Precious metals are great for investments. And, platinum is considered one of the most important precious metals in the world. For investors, it is as equally important as gold and silver. However, it is less likely talked about compared to its counterparts. And even so, many investors utilise this precious metal as their hedge to counter inflation or as collateral against economic hardships.
The white metal is very valuable not just as an investment but also as an industrial metal. It is heavily used to manufacture different products such as electronics, jewellery, and motor parts.
It has distinct characteristics: ductility, malleability, and density. Because of this, It can be pressed into a shape without damaging or breaking its durability. Moreover, a gram of this metal can be stretched into a thin wire.
So, what are its distinctive qualities that make it a precious metal? It is very durable, and it is also very rare and versatile, with a remarkable set of qualities and astonishing applications.
Here are the most convincing reasons why this white metal is also an ideal investment.
1. Unique Investments
This precious metal offers a unique set of benefits for anyone who invests in it. It has strong merits to consider since this precious metal has been traditionally traded for gold at a very fair premium. Besides, during the past four decades, there were only four instances where it had a lower price than gold. However, its price recovered in the ensuing years.
It underpins those who invest in it with a low-risk entry whenever they seek to buy into its investment asset. Hence, it is a unique and well-performing investment, given its rarity, application, and diversity.
2. Sufficient Supply
The world’s supply of this metal comes from two main sources; mining and recycling. And while the recycled supply comes from automobile parts and jewellery, the biggest supply of this rare metal comes from mining.
South Africa has 70 per cent of the world’s supply of this white metal, while Russia has 12 per cent of it. And while Zimbabwe has eight per cent, the rest of the world has the remaining percentage. Even so, only four per cent of this precious metal is used for investment, making it very rare. It is mainly used for automotive parts, while the rest has industrial and jewellery uses.
3. Current Price Shifts
In the previous years, this precious metal’s price has been very volatile. However, investors have seen that its long-term value will provide more for investors, as it has displayed minimal crests and throughs.
Furthermore, this precious metal has a proportional reaction to the market, allowing investors to position themselves if it slows down and sell their invested portion when it goes up. Thus, while its value is fluctuating, investors can make more money from it. So, in short, the short-term price changes, although affecting the entire market, allows those who invest in it to gain minimal risks.
4. Increasing Demand
Because of industrialism, this rare metal’s demand continues to increase. It has become a very important metal in many industries because of its unique qualities not found in other metals.
It is very resistant to corrosion, and it has a very high melting point compared to silver or gold. Also, it is considered a very good catalyst and a good conductor. Hence, it is an important metal used to make electronics, medicines, and fibre optic cables.
5. Advantageous Price Comparisons
Many precious metals are used for investment purposes, and one of those precious metals is platinum which offers very interesting and unique price trends. Its demand continues to increase every day, and hence there will be a narrowing cost gap for it. However, if this trend continues, its price will also increase in the future.
Precious metal investors these days have seen more value to white metals such as platinum for hedging to battle inflation when the market is turbulent. With that being said, this precious metal has become more and more significant in terms of investments.
Author’s bio – Ester Adams is a farmer of words in the field of creativity. She is an experienced independent content writer with a demonstrated history of working in the writing and editing industry. She is a multi-niche content chef who loves cooking new things.
