Value of the Precious Metal Platinum
- As early as the 1780s, platinum was used in making crucibles for glass production. Later, it was used in jewelry. But because platinum availability was rare, the use of it in jewelry remained limited. In the 19th century, finer refining techniques were discovered, which increased the availability of platinum. Since then, it has been using in gun parts, in fuel cells and in the production of caustic chemicals. It is even used in the process of purification of hydrogen. It is also used in the making of neurosurgical and dental apparatus, in the manufacture of drugs for cancer treatment and in automotive equipments.
- One of the means to invest in platinum is to own the metal itself by buying platinum coins. Investors should look at buying platinum bullion coins rather than the collectible platinum coins. However, for larger investments, it would not make sense to invest in coins alone. It is better to go for non-physical or paper platinum.
- Instead of coins, you can invest in platinum stocks and mutual funds. You can also buy platinum options and futures. This is a relatively risky investment option, but the returns also are high. In an options contract, the holder does not necessarily buy or sell the platinum. So the risk for the holder is limited only to the cost of the option. But the disadvantage is that it can expire without any value if the price of platinum does not increase during the lifetime of the option. So investing in options is not a recommended choice for the novice investor.
- Similar to gold and silver, the price of platinum is quoted in ounces and as of May 2010 the price was more than $1,700 per ounce. The price varies depending on market trends, and the current value easily can be found on the Internet and in newspapers.
- Platinum as an investment is still in its early stages, especially when compared to more established markets of other metals such as gold and silver. But because of its steady increase in price, it is considered a safer form of investment. Also, because it's rare, more and more investors view it is a legitimate investment option that remains immune to the general economic events.
