Is Platinum worth investing in?

In recent years, Platinum has seen an increase in popularity among Precious Metals investors. The scarcity of Platinum makes it rarer than Gold. Approximately 1,500 tons of Gold are mined each year in comparison to just 160 tons of Platinum. However, is rarity a deciding factor on whether the Precious Metal is a good and valuable option for investment?

Although Platinum is widely used in various industries such as jewellery and dental, its greatest demand comes from the automotive sector. Around 40% of Platinum is used to produce catalytic converters in helping to reduce harmful emissions. To find out more on what the other 60% is used for, click here.

Gold and Silver had been used as a form of money for thousands of years before the discovery of Platinum. Although Platinum does not have the same monetary history, the prices of Gold and Platinum are closely correlated, and is even more valuable than Gold based on past historical data. In March 2008, Platinum outshined Gold and peaked at US$2252 per troy ounce while in August, 2020, Platinum has significantly outperformed Gold, rising 55% versus Gold’s rise of 33%. This year, increase in catalytic converters thefts have been reported as Platinum have become more valuable then Gold.

Evonne