What is platinum bullion and why is it so popular? Platinum bullion includes both platinum coins as well as bars, or biscuits as they are often called, and ingots.

The difference between bars and ingots is that the bars are pressed and ingots are made by poring platinum into a mould. From a collectors point of view the coins and small bars are the easiest to collect. The larger bars, such as 10 kilos or the ingots are very expensive of course as platinum is almost twice the cost of gold.

The coins are a favorite of collectors and many mints now produce proof and brilliant uncirculated (BU) .9999 pure platinum coins for collectors. These should always be supplied in plastic coverings, usually called bubbles, to protect them from the environment and grimy fingers. One should never ever touch a proof or BU coin with ones bare fingers as this can cause crack marks which will heavily reduce the value of the coin. Often the coins are in presentation cases and they should be left in the cases.

Usually this is a good way to buy platinum as, being coins and legal tender, there is no tax on the purchase. There may be tax on the purchase of platinum bullion bars as these are not legal tender but the purchase of precious metal and usually for investment purposes. However despite this platinum bullion bars are a good way of accumulating platinum as the mark up or premium is somewhat less than with the coins and if one is buying the larger bars the mark up is not much above the spot price.

Although gold and silver have enjoyed a stead rise recently platinum has remained fairly steady. It still represents a good buy however as it continues to retain its value in the face of inflation and does sometimes enjoy a small raise. In the long term Platinum has done very well.

In small bars and coins platinum is easy to transport and store and can be traded back into cash in most countries of the world.

Accumulating platinum bullion is as good, if not better, than money in the bank and can also be an interesting and diverting hobby.

This entry was posted on Tuesday, September 26th, 2006 at 5:40 pm.