Platinum is a precious metal that is prized for its rarity and versatility. Unlike other precious metals, platinum has a wide range of industrial and manufacturing uses. As a result, platinum is in high demand but has a limited supply. This combination of factors makes platinum one of the most valuable precious metals in the world. In addition to being used as a store of value, platinum is also used in a variety of settings, from jewellery to automotive parts. Platinum’s versatility and scarcity make it a precious metal that is sure to maintain its value for years to come.
Supply and Demand
Platinum is a precious metal that is particularly rare, with only a handful of countries producing it. The global platinum supply comes from mines in South Africa, Russia, Zimbabwe, the US (Montana, specifically), and Canada. Platinum is a precious metal that is often used in manufacturing and industrial applications due to its unique physical and chemical characteristics. Platinum is highly resistant to corrosion and wearing, making it an ideal material for many manufacturing processes. In addition, platinum has a very high melting point, which makes it useful for many industrial applications. The demand for platinum has increased steadily in recent years, as more industries have discovered its usefulness. Some of the reasons why platinum is so sought after in manufacturing include:
- Exceptionally high heat tolerance/melting point
- Strong, dense, and durable
- Ductile (can stretch before it breaks)
- Catalytic effects for chemical reactions that are valuable to various processes
- Highly corrosion-resistant
- Holds up in very acidic environments
- Inert, preventing chemical reactions with other substances
- High electrical conductivity
- Well tolerated by the human body and radiopaque (X-rays don’t pass through it), relevant because platinum is used in the production of certain internal medical devices
Platinum is a precious metal that is increasingly being used in a variety of industries. Although over half of all platinum production is used to make jewelry, it is also a key catalyst in many industrial processes and is increasingly being used in the medical, electronic, automobile, defense and aerospace industries. Some additional uses for platinum include:
- Industrial-grade thermocouple wire
- Industrial-strength detergents
- Plastics and polyester
- Propylene from propane
- Petroleum from crude oil
- Specialty silicones
- Catalytic converters for vehicles
- Hydrogen fuel cells and the electric vehicles they power
- Medicines for cancers, blood disorders, and other conditions
- Laser-generating crystals
- Electronic devices that contain circuit boards
- Medical, geological, and other laboratory equipment
- Medical devices—especially implantable ones—such as those that measure or regulate cardiac, blood, nerve, and other activity in the body
- Fertilizers for industrial farming
Consider Adding Platinum to Your Portfolio
Precious metals are often used as a way to diversify an investment portfolio and help protect against inflation. Platinum is one of the precious metals available to investors, and it has some qualities that may make it appealing. Platinum is in demand, has limited supply and is considered rare. These qualities may make platinum highly appealing for long-term investors.
Like gold, platinum prices may also be influenced by economic conditions, monetary policy, physical demand, currency markets and overall investor sentiment. Adding platinum bars or coins to a precious metals portfolio can help add further diversification and potentially smooth out portfolio volatility. Investors should keep in mind that there are times when platinum may outperform gold and other precious metals, but there are also times when it may underperform. As with any investment, it is important to do your research before making a decision.
GMRgold was created to serve as a safe and stable diversification partner when buying, selling, and trading gold, silver, platinum, and palladium. Let us advise you on new products, portfolio diversification, IRA and 401(k) options, valuation of your collection, and other matters related to the precious metals market.
Call us today at 877-795-9585 or fill out our online contact form to learn more about our solid solutions using precious metals to diversify your portfolio.