Money Control Place
  • Politics
  • Business
  • Stocks
  • Investing
  • Politics
  • Business
  • Stocks
  • Investing

Money Control Place

Investing

How to Invest in Platinum (Updated 2023)

by June 16, 2023
June 16, 2023
How to Invest in Platinum (Updated 2023)

Platinum is the third most traded precious metal in the world and the most commonly traded platinum-group metal. It is widely used in a variety of sectors, in part because it is also an industrial metal.

The past few years have brought record highs and record lows for platinum prices. In 2020, the COVID-19 pandemic prompted both a surge in investment demand and a loss of industrial demand from the automotive sector. The rally petered out in 2021, but platinum prices spiked to over US$1,150 per ounce in early 2022 due to Russia’s war in Ukraine before once again pulling back.

Experts believe the platinum market is facing a supply deficit in 2023 on the back of rising investment demand and short supply, which together propelled prices for the metal past the US$1,100 mark in the spring.

The long-term outlook for platinum is strong as well, making the sector potentially compelling for investors. Here’s a brief overview of platinum supply and demand dynamics, as well as a look at a few different ways to start investing in platinum.

What factors impact platinum supply and demand?

South Africa is by far the world’s top platinum-producing country, according to US Geological Survey data, accounting for about 74 percent of global production. The country also holds the largest-known reserves of platinum-group metals. In 2022, South Africa produced an estimated 140,000 kilograms of the precious metal, down from 142,000 kilograms the previous year.

Production fluctuations from the world’s top platinum-producing countries have been a common trend over the years. According to the World Platinum Investment Council (WPIC), which provides quarterly market overviews, the platinum market is expected to be in a deficit of 983,000 ounces in 2023 as demand grows by 28 percent and supply decreases by 1 percent from the previous year.

“Q1’23 saw a surge in investor interest, driven by heightened global uncertainty, platinum’s strong demand growth and concerns about risks to mine supply,” notes the WPIC in a report. “Again, this trend is expected to continue in 2023. The result will mean net investment demand of 433 koz in 2023 — a swing of 1,073 koz on 2022.”

The automotive industry is the world’s largest consumer of platinum, using the metal in catalytic converters for vehicle exhaust systems. Demand from this sector is “expected to rise by 12 (percent) in 2023 to 3,255 koz driven by a number of factors,” as per the WPIC. In addition, the firm forecasts that industrial demand will hit another record year, with projected growth of by 17 percent year-over-year to 2,628,000 ounces.

The transition to a green economy has created another growing market for platinum. Platinum-based electrolyzers are used to separate hydrogen from water, and that pure hydrogen can then be used in vehicles powered by fuel cells. Platinum is also used to fabricate fuel cells themselves.

More recently, the WPIC noted that platinum demand from proton exchange membrane electrolyzers and fuel-cell electric vehicles is expected to become ‘a meaningful component of global demand by 2030 and potentially the largest segment by 2040.’

How to invest in platinum?

Investors who believe the above market dynamics will eventually result in a higher platinum price may be interested in investing in the metal. There are several ways to invest in platinum, with the first being through the direct purchase of physical platinum bars or platinum coins through a bullion dealer.

Another investment option is BullionVault’s online physical platinum market, which is open 24 hours a day, seven days a week. It is supported by the WPIC, and gives private individuals access to vaulted platinum for the same prices currently paid by institutional investors.

The final way to invest in platinum is, of course, to own shares of a platinum-mining company. Some of the top platinum companies by market cap include Anglo American Platinum (LSE:AAL,OTCQX:AAUKF), Impala Platinum Holdings (OTC Pink:IMPUY,JSE:IMP) and Tharisa (LSE:THS). One benefit of investing in an established mining company is that they have a higher chance of not being negatively affected by platinum price downturns.

Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
0
FacebookTwitterGoogle +Pinterest
previous post
Have We Reached Peak Oil? (Updated 2023)
next post
Rhode Island Senate approves $14 billion budget proposal for 2024 fiscal year

Related Posts

NorthStar Completes $10.3 Million Financing

November 2, 2023

Edison Lithium

March 27, 2024

Iran Earmarks US$38 Million for Mining Infrastructure Development

May 22, 2024

Forward Water Technologies

October 28, 2023

5 US Longevity and Anti-aging Stocks to Watch...

January 24, 2025

Awalé Announces New Gold Discovery on the Odienné...

January 12, 2024

More Outstanding Gold Mineralisation Intersected at Auld Creek

May 7, 2024

Cosa Resources Announces Summer Exploration Plans for Athabasca...

May 10, 2024

SEC Charges Binance and Coinbase in Attempt to...

June 12, 2023

Energy Fuels Enters into MOU to Secure Near-Term,...

December 29, 2023

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest

    • Larry Williams on the Fed, Interest Rates & Markets! What’s Next?

    • Top Sectors to Watch + The 18 SMA Setup Every Trader Should Know

    • Platinum Price Breaks Out as Chinese Demand and Global Shortfalls Ignite Rally

    • Freegold Provides Update on 2025 Drill Program

    • Coelacanth Announces Q1 2025 Financial and Operating Results

    • Silver Stocks and the Land Grab for Silver Assets

    Categories

    • Business (1,218)
    • Investing (2,493)
    • Politics (3,699)
    • Stocks (1,608)
    • Uncategorized (20)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: MoneyControlPlace.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 moneycontrolplace.com | All Rights Reserved