Platinum Prices: Industry Overview
Platinum was only first discovered half way through the 18th century, which means it is still in relative infancy in terms of investment when compared to gold or silver. However, there is still a strong case for this rare and often overlooked precious metal, and it is deemed irreplaceable by medical, energy, chemical, and transport industries.
Even though just less than one ounce of platinum has been mined per every 25 ounces of gold, it exists all around us today. As well as enjoying popularity in the luxury jewellery market, platinum is frequently used in everything from carbon monoxide monitors to catalytic converters. Its appeal in the jewellery industry comes down to three factors: it has the appearance of silver, it doesn’t tarnish over time, and it is much tougher than gold.
While platinum doesn’t have the same rich history as silver or gold to track and analyse, demand for the attractive metal is still healthy, totalling around £6.2bn over the last 5 years.
The London Platinum and Palladium Market (LPPM)
The true benchmark when it comes to the cost of platinum can be obtained via the London Bullion Market Association (LBMA). Prices are set twice daily at 9:45 and 14:00 UK time in US dollars per .9995 fine ounces. These prices are independently administered by the London Metal Exchange (LME),who are a subsidiary of the LBMA.
Platinum coins and bars
Physical platinum is largely available in the form of coins or bars, and both types must be at least .9995 to be considered pure. Platinum coins tend to be valued higher because of higher production costs, their appeal to collectors, and the fact they are minted less than silver or gold coins.
Popular coins include the Platinum Queen’s Beasts Series and the Canadian Platinum Maple Leaf, which have both remained in high demand since they were first launched. Platinum coins are most commonly minted in 1/10oz, 1/4oz, 1/2oz, 1oz and 2oz sizes, and occasionally 10oz and 1kg.
Platinum bullion bars are available as parts of an ounce, multiples of one troy ounce, grams, or kilograms, and again as parts or multiples of these units of weight.
Monitoring platinum price charts
The StoneX Bullion.com Platinum Price Chart can be used to view the historic price of platinum, with the data available to view in
four different timeframes; 1 day, 1 month, 1 year, and back to historic gold price charts
. Prices are available in grams, kilo, or ounces, allowing you to view the price you need in the timeframe of your choice.
What can impact the price of platinum
Much like silver and gold, platinum is very much a supply and demand commodity. However, although the value of platinum can fluctuate in line with various factors that affect the price of silver and gold (economic trends, technology advancements, inflation etc.),it also has its own unique set of influencers:
South Africa is where around 95% of the world’s platinum reserves lie, and is responsible for approximately 75% of the world’s platinum output, with Russia the next biggest producers. In recent years, South Africa has had its own set of problems, including economic downturns and mining strikes, which can impact the price of platinum.
An estimated 50% of platinum goes towards the auto industry, as it is an indispensable element in building catalytic convertors. As the demand for new vehicles is directly affected by the state of the globe’s various economies, the demand for platinum rests heavily on the health of the auto industry.
How to invest in platinum
StoneX Bullion are firm believers that platinum can help diversify an investment portfolio, adding a new dimension to one that’s built entirely upon stocks, shares, and property. However, we appreciate that it is also a big commitment and not suited to all investors. If you’d like to know more about the platinum investment opportunities we can present to you, don’t hesitate to get in touch.