What is Platinum Investment? Comparing Platinum Coins, Bars, and Rounds

Investing in gold and silver has long been popular as a way to preserve wealth and hedge against inflation, but for investors looking to build a more diversified portfolio, platinum offers a hidden gem that is less well-known.

Platinum is one of the rarest precious metals in the world and has great potential as an investment. This article will explain in detail the characteristics and advantages of platinum coins, bars, and rounds, the best time to invest, and what to look out for when purchasing.

Platinum's rarity and value

Platinum is an ultra-rare metal, with only about one-twentieth the amount of gold found on Earth. Most of the platinum currently in circulation is mined in South Africa. It is in particularly high demand as a core material in environmental technologies such as automotive exhaust gas purification devices (catalytic converters) and hydrogen fuel cells.

Platinum is also highly corrosion-resistant and retains its luster for a long time, making it used in a wide range of applications, including jewelry and medical equipment. Demand for these metals is stable, and this is a fundamental factor supporting the price.

Relationship between Platinum Price and Gold: Focus on the Platinum/Gold Ratio

It was once common knowledge that platinum traded at a higher price than gold. However, in recent years, there have been many instances where the price has reversed. Many investors believe this is a temporary market distortion, and strategic investments that utilize the "platinum to gold price ratio (platinum/gold ratio)" are gaining attention.

When platinum is significantly cheaper than gold, it is likely that its price will recover in the medium to long term, making it an ideal entry point. One of the great attractions of platinum is that you can take advantage of this price difference to diversify your assets at a different time than other precious metals.

Features and benefits of platinum coins

Among platinum investments, bullion coins are particularly popular. The reason is simple: they are government-issued, highly reliable, and have excellent liquidity.

Many platinum coins are minted with a purity of over 99.95% and are issued with a national guarantee, making them a reliable asset that can be used around the world. Examples include:

• American Platinum Eagle (United States Mint)

• Canadian Platinum Maple Leaf (issued by the Royal Canadian Mint)

These coins are generally issued in 1 ounce (approximately 31.1g) coins, making them an affordable unit for individual investors. Furthermore, their design and limited issuance make them highly collectible and easy to resell.

Characteristics of platinum bars (ingots)

Platinum bars (bullion bars) are a convenient way to purchase larger quantities of platinum. They come in a variety of sizes, from 1 ounce to 1 kg. In terms of cost, they generally command a lower premium than coins of the same weight.

Many bars are produced by refineries certified by PAMP Switzerland, Valcambi and the London Bullion Market Association (LBMA), ensuring authenticity and purity.

However, platinum bars often come with an identification number, which can make the process of reselling them somewhat complicated. It's also important to consider that the larger the bar, the more difficult it is to sell it separately.