Knowing how to buy investment platinum can make all the difference when it comes to investing in platinum.

First there are many forms of platinum from bullion bars to small pressed bars, called biscuits, to wire, to coins and even jewellery.

The most expensive platinum is platinum jewelery of course and this is certainly not the best investment option. There is a very high mark up or premium due to the fabrication process, of say platinum rings for example, as well as the fact that the jeweler will want his cut along with the wholesaler and manufacturer.

Platinum coins are a good investment although the mark up or premium is higher than on bars. There is a lot more work done on the fabrication and production of platinum coins and, of course, they have to come in nice presentation boxes which the buyer pays for. Fortunately the sale value of platinum coins is fairly good and you can still sell for the platinum value plus a bit more in such places as eBay.

But the more you can cut out of the mark up (mark up: the amount a seller adds to the price to cover his costs and make a profit) chain the better so it is always better to go to the manufacturer if possible.

Probably the best form of platinum to invest in would be the smaller bars unless you can afford the larger bars or even ingots. The larger bar you buy, of course, the smaller the premium you will have to pay per ounce for the platinum.

If one can only afford a small amount then buying smaller one ounce bars on a regular basis would be the way to go. It is amazing how much platinum you can accumulate this way. Just a bar a month would give you, over a period of time, a sizable investment in platinum.

Ensure you buy from an authorized seller or dealer in precious metals. Check their credentials, ease of contact and returns policy. All these should be clearly available.

If you buy platinum bars from an auction, such as eBay, then try to pick a power seller with excellent feedback. Check over their feed back to see what it is. There are various ways of bidding but one of the favoured methods is to not make any bids until the last minute. It is a matter if skill and some luck involved of course. But with some study and persistence you can buy investment platinum at a reasonable cost this way.

So with the above points in mind it should not be too hard to know how to buy investment platinum

This entry was posted on Wednesday, February 25th, 2009 at 10:28 am.