A Beginner’s Guide to Investing in Platinum

investing in platinum

If you’ve ever heard of platinum investing but aren’t exactly sure where to start, this article is for you!

Investing in precious metals is a smart way to protect against inflation. It can also provide a buffer in uncertain economic times.

There’s a lot more to know about investing in platinum than meets the eye, though. Here’s a beginner’s guide that will tell you everything you need to know!

Why Invest in Platinum?

Platinum is a rare, durable precious metal. It’s price is dependent on various factors:

The Cost of Mining and Producing Platinum Bullion

Extracting platinum ore involves vast resources for labor, equipment, and supplies. All these costs, as well as the supply and demand cycles, affect the price when you’re buying platinum. 

When the demand for platinum rises, the price increases. Likewise, when production slows down, consumers pay more for the metal. Platinum’s popularity in jewelry makes it more susceptible to sudden spikes in demand.

Trends changing in one industry (like fashion) can have a dramatic effect on the price. Political and socio-economic conditions can also play a part.

Some of the Best Ways to Invest in Platinum

You have several options if you’re looking into how to invest in platinum. The first is the most obvious: owning physical assets (e.g., coins, bars, and ingots) that contain platinum. If you want to be able to hold your metal with your hands, this is your best bet!

Another option is with certificates. These are financial agreements that give you ownership over an amount of metal. This can be from one ounce of precious metal or up to 100 ounces or more. These can come with varying degrees of risk.

Potential Risks Related to Investing in Platinum

While there are benefits to investing in platinum, there are also certain risks that you should be aware of. These risks include:

Price Fluctuations

The price of a commodity can change at any time. If market conditions turn against you, you may find yourself trapped with an asset that loses much of its value over time.

Losses Due to Poor Investments Decisions

Investing doesn’t always mean making money! If you make poor investment decisions, you could end up losing money rather than making profits.

It’s best to get investment advice from an expert. Remember to ask questions regarding platinum vs silver investment too!

Where to Buy Platinum Safely

The first step to buying physical platinum is to make sure you’re buying from a reputable dealer. When it comes to precious metals, there are a lot of shady dealers out there who would be happy to take your money and run. Or even sell you fake coins or bars.

Be wary of websites offering to sell you physical platinum at unbeatable prices. Be extra vigilant with those that don’t charge delivery fees.

Look for one with good customer service and return policies. This way, if something goes wrong with your order, you know the policies will cover you. 

Next Steps to Take if You Want to Invest in Platinum

Investing in platinum is like any other investment. Start with a small, affordable investment, that you can pull out of if you decide it’s not for you.

In choosing investments, it is important to know what you’re getting into as well as who you’re buying it from. To find out more, visit our blog.