Question 1

What is the reason behind the low price of platinum?

Accepted Answer

It's no secret that platinum is one of the most sought-after precious metals, often mentioned with others as gold, silver, and palladium. Maybe you've heard musicians bragging about their records going platinum or gamers achieving the platinum level. You may have even seen advertisements promoting platinum credit cards for exclusive benefits. It's clear that platinum is highly valued, even more so than gold, and its price exceeded that of gold in the 1990s.

Question 2

Reasons for the lower premium of platinum

Accepted Answer

The prices of platinum decreased due to the high demand for palladium for catalytic converters, especially in diesel vehicles. Palladium's effectiveness caused its price to rise, making it more expensive than platinum. The Volkswagen diesel scandal lowered demand for diesel cars, causing platinum prices to fall by 30%. Heavy taxes on diesel cars and concerns over safety and environmental impact led people to opt for other types of vehicles. This decreased demand for platinum in the automobile industry. Platinum production is centralized, with around 70% of the world's supply coming from the Bushveld region of South Africa. This centralization makes the supply market for platinum vulnerable to any issues that may arise in the region, such as power failures, political instability, natural disasters, wars, and other factors. These issues can directly impact the supply of platinum and its prices.

Question 3

Which is better: gold or platinum?

Accepted Answer

Regarding durability, the choice between metals depends on personal preference and budget. Platinum is preferable due to its collectibility and ability to maintain long-term value. Additionally, platinum is naturally white and hypoallergenic, so there is no need to worry about discoloration. Platinum is considered more valuable. For instance, rings made of platinum have higher densities and purities compared to gold rings. This is because it requires more platinum to make a ring, which is why platinum rings often cost around 40-50% more than gold.

Question 4

What is a Platinum Premium?

Accepted Answer

Industry professionals use the term premium or premium over spot to refer to a markup. This term indicates the additional cost added to the current market price per ounce for a platinum bullion product.

Question 5

What is platinum used for?

Accepted Answer

Investors may seek financial benefits by using precious metals like platinum and gold, which can serve as a hedge against inflation. Both metals have unique pros and cons, making them better suited for certain investors. While platinum is popular in jewelry, it is mainly used in catalytic converters for cars, trucks, and buses. This use accounts for approximately half of the demand for platinum each year. Platinum is crucial in reducing harmful pollutants by effectively converting emissions from vehicle engines into less harmful waste products.

Question 6

Where is platinum found?

Accepted Answer

Most platinum production worldwide is sourced from South Africa and the Sudbury Basin in Canada. Minor deposits of this precious metal can also be found in Zimbabwe, the United States, and Australia. Additionally, platinum can be obtained through the process of recycling.

Question 7

What influences the price of platinum?

Accepted Answer

Fundamentals of supply and demand are mixed up in a complex way. However, the intricacies of the platinum market are distinct because platinum is the rarest metal known to humankind. The top five variables influencing platinum pricing are supply and demand, the car sector, the jewelry business, industrial applications, and investment.

Question 8

How strong is platinum?

Accepted Answer

Platinum is roughly twice as hard as gold. It is still a somewhat soft metal that is easily moldable. Perhaps individuals confuse tarnish resistance with hardness, which has led to the idea that platinum is quite hard.

Question 9

What is the difference between white gold and platinum?

Accepted Answer

The white, silvery appearance of white gold and platinum may seem similar, but their composition is entirely different. White gold combines 75% pure gold and 25% palladium, while platinum jewelry comprises 95% platinum and 5% cobalt.

Question 10

How to buy platinum?

Accepted Answer

If you want to purchase platinum, investing in platinum bullion products like platinum coins and bars is the simplest option. BOLD Precious Metals offers a wide selection of popular platinum coins and bars at the lowest premiums.

Question 11

What is Platinum Bullion?

Accepted Answer

Bullion made of platinum is a highly pure metal sold by weight, not face value. One can buy platinum bullion in various forms, including coins, rounds, and ingots. Many governments officially mint platinum bullion, while third parties can produce it. This valuable metal is commonly purchased and sold as an investment product, usually in trade certificates instead of bullion itself, because it is bulky and challenging to transport in large quantities.

Question 12

What are bid and ask prices?

Accepted Answer

When buying a commodity, the highest price a buyer is willing to pay is called the bid price. Conversely, the lowest price at which a seller is willing to sell the stock is known as the ask price. The bid price is typically lower than the ask or offer price.

Question 13

What is the future demand for platinum?

Accepted Answer

According to the organization, the demand for platinum will increase by 28% globally this year compared to 2022, while supply will fall by 1% annually. According to the WPIC analysis, the platinum shortage in 2023 will be close to 983,000 ounces, a 77% increase from its previous prediction in March.

Question 14

Why buy platinum?

Accepted Answer

Platinum is highly sought after in the industrial sector, making it a popular and enduring choice. It is a more affordable option than palladium, another precious metal often used in industrial applications. As the rarest precious metal in the world, platinum is 30 times scarcer than gold. Its natural white hue beautifully complements diamonds and other colored gems. Additionally, platinum's weight provides a sense of substance when worn, setting it apart from gold.

Question 15

Is it better to invest in silver or platinum?

Accepted Answer

Your financial objectives, risk tolerance, market conditions, and other variables will all influence your investing decision between silver and platinum. Due to its scarcity, platinum is frequently more expensive than gold, but silver is affordable for investors on a tight budget.

Question 16

What is IRA platinum?

Accepted Answer

Investors can opt for a platinum IRA, a self-directed IRA comprising platinum coins and bars. The inclusion of precious metals in an IRA is subject to specific criteria and minimum fineness requirements as per the Taxpayer Relief Act of 1997. To qualify for eligibility, platinum coins, and bars must have a fineness of .9995 or more. Moreover, bars must be produced by an NYMEX- or COMEX-approved assayer/refiner or a national government mint. Examples of popular coins and bars for platinum IRAs are American platinum Eagle coins and PAMP Suisse platinum bars.

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Platinum Spot Prices

Metal Performance History

Platinum Spot Prices

Platinum Spot Price

Metal Performance History

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