Is It a Good Time to Buy Platinum? The Right Time to Invest

Author: Focus on the User | 4 min read

Platinum is one of the most precious metals and is also pretty rare. Its uniqueness and value can make it an exciting choice for investment. There are only so many assets that are a better store of wealth than platinum when it comes to alternative asset investments. Platinum is considered a high-end commodity, so platinum credit cards are given a higher status than gold.

Platinum has a good range of uses, from medical devices to making cars safer and electronic devices. However, platinum products have not been demanded as much for a few years. This white metal suffered from tough times in the past. Hence, should you invest in platinum now or not?

This article will discuss some advancements in platinum and whether or not it is an excellent time to buy platinum right now and invest in it. Therefore, if it is the right time, you can diversify your portfolio with platinum and boost your retirement savings!

Platinum Investment

The World Platinum Investment Council believes the platinum market will experience a greater surplus in future years. Therefore, the chances of the trading price of platinum rebounding are high as platinum demand may remain the same.

Platinum coins and bullion are great investment options. You can also invest in platinum through ETFs, stocks, or shares of platinum mining industries. You should invest in this financial asset when the prices are cheaper as it is expected to rise.

Platinum will still be used as an industrial metal in the auto industry, regardless of other alternatives. Despite palladium being used as a substitute metal, platinum still won't be eliminated from being used for industrial applications. Stricter regulations on harmful emissions will call for more catalytic converters. And both platinum and palladium will be required for vehicle engines, increasing their demand. Platinum has many uses for jewelry, hydrogen fuel cells, catalytic converters for cars, and even for treating cancers.

This shows us that platinum has various uses. Suppose you invest right now and protect your platinum holdings. In that case, you will benefit later when the platinum prices increase and its annual demand increases. Then even if you choose to sell platinum, your investment return will be greater.

You can invest in platinum scraps such as jewelry, oxygen sensors, filings, and floor sweepings from industrial locations. Moreover, you can also invest in platinum through electrodes and electrical contacts.

Why Should You Be Buying Platinum Now?

The reason why you should be investing in platinum is that its price is low now. Typically, you would expect the price of gold to be lower than platinum. It is expected that the gold price will even double that of platinum. However, that is not the case. For certain years an ounce of this yellow metal costs more than an ounce of platinum.

The low price of platinum is because, as time has passed, the value of platinum as a jewelry asset has reduced. Many years ago, platinum was used for jewelry due to being rare, and luxury metal platinum jewelry left an impression on others. However, gold and silver have been used for jewelry in the last decade. And you can observe many people investing in gold and silver jewelry for weddings and special event gifts.

Additionally, the price of platinum has become cheaper because of the diesel emissions scandal of Volkswagen. This scandal stated that diesel engines were contaminated and the exhaust emission could be harmful. Hence, the industrial demand for diesel engine cars was reduced. People started opting for electric vehicles. And this shift also reduced platinum demand levels as platinum is used as a catalytic converter for diesel vehicles. Additionally, the diminished demand made it to be cheaper.

However, it is forecasted that vehicle demand will increase, raising platinum prices too.

Another reason platinum prices fell is because of volatility in supply, as platinum is centralized and mainly obtained from a region of South Africa known as Bushveld. Instability in platinum supply can cause its price to fall. Moreover, the covid-19 pandemic caused many hurdles for the platinum mining companies in South Africa, which are the largest producers of physical platinum. Any other natural disasters and economic instability can also impact platinum production.

Therefore, if you buy platinum now, you will get it at a cheaper price than buying it later. If the demand for platinum rises again, the price will also rise. So, buying it at a cheaper price will benefit you in the upcoming years.

And as legislation for emissions is becoming stricter, platinum demand for the catalytic converter is also increasing. And even though palladium is being used as a substitute, platinum is also required for different engines.

Even though platinum supply is in a surplus, causing its prices to fall, this will change according to the platinum price forecast.

Is Platinum a Good Investment?

Whether platinum is a good investment depends on personal investment goals and objectives. Platinum is a suitable investment because, being a precious metal, it can aid in portfolio diversification.

You can consult a financial advisor and research whether a platinum investment suits you. Despite the many benefits, investment in precious metal commodities is not the right decision for everyone. Hence, it is important to identify how well it will work for you.

The risk tolerance, financial status, and experience of the individual investing can determine how good the investment is.

Wrapping Up

Platinum is a valuable commodity to invest in for your retirement IRA. It is a luxury metal and has many industrial uses too. Therefore, according to your investment objectives investing in platinum might be a good idea.

Considering the low prices of platinum and its high value, if you invest in platinum right now, you will surely see the benefits in the future. Moreover, this precious metal asset can help you diversify your investment portfolio. In times of economic downturns, your portfolio will remain balanced.

We hope you make a wise investment decision and decide whether your investment choice should include platinum!

Platinum Resources

Discover How to Effortlessly Rollover Gold Into Your IRA

Our free eBook covers everything you need to know before you start diverisfying your retirement with precious metals like gold or silver.

Was this resource helpful?

Disclaimer: Content on this website is not intended to be used as financial advice. It is not to be used as a recommendation to buy, sell, or trade an asset that requires a licensed broker. Consult a financial advisor.