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How to invest in platinum

The precious metals quoted on the financial markets are excellent assets for individual investors as they offer numerous advantages and enable a good diversity of investments.

But apart from gold and silver there is another precious metal that is highly sought after by traders due to its volatility and high liquidity, as well as its rarity; platinum. Little known by the general public this precious metal generates millions in profits every year throughout the world.

To understand how it is possible to make money by speculating on the price of platinum here is some basic information and explanations about platinum trading together with its indicators and historical details on the trading markets.


General presentation of platinum:

Although little known, platinum is however a highly sought after precious metal. It is even rarer than gold with only a little more than 6 million ounces produced per year. Platinum is quoted in American Dollars per ounce with an ounce representing just above 31 grams of platinum. However, you can find the price quoted in Euros per ounce on certain charts.

The countries that produce the most platinum are mainly South Africa and Russia although the amount extracted in the mines amounts to 12 times less than that of gold.

As with other metals, zinc for example, platinum is mainly used by the Automobile industry that purchases nearly 60% of the global production. It is used in the composition of catalytic convertors. Another smaller part of this amount produced (20%) is used in the jewellery sector.

Platinum is a highly priced metal considered as one of the precious metals due to its rarity.


The Platinum quotation:

Platinum is quoted on the stock exchange in the London Market that is also responsible for the quoting of Paladium. This is the LPPM (London Platinum and Palladium Market). The quote is only updated twice per day.


The indicators to follow for platinum trading:

To speculate profitably in the financial markets or trade in platinum you should know the indicators you need to follow. Here are the major ones to monitor:

  • The export policies of the two major producing countries
  • The economic situation of the importing countries
  • The performance of the automobile industry
  • The value of the American Dollar against other currencies