Platinum Investments

Platinum has a much shorter history in the financial sector than either gold or silver, which to ancient civilizations. Platinum is relatively scarce even among the precious metals. New mine production totals approximately only 5 million troy ounces a year. In contrast, gold mine production runs approximately 82 million ounces a year and silver production is approximately 547 million ounces. As such, it tends to trade at higher per-unit prices. Platinum trades on the New York Mercantile Exchange and the London Platinum and Palladium Market. To be saleable on most commodity markets, platinum ingots assayed and hallmarked in a manner similar to the way gold and silver are. Platinum price changes along with the platinum supply and demand. During periods of sustained economic stability and growth, the price of platinum tends to be as much as twice the price of gold, whereas, during periods of economic uncertainty, the price of platinum tends to decrease because of reduced demand, falling below the price of gold, partly due to increased gold prices. Platinum coins are another way to invest in platinum, although relatively few varieties of platinum coins minted, due to its cost and difficulty in working. Since 1997, the United States Mint has sold American Platinum Eagle coins to bullion investors. Most Swiss banks offer platinum accounts where platinum bought or sold just like any foreign currency. Unlike physical platinum, the customer does not own the actual metal but rather has a claim against the bank for a certain quantity of metal.