Known as the third most traded precious metal worldwide, platinum is a commonly utilized industrial metal that is used in many different industries and is considered the most-traded metal in the platinum group. Based on supply limitations and rising demand from expansion in industries like hydrogen, a crucial component of the developing green economy, the outlook for platinum over the long run is still favorable. Here is a quick guide to start investing in platinum!
Supply and Demand of Platinum
According to data from the US Geological Survey, South Africa produces the vast majority of the world's platinum, accounting for 72 percent of total production. The largest known resources of platinum group metals are also found in this country. Due to increasing mining at the Bushveld Complex, South Africa produced an expected 130,000 ounces of the metal in 2021, up from 112,000 ounces the year before.
Variations in production from the top nations in the world for manufacturing platinum have become a regular pattern over time. The total supply of platinum in 2022 is anticipated to decrease by five percent compared to 2021, according to the World Platinum Investment Council (WPIC), which publishes quarterly market analyses.
On the other hand, the WPIC predicts that overall platinum demand would increase by two percent in 2022. Since it is used in catalytic converters for automobile exhaust systems, the automotive industry continues to be the world's greatest consumer of platinum.
Another expanding market for platinum has been generated by the shift to a green economy. Hydrogen is separated from water using platinum-based electrolyzers, and this pure hydrogen will then be used in fuel-cell-powered automobiles. Platinum is also utilized in the manufacture of fuel cells.
How to Invest in Platinum
Investors who think the mentioned market dynamics will lead to an increase in the price of platinum may be keen to invest in the metal. There are a couple of ways to invest in platinum, the first of which is to buy actual platinum bars or coins from a bullion dealer directly. Another investment option would be through an online physical platinum market such as BullionVault, which is backed by the WPIC and provides private individuals with access to vaulted platinum at similar prices as that institutional investors are now paying.
Another method of investing in the platinum market is through exchange-traded funds. Owning stock in a platinum mining business is, of course, the last option for investing in platinum. The likelihood that a thriving mining firm won't be adversely impacted by drops in the spot price of platinum is one advantage of investing in one.
Choose AGR Gold
AGR Gold takes great pride in its reputation for dependability, friendliness, and knowledge of precious metals. You may rest assured that every one of our services and goods satisfies the highest requirements. We offer storage and appraisal services in addition to purchasing, selling, and storing precious metals. You can count on us to offer the best services if you want to purchase platinum or other precious metals. For more information, contact us today!