That’s the million-dollar question: should you buy platinum coins or continue to invest in gold? We’re assuming that you’re going after the truly rare metals here, though silver is always another option. However, there’s little chance of silver suddenly skyrocketing 100% to compete with gold or platinum! Is investing in platinum a good business decision? Let’s consider four points.
1. Platinum is a volatile metal.
Platinum is like silver in that the price fluctuates often. In 2008, in just under a year, platinum was as low as $800 and has high as $2,200! Why does platinum move with the market while gold retains value even in recession? It is because platinum is used in a variety of commercial and industrial businesses. Platinum is commonly used in manufacturing, whereas gold is known primarily as an investment commodity. If you plan on buying platinum coins with the intent to appreciate value (and don’t want any scares), then maybe you should stick with gold.
2. Platinum is rarer.
The rarity of platinum, even surpassing that of gold, all but guarantees that the price will be higher. Currently, platinum is selling at about $2,000 per troy ounce. This makes it almost 100% more expensive than gold. If you plan to buy platinum coins, then these actually have a greater chance of appreciating in collectable value than gold coins do. Naturally, platinum bullion is worth more than gold bullion, though both metals will retain their value over the course of time.
3. Platinum resources are rarer than gold resources.
The demand for platinum is increasing even as the world supply dwindles. Sources of platinum production are scarce. In fact, 90% of all platinum is found in South Africa and Russia, and it is in a few particular areas at that. There are about ten mining companies worldwide that work with platinum. If you plan to buy platinum coins, or platinum bars, in hopes of attaining a once in a lifetime rarity, then this metal has the edge over gold.
4. Why not buy platinum coins and gold coins?
Bearing in mind that you might not be able to afford much platinum, it’s wise to diversify your precious metals assets as much as possible. Why not try to invest 10% total of your assets in precious metals, with 7% gold and 3% platinum? For that matter, you could even invest in silver and split it 6%, 3% and 1%. Don’t feel obligated to invest all of your income in the most expensive metal. While the opportunity to buy platinum coins is fading fast, there are enough resources to last another few years. Now is the time to think about investing in this beautiful and durable metal.
If you are interested in diversifying your portfolio, then visit a platinum coin dealer in person or on the web. Make sure that the coins you are looking at are certified by a reliable organization and that the dealer truly understands the market he represents. Not every dealer really knows what’s happening in numismatics or metals. Remember, much of what you buy will be at the trusted word of a good coin dealer!