If you are a person that seeks ways to grow his wealth, platinum is an investing opportunity for you. Platinum belongs to the small but rather expensive family of precious metals. Being expensive due to high demand worldwide, Platinum can be quite useful to investors who want to improve their portfolio’s value. In this article you will read some useful information about Platinum which we are sure will get you thinking.
Platinum is a chemical element with the symbol Pt and atomic number 78. It is one of the rarer elements in Earth’s crust, with an average abundance of approximately 5 μg/kg. It occurs in some nickel and copper ores along with some native deposits, mostly in South Africa, which accounts for 80% of the world production. Because of its scarcity in Earth’s crust, only a few hundred tonnes are produced annually, and given its important uses, it is highly valuable and is a major precious metal commodity. Platinum is used in catalytic converters, laboratory equipment, electrical contacts and electrodes, platinum resistance thermometers, dentistry equipment, and jewellery.
Even among the precious metals, Platinum is relatively rare. New mine output is only about 5 million troy ounces (150 Mg) a year. Gold mine production, on the other hand, is about 82 million ounces (2,550 Mg) a year, and silver production is about 547 million ounces (17,000 Mg). It therefore appears to sell at higher prices per product. Platinum is traded on the Mercantile Exchange in New York (NYMEX) and the Platinum and Palladium Market in London. Platinum ingots must be measured and labelled in a manner similar to how gold and silver are to be priced on most commodity markets.
The price of platinum varies along with its supply and demand; during periods of sustained economic stability and growth, the price of platinum tends to be as much as twice as the price of gold; while during periods of economic uncertainty the price of platinum tends to fall due to reduced demand, falling below the price of gold, partially due to higher prices of gold. In periods of poor economic performance, there is a drop in demand for heavy machinery, automobiles and others driven by platinum-containing engines, leading to a fall in metal demand and price. In comparison, a stable economy is rising the market for platinum. Therefore, platinum’s fortunes are largely based on global economic conditions.
You might see a sudden increase in metal demand whenever there are times of economic or political uncertainty. Fluctuations in shares, bonds and funds also cause investors by investing in precious metals to protect their portfolios. If there is a chance of securities appearing to be threatened, metals will play their role as a tangible asset that you can rely on to maintain its value.