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Is It a Good Time to Invest in Platinum?

Most people when investing in precious metals invest in gold and silver, but have you thought about investing in platinum, and is it worth investing in it?

Dean Jovceski



The popularity among investors for platinum is increasing. We are halfway through 2022 and we can already see higher demand for platinum. Also, there is a lower supply so this can be an interesting year to consider investing in platinum. Platinum can be a great choice if you want to diversify your portfolio by investing in precious metals.

Investing in Platinum. Is it a good time?

Platinum is much rarer than gold and silver, even 30 times rarer than gold. This is due to the fact that the majority of the supply comes from two countries Russia and South Africa. Such as gold and silver, platinum is also trading around the clock on global commodities markets.

When investing in platinum you need to consider that trading with platinum is not as easy as trading with gold and silver.

Not all coin shops buy and sell platinum so if you have a lot of platinum you might struggle to find some coin shop to offload the stock you have. Another possibility is to try to sell it online, but that can take some time.

When you look at platinum the current price is just under $1000 for an ounce. The price of platinum corresponds with the price of palladium. For example, if the price of platinum rises that means that the prices of palladium will be lower and the other way around.

Platinum is not a typical everyday precious metal to invest in such as gold and silver. This is a different kind of wheelhouse.

Where is it used?

There are a couple of different industries that use platinum. Over 30% is used in the auto industry, which is quite lower than 20 years ago, 25% in the industrial industry, 23% as a piece of jewelry, and the other 20% as other types of investments.

This is quite different from palladium which is used mainly for auto catalysts (84%), 13% in the industrial industry, only 1% as a piece of jewelry, and 1% in other industries.

Currently, the price of palladium depends on its usage in the auto industry. Palladium is being used only for diesel vehicles. But it is possible that the industry will shift back to using platinum also for gasoline-powered vehicles and we can see the price go up and the price of palladium goes down.

This is not a guarantee because we don’t know the future of gasoline-powered vehicles with electric vehicles taking over. So this is a case scenario to keep in mind.

Which are the best precious metal to invest in?

If we talking about right now we would suggest you try investing in silver as a first choice, then gold, platinum, and palladium at the end.

When it comes to investing in precious metals silver and metal should always be your first choice. If you want to diversify your portfolio and try investing in platinum with the current price and demand it can also be a good choice. But don’t go all-in on it.

To start, you can buy just a small portion of palladium for your portfolio and then maybe increase. Even if investing in platinum is probably not the best choice it is definitely better than keeping your money in cash. This is always a bad idea.

Also, we do think that investing in platinum is a better choice than investing in crypto. This is because that market is super volatile and no one really knows what will happen with all the cryptocurrencies.

The downside of investing in palladium is that you can find palladium mines only in South Africa and Russia. Also, it is highly dependent on auto sales and production numbers. Also, the price of platinum is significantly more volatile than the price of silver and gold.    

Overall platinum as an investment is not terrible but when compared to the other precious metals it is probably not the best one. But if you decide to invest in palladium we suggest the American Platinum Eagles platform for it.

As in any other investment before investing in platinum do as much as research you can. Investing in precious metals is not risk-free but is up to you to decide whether you will invest or not.

Also read: How to Make Passive Income with Crypto in 2022?

This is Dean and he is a former banker with a passion for writing. He has Bachelor’s degree in Economics and an FCE English level certificate. Dean is an honest person looking for long-term partners and always giving clients more than they expect.

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