Platinum as a Commodity – A Brief History

Posted - August 30, 2023
Platinum as a Commodity - A Brief History

The Platinum Play in the Commodities Market

Those new to the precious metals game might want to take a closer look at platinum and how it plays as a commodity. If you’re interested in investing in platinum, now would be a great time to take a closer look at this remarkably rare and yet very active precious metal. How can you get in the platinum game? Let’s consider some options. 

As a commodity, platinum comes about in many shapes and sizes. It can be purchased as a bar or a coin. It’s also available as a form of jewelry and even sold as an ETF (exchange-traded fund) on the London Stock Exchange. Though it is an exceedingly rare precious metal, it’s not difficult to find a buyer and in questionable economic times, platinum is generally very well positioned as an investment opportunity. 

The Platinum Commodity Conundrum. Why Platinum, Why Now?

Investors and collectors alike revere platinum both for its shine and for its impressive industrial properties. Generally speaking, when economies are firing on all cylinders, platinum performs very well. Its value as a commodity goes hand-in-hand with other high-end precious metals such as gold. 

However, that’s not typically the case when economies are struggling. Platinum tends to lose its value and fall out of the race with gold. Why? When economies slump, investors generally opt for the obvious safe haven that is gold. As a result, the demand for platinum dips along with its associated value. 

It’s an unexpected pattern and in more ways than one. Consider the fact that platinum is more scarce than gold and far more expensive to extract. Yet in recent years, platinum generally prices for less than gold. 

That alone is a curious and potentially lucrative factor for investors to consider. As a commodity, platinum appears to be ready for some gains. When certain economic and international conditions settle, one should then expect to see platinum emerge as a leading investment opportunity in the precious metals market.

Platinum as a Commodity is a Win-Win for Your Portfolio

When it comes to diversifying your investment portfolio, platinum is always a solid option. Whether you buy in with bullion, bars or jewelry, the beauty and shine of the precious metal alongside its reputable history of market performance and sustainability means that your investment in platinum as a commodity could potentially pay off nicely as a long-term asset. 

And with the economic conditions as they are, platinum looks very attractive as a buy right now. Many in the precious metals market are keeping a very close eye on this commodity and its pricing spectrum. The investment axiom ‘buy low, sell high’ looks rather apropos right now when it comes to platinum as a commodity. 

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