Why Buy Platinum Coins and Bars? | 7 Reasons to Add Platinum to Your Portfolio

 

Why Buy Platinum Coins and Bars? 

It’s undeniable – gold and silver are the most popular precious metals. Every year, billions of dollars in gold and silver coins, bars, and rounds change hands. Comparatively, the market cap for platinum is rather small. Although platinum isn’t quite as popular as silver or gold, it still deserves a place in your portfolio. 

In fact, some evidence suggests that platinum may be the most underrated precious metal. Platinum is one of the most useful precious metals on Earth. It plays a key role in the production of automotive vehicles, dentistry equipment, and countless other products that consumers use every day. Platinum is also far rarer than silver and only slightly more common than gold, making it a historically valuable investment. And, perhaps more importantly, platinum coins and bars are beautiful. 

That’s not all, though. Today, we’re walking you through the top seven reasons why you should add platinum to your investing wishlist. Along the way, we’ll also answer some of the most common questions we receive about one of humanity’s most useful metals.

The Top 7 Reasons Why You Should Be Investing in Platinum Coins and Bars

Of the three most popular precious metals – gold, silver, and platinum – platinum is the newest on the scene. The whitish-silver metal was only first discovered in 1735 by Antonio de Ulloa, a Spanish Navy officer and scientist. Once metallurgists were able to isolate and melt the precious metal, it was initially prized for its aesthetic value. Platinum jewelry and decorations became so popular in the late 18th century that it is now known as Spain’s “Age of Platinum.” 

Today, platinum occupies a strange place among precious metals. Like gold and silver, platinum is rare, beautiful, and prized for its use in bullion coins, bars, and jewelry. The bulk of platinum’s value, however, actually comes from its various industrial applications. In the 1950s, automotive manufacturers realized that platinum could be used to create catalytic converters, which reduce harmful pollutants as cars convert fuel into energy. 

The unique cross-section of aesthetic and industrial appeal helps make platinum an excellent – and often underrated – precious metal to invest in. 

Is platinum a good investment? Here are seven reasons why platinum is a great precious metal to add to your portfolio: 

1. It’s beautiful. 
2. It’s always in-demand and useful. 
3. It offers excellent historical price-action. 
4. It’s affordable compared to gold. 
5. It’s becoming more popular. 
6. Global platinum supplies are under threat. 
7. Platinum is an excellent safe haven investment. 

Want to learn more? Keep reading – this page is all about the reasons why so many investors are bullish on platinum coins and bars. 

1. Beautiful Appearance 

Platinum is beautiful. The look of a quality platinum coin or bar is tough to match. Some new investors may confuse platinum’s appearance for silver, but there are a couple of important differences that you should understand. 

How are platinum vs. silver different? First, platinum is shinier than silver. Both metals have a silverish appearance, but silver itself is slightly duller than platinum, which has a reflective, shiny look to it. Second, platinum does not tarnish over time. Pure silver itself cannot tarnish, but certain impure silver products tarnish over time when exposed to the open air. 

The lustrous shine of platinum makes the metal one of the most beautiful elements on the planet. Pure platinum coins and bars are shiny, reflective, and highlight the gorgeous designs we love to see on our investment-grade metal products. 

2. Exceptional Demand and Usefulness

Platinum’s industrial demand also makes it a uniquely valuable precious metal to add to your portfolio. Over the past decade, platinum’s value has been closely correlated with demand for traditional automotive vehicles. In the 1950s, scientists discovered that both platinum and its sister metal palladium are perfect catalysts to help filter out harmful pollutants in gas-powered vehicles. 

Since then, global demand for platinum has skyrocketed. In fact, only a small percentage of platinum mined annually goes to the bullion investing industry. Most of the world’s platinum goes to the automotive industry. 

What drives the price of platinum? The biggest driver of platinum price-action is demand from the automotive sector. The past three years have been difficult for the platinum industry because the rise of electric vehicles has mitigated demand for catalytic converters. However, platinum will continue to be a valuable commodity as long as traditional cars are being manufactured. 

High industrial demand makes platinum a two-pronged investment. Platinum prices increase when the metal becomes more popular among collectors, but prices can also go up in correlation with spikes in demand for traditional, gas-powered automotive vehicles. 

3. Excellent Historical Price Trends

Since platinum prices have fallen over the past year, some investors may not know about the metal’s excellent track-record as a long-term investment. At the beginning of the year 2,000, platinum sold for around $425 per troy ounce. As of July 2024, an ounce of platinum is worth nearly $975. 

This only scratches the tip of the iceberg of platinum’s potential as a profitable investment, however. What is platinum’s highest price ever? Platinum prices have spiked several times over the past twenty-five years, peaking at an all-time high of $2,213/oz in March of 2008. As you’ll learn later in this guide, platinum’s rise to prominence in 2008 helps illustrate its exceptional function as a safe haven asset. 

Excellent historical price trends make platinum a relatively safe and consistent store of value worthy of adding to your portfolio. 

4. Affordability Compared to Gold 

Which is cheaper, gold or platinum? Throughout its history, platinum has almost never been more expensive than gold. As of July 2024, an ounce of gold sells for around $2,400. By comparison, you can now buy a 1 troy ounce platinum coin or bar for less than $1,000. Despite its affordability, platinum is nearly as rare as gold. 

For investors who want to put their money into rare, useful precious metals, platinum is an affordable option compared to gold. Its comparative affordability makes platinum one of the best precious metals for budget investors – or anyone looking to diversify their collections. 

5. Increasing Popularity 

Platinum is also becoming an increasingly popular category of jewelry, coins, and bars. Just a few decades ago, finding a quality platinum coin from a reputable mint was a difficult task. Over time, investors have come to realize that platinum is more beautiful than silver and also more affordable than gold. The unique, lustrous shine of a platinum bullion product is tough to beat, and the metal’s increasing popularity illustrates the value it offers investors. 

Is platinum easy to purchase? Compared to gold and silver bullion items, platinum still lags behind in terms of availability. Most government mints, including the U.S. Mint and the Royal Canadian Mint, now produce platinum coins. Private mints frequently release beautiful platinum bars of various sizes, which signals far better availability for the metal than we would have seen a couple decades ago. 

For investors who understand the value platinum can add to their portfolios, the increasingly wide availability of genuine platinum coins and bars has been a real boon. 

6. Ongoing Supply Disruptions

In most industries, supply disruptions is a term nobody wants to hear. As precious bullion stackers already know, supply shortages are not a dirty word for investing. Shortages in supply cause the value of rare metals to skyrocket, and supply disruptions are an ongoing issue among platinum group metals. 

What leads to high platinum prices? Over the past two decades, mine closures and platinum supply disruptions have led to several major spikes in platinum prices. Since platinum’s value comes primarily from the metal’s industrial usefulness in the automotive industry, shortages in either platinum itself or in automobiles can have a positive impact on platinum’s spot price. 

Ongoing supply disruptions help make platinum an excellent investment, since shortages stemming from supply disruptions lead to quick – but limited – price surges for platinum bullion products. 

7. Safe Haven Potential 

Is platinum a safe haven asset? Like gold and silver, platinum is considered an excellent safe haven asset. A safe haven asset is an investment that tends to perform well during times of economic, political, geopolitical instability. Platinum prices hit an all-time high in 2008 on the heels of the housing crisis in the United States, and prices spiked again during the COVID-19 pandemic. 

Platinum’s role as a safe haven asset makes it an excellent investment. Gold and silver can also play this role in an investment portfolio, so your best bet is to diversify your portfolio using a combination of all three precious metals. 

Final Thoughts: Why Buy Platinum Coins and Bars? 

Platinum is often overlooked by precious metal stackers. That’s a shame, because platinum coins and bars have quite a bit to offer. Investing in platinum coins and bars allows investors to benefit from the metal’s rarity, beauty, and industrial demand. In addition to the benefits offered by all precious metals, platinum products provide investors with a unique value proposition that is difficult to match. 

Are you ready to add platinum coins and bars to your portfolio? Shop Hero Bullion’s entire inventory of platinum bullion products! 

You might also be interested in:

• Gold or Platinum: What’s the Better Investment?
• A Brief History of Platinum Coins
• Is Platinum a Good Investment?