Investing in platinum coins can diversify an investment portfolio. Platinum coins offer unique advantages and characteristics that make them a popular alternative to other precious metals. Platinum is significantly rarer than both gold and silver. A significant portion of platinum demand comes from industrial applications, particularly in the automotive industry for catalytic converters. Because its price movements can be different from gold and silver, it offers a way to spread risk.
Platinum mining is geographically concentrated, with the vast majority, close to 97% of all platinum coming from South Africa and Russia. This concentration can lead to supply disruptions and volatility in prices, which can drive value independently of the investment market.
Platinum has significant industrial demand, particularly in automotive catalytic converters, jewelry, and various high-tech applications. As the world moves towards more sustainable technologies, platinum demand remains high for the role it plays in various green technologies, like hydrogen fuel cells and renewable energy.
Each year, a variety of sovereign mints issue investment-grade pure platinum coins. Platinum coins issued by government mints contain a purity of 99.95%, and their quality and weight are guaranteed, providing a high level of trust and security for investors. Platinum coins from reputable government mints offer a combination of quality assurance, legal tender status, intrinsic metal value, and collectibility.
In some cases, various denominations are available. These are legal tender platinum coins that are issued as a store of value. Like other metals, platinum is considered a hedge against inflation and currency devaluation and retains value and often appreciates during times of economic uncertainty.
The United States Mint has produced a American Eagle 1 oz Platinum is issued annually. These coins are often sought after by collectors for their rarity as part of the history of American coinage, which can also play a factor as an investment, with the potential for numismatic returns.
The Royal Mint issues the Platinum Britannia coin featuring the iconic Britannia design on the reverse and the monarch on the obverse. The secondary market is a great way to get deals on random year Britannia 1/10 oz platinum coins
The Perth Mint in Australia produces the Platinum 1 oz Kangaroo. The coin features a bounding kangaroo design that is used on other bullion issues, and an effigy of Queen Elizabeth II on the obverse. Additionally, versions of the highly popular Kookaburra and Koala series are also available in platinum metal.
The Isle of Man has issued the Noble platinum coin in various denominations, including 1/10 oz. The design often features a Viking longship, symbolizing the island's rich Norse heritage.
The Austrian Mint produces a platinum Philharmonic coin, which is available both 1 oz and 1/10 oz sizes. It features the same design as the gold and silver versions, celebrating the Vienna Philharmonic Orchestra.
Tangible assets, like platinum coins, hold intrinsic value based on the market price and have the potential for long-term appreciation in value. In times of economic uncertainty or market crashes, tangible assets can offer more stability compared to stocks or bonds. The cheapest platinum coin can typically be found amongst the secondary market.