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Reasons to Buy Platinum

Posted by Platinum Coins on September 28th, 2008

Whether it's platinum or gold or silver, one thing's for sure – precious metals preserve wealth over time. In these uncertain economic times, it's reasonable for every individual to protect at least a portion of their wealth in precious metals, coins, and bullion.

While the debate may never end over which is the “best” precious metal to invest in, platinum certainly has some very attractive factors rooting for it.

First, platinum is a more compact form of wealth than even gold. As I write this, gold is trading around $850 per ounce while platinum is around $930. This means that you're preserving more wealth in the same amount of space. If you have a considerate amount of paper greenbacks that you want to convert into a more sound investment such as precious metals, there is no better bang for the buck than platinum coins and bullion. Platinum also makes it convenient to create several “stashes” of precious metals, each with enough value that you can weather any financial storms that may arise.

And since I mentioned the current price of platinum, it's also worth noting there is large upward potential in that price. Platinum prices are currently near their lowest levels in over a year. The price also skyrocketed to over $2,200 last year and is widely expected to revisit that level in the near future. This means that platinum is currently trading for almost 58% less than it was in March of last year. If platinum prices revisit the old highs, as most economists expect they will, the $930 per ounce price would increase 136%. There is a large potential for excellent returns here.

There are also rumors (and some facts) that the Commodities Exchange (Comex) is being depleted of precious metals as investors rush to take advantage of low prices. This rush is enhanced due to prices for physical gold, silver, and platinum commanding substantial premiums over futures contracts on the Comex. If the Comex stockpiles become depleted, there will be an enormous rush into physical precious metals, causing prices to immediately rise (some have even said prices could “double overnight”).

And finally, platinum coins and bullion have the “coolness factor”. Lots of people own gold and silver but relatively few own any platinum. The platinum market remains largely untapped so it's possible to get in on the “ground floor” of the platinum rush.

Whatever your reasons for buying platinum, we can all agree it is a unique and valuable precious metal that is sure to be a sound investment for now and in the future.

Happy Investing!