Compared to gold and silver, platinum appears to be a very young precious metal – the first mentions about it come from the 16th century. Already then the Italian humanist G.C. Scaliger, an Italian humanist, recognized platinum’s unique properties when he described it as “a metal that cannot be melted by fire or by any Spanish tricks”. Nevertheless, platinum did not enjoy much recognition at first, since the origin of its name comes from the negative diminutive of the Spanish word “plata”. (silver). The term “platina” was supposed to express low usefulness of the newly discovered metal. How is it that nowadays platinum is considered to be one of the most valuable metals, which along with gold and silver is among the most frequent choices of those investing in precious metals?
What distinguishes platinum from other precious metals?
What distinguishes platinum from other precious metals is undoubtedly its availability, as platinum is considered to be one of the rarest metals on the planet and according to the median estimation of experts is about 25 times rarer than gold! The very fact that gold deposits have been discovered on every continent – except, of course, Antarctica – and, according to the World Platinum Investment Council, only four countries are involved in platinum mining (of any significance) adds to the uniqueness of this metal. The largest share of platinum mining is attributed to South Africa – it is estimated that it is in this country that the extraction of this metal oscillates in the range of 75-80% of its world production. To further illustrate the rarity of platinum, we can imagine that all the platinum ever mined would cover only the cubes in just one Olympic-sized pool, while all the gold ever mined would probably fill the surface of three such pools.
What does the price of platinum depend on?
Like gold – albeit to a greater extent silver – platinum has an important function in industry. Therefore, the demand, and therefore the price of this metal is strongly correlated with the current economic situation and the condition of global economies. Taking into account a wide spectrum of platinum applications in dynamically developing sectors (with particular emphasis on the automotive and electronic industries, but also medicine, biomedicine and surgery), there is great potential for growth in the market for this metal. The best reflection of the versatility of platinum applications is the fact that since 1980 the demand for this metal generated by the industry has almost quadrupled!
Is platinum worth investing in?
When considering the purchase of investment platinum, it is worth bearing in mind that the market for this metal is much smaller than for gold or silver. Does this detract from platinum as an investment metal? Not necessarily. One of the most frequently cited basics of a properly functioning investment portfolio is its diversification. Platinum is a particularly noteworthy way to supplement an investment portfolio, given the indications that demand for the metal will continue to grow. Given the severely limited supply of platinum, it is reasonable to assume that any surge in demand for the metal will be a significant catalyst for a dynamic increase in the price of platinum.
What to choose for investment in platinum?
Platinum, like gold or silver, can be purchased in both physical and “paper” form. Given that investment platinum is included in the group of assets commonly referred to as “safe haven”, it will perform best in this role in its physical form. Why? The crowning argument of proponents of investing in physical precious metals is that, unlike other asset classes – such as stocks, bonds, cryptocurrencies – you can have full control over the purchased investment metal – provided that its physical form will dominate in our portfolio. This is the most correct line of thinking considering that then we do not base the investment on the trust that our platinum “is somewhere”. Thus, we do not run the risk that in case of a serious crisis we will be left with nothing. In short, if we decide to buy platinum in physical form, we buy a metal and not a promise, which, especially in uncertain economic times, is of fundamental importance. This type of investment form is worth considering when purchasing raw materials that could be problematic to store.
When considering an investment in physical platinum, it is important to keep in mind that not every product made of platinum will do well in the investment area. Why? Because of platinum’s growing role in jewelry manufacturing, we will use the example of a platinum necklace purchased from a very popular jeweler. This form of capital investment in platinum is not the best solution, because we overpay – and doubly so, which to a large extent conflicts with the idea of investment. Platinum jewelry – like other products that were not created with investment in mind – will not always be made of the highest purity bullion. What is more, when buying our necklace we pay not only for the platinum contained in it, but also – or maybe above all – for the manufacturer’s margin included in the price, which will be of little interest to anyone when buying it back.
Platinum bullion coins and bars – how to invest in platinum?
Now that we know what is NOT worth investing in, it is time to discuss the issue of products that will work best in the investment area. Investing capital in platinum on the level of choosing specific instruments is very similar to investing in gold or silver – the best solution will be to direct your attention towards products created directly for investment. This category of investment products includes platinum bullion coins and platinum bars. Another important aspect when choosing a particular platinum product or products is the reputation of the manufacturer – it is worth choosing those coins and bars that were produced by the most popular mints. This will help you avoid complications when selling your platinum, no matter what country you are in at the time.
Platinum coins will be a great option for investors who are not only looking for a way to safely invest their capital, but are also extremely sensitive to art of all kinds. Platinum bullion coins are characterized by the utmost care for every detail, unique design and exceptional aesthetics of production. Their unquestionable advantage over platinum bars is the simplicity of verification of authenticity, since they are originally placed in a plastic, openable “cap”. Platinum bars, on the other hand, are contained in CertiPacks, the damage of which may negatively influence the price of the product. Some of the most popular platinum coins include the Platinum Vienna Philharmonic, the Platinum Queen’s Beasts – White Horse of Hanover 2021 and the Platinum Queen’s Beasts – White Lion of Mortimer 2021.
Given the marginal differences in the price of platinum bullion coins and the fact that they are generally considered a long-term investment, choosing one can only be dictated by an investor’s personal preferences.
Where to buy investment platinum?
Why should you trust us? Tavex is the undisputed leader in the distribution of investment precious metals in the countries of Northern Europe and one of the leading entities in Central and South-Eastern Europe. Over 30 years of presence on the market allowed us to establish lasting relationships with the largest producers of investment platinum.
First and foremost, however, we are a long-term partner of the largest Swiss mints PAMP and Valcambi, which have the aforementioned LBMA accreditation and enjoy international recognition, and whose gold bars we offer – you can find information about us on the PAMP website. Moreover, thanks to our good relations and direct cooperation with these refineries we are able to offer their products at the most competitive prices in the country.
In Poland you will find our outlets in Warsaw, Gdynia, Katowice, Wrocław, Lublin. However, you can invest without leaving your home! All you need to do is make a purchase through the online store you are in right now – we only sell products that are physically available in stock, and we dispatch orders within 24 hours:
– by Pocztex or Fedex courier to the indicated address (e.g. home),
– to a selected pick-up point (Żabka, Ruch and others),
– by priority registered mail,
as well as we offer free of charge personal collection in a selected branch.
Do not hesitate any longer – secure your savings today!
Investment decisions should be made considering different factors, including the latest market data. Please make an appointment for a free consultation – over the Internet, by phone or in person at our office.
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