Is Platinum Worth Investing In? (The Answer Is: Absolutely)
One often-repeated piece of advice to those who want to start investing is to just start.
Even with a few hundred dollars, anyone can begin the process of building a solid portfolio. And once you’ve started, you can look into diversifying your portfolio. This could mean investing in real estate, collectibles, and of course, precious metals.
Now, if you’ve already looked into gold and silver, you may be wondering, “Should I invest in platinum?” Here, we’ll talk about the advantages of investing in platinum, plus some tips before adding this precious metal to your portfolio.
Keep reading to learn more about plantinum.
3 Reasons to Invest in Platinum
Compared to gold and silver, platinum isn’t as popular as an investment metal (yet). This shouldn’t stop you from investing in it though, as platinum has several things going for it.
1. Higher Price
Platinum price based on material value will tell you how precious it is in comparison to gold, silver, palladium, and other investment metals. This is because this shiny white metal is quite rare (plus, it’s very difficult to extract). There are only two countries in which platinum is mined: Russia and South Africa.
Platinum also has a number of industrial applications. From automotive catalysts to jewelry to computer parts, and more, platinum is one of the most in-demand industrial metals.
In general, precious metals are better than other investment options such as real estate if you consider liquidity.
Like gold, platinum is highly liquid. Anyone can easily trade them for cash, whether that’s over-the-counter or through physical markets.
3. Ease of Investing
There are many ways to start investing in platinum. For newbies, it’s best to go with coins, while those who are looking for heavy investments should consider buying platinum bars.
Another investment route is to buy platinum stocks. Or you could opt for platinum ETFs. Your broker can help you with either endeavor.
Some Notes Before Investing in Platinum
Investing in precious metals comes with risks. Especially with platinum, whose prices are more volatile than gold, it helps to have a solid risk management strategy.
This doesn’t mean, however, that a newbie investor should shy away from precious metals altogether. Despite the risks, investment metals can offer solid returns.
To minimize your risks, consider working with an advisor. He or she can help you clarify your goals, as well as give you a clearer picture of your risk profile. Together, you can come up with a strong strategy for portfolio diversification.
Need More Investing Advice?
Now that you know the basics of investing in platinum, are you thinking of buying bars, coins, stocks, or ETFs?
Don’t forget to consult your broker or financial advisor before investing in precious metals. While this investment option has certain advantages, it would be foolish to jump in without a solid risk management strategy.
For more investing tips and advice, don’t hesitate to browse our other articles. We also cover other personal finance topics including loans, house buying and selling, and so on.