Platinum is a silver-white and dense precious metal that is considered the most precious of all Precious Metals due to its rarity. This precious metal, like gold, is used in making jewelry, watches and ornaments. However, this rare metal is most commonly used in industries such as in the manufacturing of catalytic converters in emission units used in vehicles, spark plugs, medical instruments, in dental work (for making crowns) and even in cancer medications.
The price of platinum, like other precious metals, depends on various factors and is constantly changing. Savvy investors will always check the live or spot platinum prices before investing.
The spot price of platinum is more vulnerable to market forces than gold is. Thus, during times of economic growth or stability, when industrial demand is high, the precious metal can be two to three times more valuable than gold. However, during times of economic adversity, the price of platinum can plunge sharply due to reduced industrial demand.
For example, in 2008, platinum lost more than two-thirds of its value in the financial crisis. Till 2015, the live platinum prices continued to stay low thanks to lowered mining supplies as well as lowered recycling rates. Then, in 2016, the price of platinum shot up once again.
While platinum has not traditionally been considered a safe haven commodity the way gold has, that perception is now changing. Today, the role of precious metals like platinum are being reassessed and economists are moving away from the rigid stance of not accepting it as a safe haven investment.
atinum is considered to be a special element because it is much rarer than silver or gold. It has an amazing resistance to corrosion and tarnishes. Platinum is mainly sourced from Merensky Reef, South Africa, which has the largest supply on earth. For all its wonderful properties, platinum investment has only become popular in the past few decades. If you are a precious metals investor and you want to diversify your portfolio, then platinum is the best choice for you. There are various options available if you want to invest in platinum, including coins and bars. There are also platinum coins that have legal tender status. There are also paper forms of platinum investment.
Platinum is sold by the troy ounce. Spot platinum price refers to the price of one troy ounce of platinum at a specific time. It is the price of platinum in the market right now, in real time. The price of platinum today is heavily affected by futures prices. This means that spot platinum price is not the direct result of the current supply and demand of platinum. There are other factors to consider such as geopolitical concerns, the worldwide economy, and the current state of major world currencies. Therefore, traders that specialize in platinum trade in futures contracts.
Spot platinum price is heavily influenced by trading in platinum futures, the South African supply, and the auto industry demand. Since South Africa has about 70% of the world’s platinum, any political or climactic disruptions in the country will significantly affect supply. The automotive industry needs platinum because internal combustion engines heavily use platinum in catalytic converters.
It is important to note that platinum spot price can change rapidly, even by the minute. It is vital that you get accurate and real-time information on platinum prices. Platinum investment can be a lucrative endeavor, especially with expert guidance.