed out from buying Russian platinum, ultimately reducing the platinum supply in international markets.
Currency Fluctuations
Many countries across the globe use the US dollar as their chief currency reserve for international trade. Platinum prices are also typically expressed in US dollars. The position or strength of the dollar influences platinum spot prices. For example, if more and more countries move away from using USD as their chief currency reserve, it will weaken the currency, leading to a rise in platinum spot prices. This is because central banks will buy more precious metals as a hedge against economic uncertainties.
Environmental Regulations
The use of platinum in the automobile industry reduces emissions, encouraging sustainable development. Strict emission regulations in this sector will lead to an increase in the metal’s demand, making platinum more expensive.
Why Should You Care about Platinum Spot Prices?
The biggest reason why you should care about platinum spot prices is because they help you make informed investment decisions. The current price of the metal helps you assess your purchasing power and buy the right quantity of platinum.
If you have already invested in platinum and wish to liquidate, ongoing platinum spot prices help you calculate the returns you can receive on your investment.
Benefits of Investing In Platinum
If you are still on the fence about buying this precious metal, have a look at a few major benefits of investing in platinum:
A Safe Investment
Like most precious metals, platinum helps you make a safe inflation. It acts as a hedge against inflation and other economic uncertainties. Once you purchase platinum, you need not worry about losing your hard-earned money.
Rarity
Platinum is fifteen times rarer than gold. Such rarity makes platinum more valuable, giving you a better return on your investment than silver or gold bullion. However, ensure that you purchase platinum under the right market conditions.
High Volatility
The platinum market is more volatile than gold or silver. This increases your chances of earning handsome returns on your investment. Looking at historical trends, it is safe to say that platinum investors have made good money from buying the metal.
Applications In Major Industries
Platinum is widely used in key industries, making it the second most globally scarce industrial metal after silver. As long as platinum will be needed in large-scale industries, its demand will refrain from taking a downfall.
Where to Find Platinum Spot Prices?
If you are looking for accurate platinum spot prices, visit the websites of trusted precious metals dealers. You can also refer to the sites of legacy financial news websites for current platinum spot prices. It is advisable to compare the spot prices across multiple platforms before making a final investment decision.
The Final Word
Platinum is a rare metal that holds a significant value in the global bullion market. If you make a smart and informed investment, platinum can give you better returns than silver or gold. Having said that, invest in a precious metal like platinum only with the help of trusted dealers and professionals.
Do not rush your investments. Before anything else, ensure that you use your hard-earned money wisely!
Remember – Keep track of platinum spot prices before you start acquiring.
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