How to Invest in Platinum

Platinum is widely used in the automotive, industrial, jewelry and investment sectors, and has a total investment demand forecast at 350 koz. Here's why investors should take note of this metal, and the basics of how to invest in platinum.

how to invest in platinum

Although platinum is a rare metal, it is the third-most traded precious metal in the world. Demand for platinum is growing as it is widely used in the automotive, industrial, jewelry and investment sectors.

In 2016, the World Platinum Investment Council (WPIC) stated that total investment demand for platinum in 2016 is forecast at 350 koz. On the average, performance of platinum is in line with the other precious metals, gold and silver. WPIC sees a growth in demand growth for the metal over the medium term.

How to Invest in Platinum

Consumers and investors who are interested in platinum have several options. The first is to purchase physical platinum bars or coins directly, which can be done through a bullion dealer.

Another option is to buy platinum through an exchange-traded fund (ETF). ETFs are securities that track platinum like an index fund, but that trade like stocks on an exchange.

The Sprott Physical Platinum and Palladium Trust (NYSEARCA:SPPP) provides investors with access to the physical platinum bullion market while allowing the flexibility of an exchange-traded security. ETFS Physical Platinum Shares (NYSEARCA:PPLT) aims to make investing in platinum more accessible by offering a comprehensive range of exchange-traded commodities.

A third option for investing in platinum is, of course, to own shares of a platinum mining company. Some of the top platinum companies include Wallbridge Mining Company (TSX:WM,FWB:WC7), Impala Platinum Holdings (JSE:IMP,OTCPink:IMPUY), Lonmin (LSE:LMI) and Anglo American Platinum (LSE:AAL).

 

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Securities Disclosure: I, Pia Rivera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: Wallbridge Mining is a client of the Investing News Network. This article is not paid-for content.

 

 

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