Here are some useful tips on how to buy platinum.

First it is a good idea to understand a bit about platinum. Platinum is more rare than gold and all the platinum ever mined would fit into your bedroom. There is not very much of it. It melts at double the temperature of gold and is much harder and more long wearing. It is a shiny and silver looking precious metal and goes well with various diamond and other gemstones as well as opals and pearls.

There are different types of platinum one can buy. Platinum coins, platinum bullion and even platinum in custodian form, which has some useful advantages.

You can buy platinum in the form of coins such as American Eagles, Canadian Platinum Bear coins among others. The price of Platinum coins usually incurs a sizable premium. Coins have to be struck and made presentable as they are also legal tender with a face value. Of course that face value is far below the value of the platinum contained within the coins. But the premium can be up to twice the value of the platinum. Platinum coins are usually presented in attractive boxes and are of mint or proof condition. This means they are sealed in plastic usually and should not be touched by hands or fingers. These can cause thin hairline cracks in the surface and reduce the value of the coins. Also when you buy platinum coins there is shipping storage and insurance issues to be concerned with.

Platinum bullion bars are a better deal although you have to buy more platinum in one hit to take advantage of it. One kilo platinum bars have a lesser premium but still have the same shipping, insurance and storage issues of course.

An alternative is to buy platinum from GoldMoney. Here you can open an account and buy platinum to put into the account. The advantages here are:

You can buy any amount without incurring an extra charge or premium.
The platinum you have is stored in bank vaults in either London or Zurich and is fully insured and audited on a regular basis.
There is no shipping to worry about as the platinum does not move. Simply the ownership of the platinum residing in the bank vault changes as you buy, and even sell your platinum.

This is probably the simplest and easiest way to buy platinum. It incurs less expensive and less work and, when it comes to how to buy platinum, beats other methods hands down.

This entry was posted on Tuesday, August 4th, 2009 at 10:38 am.