The Price of Platinum

Platinum’s discovery was dated back to 700 BC and found in the famous casket of Thebes, an Egyptian sarcophagus. Moreover, the Natives Americans viewed the metal as a problem since it got in the way of gold mining. By 1774, platinum established as a transition metal with an atomic weight of 78.

1 oz Platinum American Eagle

Fast forward to today, platinum is considered being one of the rarest precious metals. In fact, the annual world production of the metal is about 8 million ounces, which is 10 percent of the world’s annual gold production.

1. Growing Demand

Platinum is valuable and trades as a currency and investment in forms of coins, bars, and ingots.

The growing demand appears in the industrial field as well as investment. Industrial metal encounters the effects of market fluctuations from the automotive and electronic industries.

At the same time, the metal utilizes in worldwide to produce about 20 percent of all consumer goods.

2. Limited Source of Supply

Since platinum is a limited source of supply, it is rarer than gold and silver.

The precious metal is the least reactive metal with high corrosion resistance. Also, the precious metal is dense, with high durability, and a very high melting point.

However, the metal itself is shiny and silvery white in color.

Similarly, the metal requires a large amount of energy and capital just to get one pure ounce.

 3. Price Performance

According to the Kitco chart, the price of platinum was over $1,800 per ounce 8 years ago.

In this case, platinum was double the price of gold and four times more than palladium.

The cost of the metal fluctuates greatly and often determines by current events, market speculation, and industrial demand.

Platinum in ten years growth

 4. All times low

The lowest platinum spot price per ounce in the past ten years is $777.50 in August of last year. Alongside with the spot price of $829.00 in January 2016.

Currently platinum is almost at it’s all times low at $816.50 as of today, June 11th, 2019. In modern days, gold is priced higher, but investing in platinum being at a low cost will trade higher in the near future.

Platinum is currently trading below $850 per ounce even though it costs $1,100 to mine each ounce. Keep in mind that platinum is a limited source, and miners could no longer sustain the production.

5. Investing in Physical Precious Metal

Not to mention, buying platinum bars are a collective investment since it is always best to physically own the metal. Although the precious metal is limited supply compared to gold and silver, this is one of the reasons why investing in platinum will make an excellent addition to any investor’s portfolio.

Discover Platinum Products

 

Leave a Comment

Your email address will not be published. Required fields are marked *