Platinum is essential due to its diversification to the portfolio of many investors. But, buying it requires some understanding of this precious metal and research about the precious metals companies that you want to invest in. There are ways to get started with platinum investing and approach it in the right direction.
Ways to Buy Your Platinum
- Platinum Bullion. You can find beautiful 1 to 10-ounce bars of bullion products, in which you handle their storage as you see fit. You can also trade or sell it anytime you want. Platinum bullions are also available in rounds.
- Platinum Coins. As with bars and rounds, the coins have similar value with regards to the Platinum content. However, these coins carry more premiums according to collectability and rarity. If you like art and history, Platinum coins are an ideal investment.
- Allocated Platinum Accounts. In this case, a bank will use your money in investing Platinum and secure it in a safe place until you are ready to cash out this investment. After that, you can take back your money from the bank according to the current price of the precious metal, as compared to the time of your original investment.
- Exchange-Traded Funds. Next to gold and silver, Platinum is a popularly traded commodity in the precious metals industry. Buying platinum ETFs is an alternative to buying the actual metal.
When the time comes that you want to sell your Platinum, there are some factors to consider:
Determine your timeframe for selling
What is your objective in this kind of investment? Do you want to keep your bars and coins for much longer, or want to make a profit for it quickly? Regardless of your goal, it is essential to have a plan, in which you can benefit from it.
What is the value of physical Platinum?
Find out if the current price will blast off, overextended, or a pullback. If it does not meet its recent high, it could continue falling or bounce back.
Know the demand for Platinum
This precious metal has a wide range of practical uses that go beyond investing and collecting. For example, the chemical industry utilizes it as a catalyst for silicone, benzene, and nitric acid production. Platinum is also used to increase the fuel efficiency of cells. There are many more uses that further increase the value of this precious metal.
Use it as a hedging strategy
You can use platinum as a hedge for stocks against a bear market. If the price of the precious metal rises in the period of a bear market, decide if you will keep your Platinum for many years or choose to sell them high.
What is the commission of a Platinum dealer and seller?
Know the typical fee to buy Platinum. If you put a limit order, the fee can increase compared to a market order. Look somewhere else if the fee goes higher than the typical fee.
Find a reputable dealer and seller
You will want to do business with a reliable seller or dealer. Check their media coverage, online reviews, or any awards they have obtained.
The value of Platinum comes from its uncertainty and scarcity over its supply in the future. It is a great investment asset and provides a way to express an optimistic view of industry growth. Also, you can use it as an insurance policy against the dollar’s weakness, as well as use it as a store of value.
Author Bio: John Navarra is a copywriter and content strategist. She helps businesses stop playing around with content marketing and start seeing the tangible ROI. She loves writing as much as she loves the cake.