Industry view | why platinum so expensive?Issuing time:2023-03-19 17:47 Article source: benzinga | translation: the world association of platinum investment The precious metal platinum is one of the most sought-after and valuable commodities in the world. Due to its scarcity, durability, and great value, it is highly valued by investors, numismatics, and precious metals traders. Why is platinum so expensive? This article will analyze the reasons behind the high value of platinum in depth. The price history of platinum Platinum has not always been so expensive, but because it is rare and difficult to mine, its price has almost always been highly volatile. Platinum's price history has been on a rollercoaster ride over the past two decades. In early 2000, platinum was trading at about $450 an ounce. Platinum prices remained relatively stable until they began to soar in late 2001, peaking at about $2,270 an ounce in May 2008. There are several major factors behind the rise in platinum prices, notably the weak dollar and a reduction in platinum supply due to problems at mines in South Africa. However, the spike did not last long. A few months later, the global financial crisis hit, causing platinum prices to plummet, hitting a low of $763 an ounce in November 2008. Since then, platinum prices have started climbing again, approaching $1,900 an ounce in 2011. The price of platinum has fallen steadily since its peak in 2011. The fall was exacerbated after Volkswagen's emissions scandal cut production of diesel engines and diesel catalytic converters, which use a lot of platinum. By September 2019, platinum was trading at around $786 an ounce, a 14-year low. However, the coronavirus outbreak has led to a surge in demand for precious metals such as platinum as investors seek safe havens. Platinum prices climbed to $1,200 an ounce in August 2020 and have been rising ever since. By March 2023, platinum was trading at less than $1,000 an ounce, up significantly from its 2019 low. Despite the ups and downs in price, platinum remains one of the world's most sought-after precious metals, with applications in industries as diverse as jewelry, cars and electronics. Although platinum is extremely rare, it wouldn't be so expensive if it wasn't in high demand and an important part of countless consumer and corporate products. The following are the main uses of platinum: Jewelry: The platinum glossy white appearance makes it ideal for high-end jewelry. It is commonly used to make engagement rings, wedding bands, earrings and other luxury goods. Cars: Platinum is a key component in catalytic converters for cars, which reduce harmful emissions from vehicle exhaust. Platinum is also used in spark plugs and other engine parts. Electronics: Platinum is used in the manufacture of liquid crystal display (LCD) screens (used in most modern televisions, PC monitors and laptops), hard drives and other electronic components because of its excellent electrical conductivity and corrosion resistance. Chemistry: Platinum is an important catalyst used in the production of a variety of chemicals, including fertilizers, pharmaceuticals and other chemicals. Petroleum: Platinum is used to refine crude oil into gasoline, diesel and other petroleum products. Medical: Due to its biocompatibility and corrosion resistance, platinum is used in medical devices such as pacemakers, dental implants and other surgical instruments. Investment vehicle: Platinum is a popular investment option, with many investors holding physical platinum bars or buying platinum exchange- traded funds (ETFs) as a hedge against inflation and market volatility. Now you can also buy platinum in an Individual Retirement Account (IRA). Read on for more details. Platinum's versatility and scarcity have pushed up its price, making it one of the world's most expensive metals. Platinum vs gold: Which is rarer? Platinum and gold are known for their relative scarcity, but platinum appears to be even rarer in the Earth's crust (so far, it's the only minable part of the planet). However, the metal is much scarcer in real life as it is difficult to mine and the margins are small. In 2022, global platinum mine production (excluding platinum recovered from catalytic converters or other sources) was about 190 metric tons, while gold production in the same year was about 3,000 tons. Platinum is rarer than gold, but it's not actually the rarest precious metal. Other platinum group metals such as iridium, osmium and rhodium are as rare as gold. Where to buy platinum (direct delivery or IRA use)? For those who want to buy platinum, it is important to understand the different ways to buy it. Platinum can be purchased with cash, credit cards, bank accounts or IRA and delivered to your door. Some of the best Precious metals traders offering direct delivery and purchases using an IRA are Advantage Gold, Birch Gold Group, Red Rock Secured, American Hartford Gold, Augusta Precious Metals and Lear Capital. Advantage Gold specializes in IRA roll-over business and has a world-class workforce. It has established a good reputation among its customers. Red Rock is the first choice for anyone looking to buy a small amount of precious metals, as it has a relatively low minimum investment requirement for gold dealers.
Is platinum a good investment today? Under the right circumstances, platinum can be a good investment. Platinum has been closely correlated with gold for most of its history, so it could be a good safe-haven investment. Platinum, however, has underperformed somewhat in recent years. Platinum's price is also heavily dependent on supply and demand. If you use the factors that determine supply and demand to build a strong theory of investing, a well-positioned trade may yield great results if you are lucky enough. However, all investments and transactions are still unpredictable. (Source: benzinga) World Platinum Investment Association Note: The information provided here is for informational purposes only and does not represent the views of the World Platinum Investment Council and does not constitute or should be construed as the investment advice of the World Platinum Investment Council. Note: This press release is selected from real-time industry news from foreign industry news websites and translated and edited into Chinese by the World Platinum Investment Association for your reference. In order to respect intellectual property rights, if any media want to reprint, please be sure to indicate the original source of the article and the source of the translation. |
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