How to buy platinum
Platinum (Pt) is a silvery-white precious metal with a number of industrial uses, but it is also possible to invest in platinum either in coin or bullion form. The metal is sold by government mints, coin shops and through specialty websites and catalogs. As with any investment in precious metals, it's possible to realize a significant profit by buying and selling platinum, but it's also possible to lose a great deal of money.
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Instructions
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Study the market for platinum in detail using online and other sources. Even more than gold or silver, platinum is a speculator's metal. Because of its industrial uses, the demand for platinum --- and thus its price --- tends to follow worldwide economic conditions, which can change rapidly. The better the outlook for industries that use a lot of platinum, such as jewelery or the automotive business, the better the outlook for the price of platinum, unless there's an unexpected uptick in supply.
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Decide whether to buy platinum in coin or bar form. Several national mints make platinum coins for sale to investors and coin collectors, but the number of coins minted tends to be low compared with gold or silver bullion coins. Some platinum coins, such as the One Noble coin from the Isle of Man, sell for a sizable premium compared with the spot price of the metal because of collector demand. Platinum bars, by contrast, tend to sell closer to the spot price of platinum.
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Establish a relationship with a platinum dealer you trust. This is especially important since platinum in any form is a high-value item. Dealing face-to-face with the proprietor of a coin shop has its advantages if you are a good judge of people. However, the relative rarity of platinum might mean that a local coin dealer isn't able to keep much of it in stock. Though more impersonal, dealing with a reputable mail-order or Internet dealer may offer you a more steady supply of the metal.
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Provide for safe storage of your platinum, if you decide to take physical delivery of it. Many investors pay for the storage of the metals that they buy, which is certainly an option for platinum. But if you prefer immediate access to your platinum, you must make arrangements to secure it yourself, either by conventional measures (such as a safe) or carefully hiding it. In any case, also make sure you have insurance to cover its loss; a special rider on an existing policy might be necessary.
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Tips & Warnings
Genuine platinum bullion is hallmarked, just like gold or silver bars.
Platinum bullion coins all have a legal tender value, but their value as metal always far exceeds their face value.
No one but con men or thieves sell platinum for less than spot value, which is widely published in the traditional and online media.
References
Resources
- Photo Credit sign of love exchanging ring band metal platinum image by Paul Retherford from Fotolia.com
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Comments
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This is all fine if you're set on buying physical platinum, but that's probably not a good solution if it's to be part of your investment portfolio. It's much too cumbersome and expensive to hold physical metal directly. Most investors would be better served by buying certificates or platinum ETFs, because it's a much more liquid market, and the value of the investment will rise and fall with the price of platinum just like the physical metal. Platinum ETFs are not just for sophisticated investors, but also for average Joes.
