Platinum: Why A Diversified Portfolio Can’t Be Without It


In the world of precious metals, the primary superstars have always been gold and silver and with good reason: both are highly recognizable and have long term historical value that can be easily tracked, both are minted in multiple denominations and from multiple countries, making recognition easy, increasing their liquidity.  However, a well diversified portfolio can’t put all of its eggs in one basket – even if that basket is made of gold or silver!  That’s why, to many investors, the perfect option is platinum.

Platinum has always been the dark horse in the precious metals market, tracking roughly with gold – sometimes moving a bit ahead, sometimes moving behind, but always nearby.  While multiple economists have discussed platinum being undervalued, the truth is that when given the choice between gold and platinum, most of the customers I’ve spoken to chose gold simply because they knew less about platinum.  Leading up to 2008, gold tended to trade higher than gold – and when gold spiked to record breaking highs near $2,000, platinum didn’t follow suit, leading many gold bugs to see platinum as inferior.  However, in the aftermath of the correction, we saw the true power of platinum: steadfast as ever, it overtook gold and is now far ahead with gold actually lagging behind!

One of the reasons why this might be the case is because platinum is primarily found in the southern reaches of Africa and in Russia with very little of it being mined elsewhere.  Given that Africa’s economic and political situation is ever shifting, Russia can be a difficult trade partner at the best of times, and that recent global tensions have arisen in the area due to Syria, I would expect that platinum has yet to even hit its stride!  With that in mind, how does one go about investing in platinum?

The most common way is through coins: the United States Mint produces an American Platinum Eagle, the Perth Mint in Australia produces Platinum Australian Koalas, and Platinum Nobles from the Isle of Man, and of course bars that have been verified and had the fineness and weight printed right on the bar.  These are also the primary ways to inject platinum into your IRA, which makes ownership even easier!  Even more remarkably, platinum’s stability year over year means that gains are exceptionally likely – even far into the future, which makes it even better for your Precious Metals IRA and retirement plan.

At Global Monetary Reserve, we believe that diversification is the best response to the troubles of the market and that proper diversification has to include bullion, semi-numismatics and rare coins as well as a mix of gold, silver, and platinum.  Given the history and the performance of platinum over the last decade, we’re proud to offer platinum products – give us a call at 877.795.9585 to talk with personal account advisors to discuss the best way to inject performance platinum into your portfolio.