Platinum
Platinum, one of the world’s most beautiful metals is also one of the rarest –
about 100 times more rare than gold. Because platinum is both a vital industrial
metal and one with limited sources of supply, it is considered a strategic
metal. The former Soviet Union and South Africa account for about 90% of the
world’s primary platinum production. Canada produces about 5% of the platinum
supplies, and the bulk of domestic platinum supplies are obtained from
reclaiming operations or import. Fears of supply interruptions have resulted in
the U.S. Government holding platinum in its Strategic Stockpiles. The United
States depends largely on foreign platinum supply. Since platinum is commonly
found in conjunction with nickel, a costly refining process is necessary to
recover even menial quantities of the metal from tons of ore. This is a primary
reason for platinum’s exceptionally high value. Combined with its rarity, the
demand for platinum in the marketplace exceeds its free world supply, making it
an extremely attractive investment opportunity.
Something of Value
now and in the Future
In spite of its rarity, platinum has established a pattern as an excellent
investment vehicle. Although gold and silver are the predominant precious metal
holdings, there has been a significant increase in platinum investments over the
past several years. During this period the price of platinum has risen to a high
of over $1100 from its low of less than $200. Rapid growth in demand and limited
supplies have contributed to platinum’s popularity with investors. Many
investors in metals now include platinum in their portfolio. No wonder platinum
is considered an excellent investment medium; it can act as a hedge against
inflation as well as provide long or short term profit.
Prized for Many
Reasons
Well known for its use in fine jewelry, platinum has a variety of strategic
applications that add to its universal demand. Important for its catalytic
properties, and resistance to corrosion, platinum plays a role in the
manufacturing of gasoline, fiberglass and catalytic converters. It is also
widely used in the electrical, chemical and medical industries. Growth in
platinum consumption worldwide is expected to increase tremendously. Usage in
established markets is increasing and new markets are constantly being
developed; factors that promise to keep demand for platinum high and investment
potential good.