This is one of the world’s most beautiful metals. It is also one of the rarest. Indeed, it is about 100 times more difficult to find 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 percent of the world’s primary platinum production. Canada produces about 5 percent of the platinum supplies. The United States depends largely on foreign countries to provide its growing need for metal and, since it produces virtually no platinum itself, acquires the rest of the platinum it needs from reclaiming operations.
Fears of supply interruptions have resulted in the U.S. government holding platinum in its Strategic Stockpiles. Since platinum is commonly found in conjunction with nickel, a costly refining process is necessary to recover even menial quantities of the metals 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.
Due to its rarity, platinum has established a foundation as an excellent investment vehicle, too. Although gold and silver are the predominant precious metal holdings, there has been a significant increase in platinum investments over the past few years. During this period the price of platinum has risen exponentially: from $200 an ounce to over $1000 ounce. Rapid growth in the demand for this precious metal combined with limited supplies contributes to platinum’s popularity with investors. So much so that many investors in metals now include platinum in their portfolio. It is no wonder platinum is considered an excellent investment vehicle today. It, too, can act as a hedge against inflation and provide opportunities for long or short-term profit making.
Well known for its use in fine jewelry, platinum has a variety of strategic application that added 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 in the near future. Usage in established markets is increasing and new markets are constantly being developed, factors that promise to keep demand for platinum high and its investment potential excellent.