Investment in platinum looks very attractive as platinum looks set to continue the rise it has enjoyed over the past 6 months and , in time, may even enjoy the dizzy heights of last year.

If one wants to invest in platinum the first question is what type of platinum should one invest in?

The use of platinum’s in industry over this century has skyrocketed to include neurosurgical and dental apparatus, drugs for cancer treatment, computer and automotive equipment. In fact out of every five goods manufactured one contains or is made using platinum. Auto catalytic converters are a main use, especially these days with the attention on climate change and greenhouse emissions. Within auto catalysts, platinum converts harmful emissions into carbon dioxide and water. Almost a third of newly mined platinum is used in this way

Although the use of platinum in industry is increasing, the supply is very restricted. It takes about 6 months to extract platinum in a intricate and involved process. The amount of platinum mined is only 5 percent that of gold and there is so little of it that all the platinum ever mined would fill a normal sized living room.

So due to its increasing use and continued restricted supply, platinum makes for a real opportunity as a future investment

Platinum comes in many forms, bars, coins, strips and other fabrications. Many people like to invest in platinum coins. These are struck by mints around the world and sell for a high premium.

The United States Mint launched its first platinum bullion coin in 1997, the Platinum American Eagle. This launch effectively doubled the investment demand for platinum at the time and demand for the platinum eagle has never really diminished. The Platinum Eagle has now become one of the most popular precious metal coins in the world.

But the platinum investor is not restricted to platinum coins. He can now choose between legal tender coins, bullion bars, exchange traded futures and options or even various numismatic coin products.

The main question then is, what is the most economical way of investing in platinum for asset savings? Apart from the cost of the platinum itself, the additional costs to factor in when buying platinum are the premium of the dealer or seller and the shipping, handling and even insurance costs.
One can search around, on auctions, such as eBay, or precious metal dealers to find the best deal. Small platinum bars such as one ounce or one to ten grams are the cheapest to buy. They also carry the highest premium. The American Platinum eagle and other platinum coins also carry a premium. However, those that purchased platinum coins and bars in the 1990s even with a high premium at that time are now sitting back congratulating themselves as the value of platinum rose far above any premium they might have paid.

But there is another way of investing in Platinum recently set up. Gold Money, usually dealing in gold and silver bullion has recently set up the ability for clients to buy platinum. here one simply opens an account and can fund it with platinum along with gold and silver bullion of course. The vaults are fully insured and the platinum one buys is fully yours and not shared. One can buy as much or as little as as one can and it is an ideal way of investing in platinum without having to buy large bars or more expensive coins. One can open an account at Gold Money free and set up an account within hours. This is a bona fide company and will require sufficient ID in the same way banks and other custodians of value do.

This entry was posted on Sunday, March 29th, 2009 at 9:19 am.