Platinum as an investment

Platinum has a much shorter history in the financial sector than either gold or silver, which were known to ancient civilizations.

Platinum is relatively scarce even among the precious metals. New mine production totals approximately only 5 million troy ounces a year. In contrast, gold mine production runs approximately 82 million ounces a year, and silver production is approximately 547 million ounces. [ [http://www.nymex.com/pla_fut_descri.aspx NYMEX Platinum futures description] ] As such, it tends to trade at higher per-unit prices.

Platinum is traded on the New York Mercantile Exchange (NYMEX) and the London Platinum and Palladium Market. To be saleable on most commodity markets, platinum ingots must be assayed and hallmarked in a manner similar to the way gold and silver are. [ [http://www.lppm.org.uk/pgm_good_delivery_cover.html London/Zurich Good Delivery List] ] [ [http://www.nymex.com/pla_fut_brands.aspx Brands of platinum on NYMEX] ] .

The price of platinum changes along with its supply and demand. During periods of sustained economic stability and growth, the price of platinum tends to be as much as twice as the price of gold, whereas, during periods of economic uncertaintycite web | title = Platinum versus Gold | publisher=The Speculative Invertor | url = http://www.speculative-investor.com/new/article150402.html] , the price of platinum tends to decrease due to reduced demand, falling below the price of gold, partly due to increased gold prices. Platinum price peaked near US$2,300 per troy ounce in March 2008 driven on production concerns (brought about partly due to power delivery problems to South African mines). It subsequently fell to US$932 per oz t in October 2008 [ [http://bullion.nwtmint.com/pricing.php Spot prices of platinum] ] .

Exchange-traded funds

Platinum is traded on the London Stock Exchange as an exchange-traded fund under the ticker symbol lse2|PHPT.

Platinum coin

Platinum coins are another way to invest in platinum, although relatively few varieties of platinum coins have been minted, due to its cost and difficulty in working.

ee also

*Gold as an investment
*Silver as an investment
*Palladium as an investment

References

External links

* [http://www.nymex.com/pla_pre_agree.aspx Information about Platinum as a commodity from New York Mercantile Exchange]
* [http://www.lppm.org.uk/ London Platinum and Palladium Market]