Why Not Invest in Platinum?

Many precious metals investors have a portfolio split mainly between gold and silver, with maybe a little bit of platinum and palladium to increase diversity. Platinum, the king of the precious metals, has seen its price drop well below that of gold, causing many investors to allocate more of their portfolios to platinum.


The rarest of the big three precious metals, platinum is whitish in color and malleable. Compared to gold and silver platinum has a much shorter history in the financial sector, yet platinum is steadily becoming one of the most profitable hedges against inflation in the marketplace.

Platinum metal investing comes in a variety of types including coins, exchange traded products on the New York Mercantile Exchange and Swiss Bank accounts that offer the investor immediate buying and selling of platinum as a form of currency. Of the pure bullion forms, platinum coins have become more popular in recent years. While platinum is one of the scarcer precious metals and comes in many different forms, there are some advantages of investing in platinum coins and owning them.

In growing markets, platinum attains a noteworthy fiscal premium over other precious metals. Since this precious metal is used in many consumer goods, demand for platinum can rise significantly, making it a profitable short or long-term investment. Gold and silver prices do not fluctuate as much as platinum prices (or rhodium prices), creating more possibilities for investors to make large, short-term gains.