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Five reasons to invest in Platinum?

Published by Karl Martin Karus in category Articles on 09.03.2023
Gold price (XAU-SEK)
26055,50 SEK/oz
  
+ 73,40 SEK
Silver price (XAG-SEK)
310,61 SEK/oz
  
+ 1,38 SEK

Five reasons to invest in Platinum?

Potential for capital appreciation

Like other commodities, platinum prices can be volatile in the short term. However, over the long term, Platinum has the potential to appreciate in value as global demand continues to grow and supply constraints become more pronounced. This can provide investors with a potentially lucrative investment opportunity.

Diversification

Investing in physical Platinum can diversify your investment portfolio by providing an alternative asset class to traditional investments like stocks and bonds. This can help reduce your overall risk exposure, as different asset classes perform differently in various market conditions.

Industrial demand

Platinum has a variety of industrial applications, particularly in the automotive and jewelry industries. This means that demand for Platinum is closely tied to the health of the global economy and industrial production, which can make it a valuable hedge against inflation and economic uncertainty.

Limited supply

Unlike other precious metals like gold and silver, Platinum has a relatively limited global supply. This can create scarcity and increase the metal’s value over time, particularly as demand from emerging markets grows.

Tangible asset

Physical platinum products like bars and coins are tangible assets you can hold in your hand, making them a popular choice for investors who prefer to own and store their investments directly.

What are the main sectors of Platinum that might be used in the future?

Automotive industry

Platinum is widely used in automobile catalytic converters, which convert harmful exhaust gases into less harmful emissions. As electric vehicles become more popular, demand for Platinum in this sector may decrease. However, it is still expected to remain an essential material for internal combustion engines and other applications in the automotive industry.

Hydrogen fuel cells

Platinum is a crucial component in hydrogen fuel cells, which produce electricity by combining hydrogen and oxygen. As the world looks to reduce carbon emissions, hydrogen fuel cells are expected to become an increasingly important source of clean energy, and demand for Platinum in this sector is expected to grow.

Jewelry industry

Platinum is a popular material for high-end jewelry due to its durability, luster, and resistance to tarnishing. Demand for Platinum in the jewelry industry is expected to remain strong, particularly in emerging markets where rising incomes drive demand for luxury goods.

Industrial applications

Platinum is used in various industrial applications, including producing chemicals, glass, and electronics. As industrial production continues to grow globally, demand for Platinum in these sectors is expected to increase.

Medical industry

Platinum is used in some medical devices and equipment due to its biocompatibility and resistance to corrosion. As the global population ages and demand for medical care increases, demand for Platinum in the medical industry is also expected to grow.

Gold price (XAU-SEK)
26055,50 SEK/oz
  
+ 73,40 SEK
Silver price (XAG-SEK)
310,61 SEK/oz
  
+ 1,38 SEK

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