Platinum considerably, the rarest metal of all, is no doubt costly. One of the earliest records of this metal was in 1557, and it was called Platina.
This metal has numerous commercial applications across industries. For instance, the automobile industry is a large consumer of platinum. This precious metal can withstand high temperatures and pressure, making it an asset in many manufacturing sectors.
Apart from the automobile industry, it is in high demand in the medical equipment industry. Further, it is known for its usage and high regard in the jewelry industry.
Given its valuable properties and rarity, no wonder platinum price today seems to be on the rise all the time. This article will shine light upon everything you need to know about the platinum price and more. So, to learn more about the price and the factors that affect it, keep reading.
Why Is Platinum a Good Investment?
Before moving on to platinum pricing, it’s time to look at how good an investment this metal is. Platinum coins and bars have always been very popular among metal investors for the longest time. Nonetheless, this is only among a small portion of most investors.
This metal makes only less than 10% of all the annual demand for precious metals. Besides, a massive part of this demand comes from the automobile industry. While the automotive sector makes up 40% of the demand, the jewelry industry makes up 30%. Nevertheless, collectors and investors are aware of the investment opportunities of this metal very well.
Platinum is rarer than gold as it appears deeper in the Earth’s core. Further, it is more complicated and labor-intensive to mine.
According to the World Platinum Investment Council, this metal is undervalued. This is why you may see palladium and gold priced at a higher price. Nonetheless, it is a good investment since the demand for the metal is growing rapidly.
Platinum Price Today: Spot Price of Platinum
Platinum is priced by the troy ounce. This method has been the standard weight for precious metals like platinum and silver in the USA since the 1800s. It has also been the same for much longer in other parts of the world.
Many factors influence the spot price of platinum. It includes the state of the economy, the value of various currencies, political events, and various macroeconomic determinants.
Dealers use the spot prices as a reference to calculate the price they charge for their physical platinum bars, rounds, or bullion coins.
The first quarter of 2021 saw positive growth in the trend. Further, the recovery of the mines improved supply that kept up with the demand. With the knowledge of the spot price, you can decide on investing at the right time at the right place.
What Affects Platinum Prices?
The fluctuations of platinum prices today are no different from other precious metals. It is dependent on overall demand, among other factors. Here are some important factors that can change the platinum prize:
- Value of currencies such as USD
- Macroeconomic issues
- Availability of labor and resources such as electricity in the mines
- Geopolitical issues
- Civil disputes
- Demand in the automobile and medical industry
- Availability and price of alternative metals like palladium
Historical Increases in Platinum Prices
Platinum price varies along with the supply and demand. The price of platinum increases during periods of sustained economic growth and stability. During these times, the cost can go up to twice as much as the price of gold.
On the other hand, the platinum price tends to fall when the cost of gold increases. This can be seen during times of economic uncertainty.
Now, below are some historical increases in platinum prices:
- 119% increase during October 2006 to March 2008
- 133% increase during October 2008 to April 2010
- 32% increase during May 2010 to August 2011
- 29% increase during December 2010 to February 2012
- 26% increase during December July 2012 to February 2013
- 20% increase during June 2013 to August 2013
- 16% increase during December 2013 to July 2014
- 47% increase during January 2016 to August 2016
- 21% increase during August 2018 to April 2019
Interesting Facts About Platinum
This metal was known as white gold. It is highly resistant to corrosion and tarnishing. Besides this, there are many interesting facts about platinum. Below are some of them:
- Nearly 80 percent of platinum is mined in South Africa. The rest are mined in Russia, North and South America.
- About half of the mined platinum goes to manufacturing catalytic converters. It is an automobile part that reduces the toxic gas emissions from the engine.
- Platinum can withstand high temperatures better than most other metals.
- This metal is used in cancer therapy as well. Nearly 50% of cancer drugs contain platinum. It is used in medicine because platinum is biologically compatible and does not react negatively with body tissues.
- A cylindrical platinum alloy is used to measure the international standard of a kilogram.
- London is the center for platinum trading. However, physical delivery is more common in Zurich.
- It is more difficult to isolate platinum when compared to gold or silver. Manufacturers employ a complex aqueous chemical processing to identify and isolate this metal.
- It can take over six months to produce one troy ounce of pure platinum. Besides, it will take about 7 to 12 tons of ore to produce this.
- The manufacturing of platinum into fine jewelry started in the 1900s.
Although the price saw a downtrend in recent years, this trend has finally ended. Currently, platinum price is on the rise. So, investing in this noble metal can be an excellent choice if you want to grow your wealth.
The price can fluctuate based on several factors such as geopolitical issues, demand in the automotive industry, and macroeconomics. Nonetheless, this metal holds great value as a highly-priced ornament or investment choice.
No matter which forms, purchasing it can bring you good fortune. So, check out the platinum price today and go ahead with your investment plans.