Investing in Platinum

Platinum is a rare metal, with only 133 tonnes mined annually compared to about 1782 tonnes of gold. The majority of platinum comes from mines in South Africa, but is also found in areas such as Russia, Canada, Australia, USA and Zimbabwe, and has a large industry market worldwide. However, the interest on investing in platinum is about one-seventh the size of gold investments, suggesting it is still an untapped venture for buyers.

Platinum in Technology

It is estimated that onefifth of everything we use either contains platinum or requires platinum in its manufacture. Platinum is a metal heavily dominated in the jewellery industry, but because of ecofriendly attitudes and adjustments in society, platinum has proven to be an important player. It performs as autocatalysts, or catalytic converter which essentially transforms toxic emissions from engines into less harmful gases; a necessity for cars in the 21st century. Demand in the automotive industry for platinum is 46%, and as all eyes are on Japan, India and China where automotive production is due to ramp up and the prices of platinum will increase alongside these growing demands. Together, these two applications – jewellery and catalytic converters, consume more than 70% of the world's supply of platinum.

Platinum’s scarcity and growing demand make it an incredible opportunity for growth and value. Thinking about longterm investments, the unique characteristics of platinum makes this metal much more important in industry than other precious metals, and platinum is much rarer. As antipollution regulations are steadily becoming priority for governments, platinum is a big beneficiary for this trend.