Platinum is used to make jewellery, particularly rings. But this dense and durable grey-coloured metal is also found in catalytic converters on vehicles, and traces of it can even be found in some dental fillings and mobile phones.
Platinum is much rarer and harder to mine than gold and silver, which makes it a more expensive commodity to buy. Here are 3 different ways you can invest in platinum.
This can come in the form of coins (usually available to purchase from official government mints) or bars.
A platinum bullion bar can weigh from one ounce up to one kilogram or more, and is usually accompanied by a form of assay card or a certificate of authenticity, which contains various details on its purity and origin.
Platinum bullion is of a finer purity than the platinum found in jewellery and should be at least 99.95% pure (also referred to in the industry as 999.5 or .9995 pure).
Remember to check that you are buying bullion from a reputable dealer, and also factor in that you will probably want to pay for the cost of secure storage.
For investors looking to the stock market to make returns from platinum, then ETFs (or exchange traded funds) are an option to consider.
These are funds that invest in a basket of different things – such as equities, bonds and commodities – and you can find more detailed information on them in Finder’s ETF guide.
ETFs are a popular choice among both novice and experienced investors, because they can help diversify portfolios and reduce risk by collectively investing in a range of assets. And they also have the ability to hone in on specific industries or commodities, if that is what you’re looking for.
There are various platinum-focused funds to choose from on the world’s stock markets, which will invest in things like platinum bullion, platinum futures contracts or platinum mining companies.
Major platinum ETFs include:
But if you’d like a more limited exposure to platinum then there are also funds that include platinum as part of their wider investment portfolios, or ETFs that track the precious metals sector as a whole.
If you’re more interested in buying specific shares in platinum-related companies, then purchasing stocks in platinum mining companies could be for you.
As platinum is scarcer and more difficult to extract than gold or silver, there are fewer mining companies in this part of the precious metals sector, but some of the world’s largest platinum mining firms include:
If you want to start investing either in EFTs or company shares, you can do so through a broker or by signing up to a share trading platform. Weigh up your options by reading our investment guides, and compare share trading platforms using the table below.
The graph below shows more recent data on the value of platinum (prices are in US dollars).
In March 2008, the price of platinum peaked at around USD$2,252 but fell to USD$774 by November. In the last 5-year period, platinum peaked at a price of USD$1,293 per ounce in February 2021, which was up from USD$622 in March 2020.
To make comparing even easier we came up with the Finder Score. Trading costs, account fees and features across 10+ stock trading platforms and apps are all weighted and scaled to produce a score out of 10. The higher the score the better the platform - simple.
Want to dive into investing but don’t have much to spend? Take a look at these types of stocks.
Read more…
Meme stocks can produce large gains in short periods, but the stocks are volatile.
Read more…
Your guide to how ETFs work and whether this type of investment is right for you.
Read more…
Learning how to read stock charts and recognize chart patterns can unlock your success as a trader.
Read more…
Owning a stock means you own part of a company and can potentially grow your wealth. But there is a risk of loss.
Read more…
Learn how to research stocks and find the right investment opportunities in 4 steps.
Read more…
These are the best renewable energy stocks to buy now in Canada.
Finder’s unique algorithm found the 20 best TSX stocks to buy right now.
Looing for the best performing ETF in Canada? Explore the best Canadian ETFs on the TSX for dividend, REIT, bond investing and more.
Whether you’re a new or experienced investor, these are the best stock trading platforms and apps in Canada.
Find out how to buy international stocks in Canada in three easy steps.
Wealthsimple offers zero-fee trades and a super user-friendly mobile app. But there are some drawbacks.
Find out how to invest in the S&P 500 in Canada—one of the world’s most popular stock indices—to diversify your portfolio.
What is options trading, and are options better than stocks? We break down how to trade options in Canada.
Questrade is a leader among Canadian discount brokerages, but is it right for you? Compare fees, features and alternatives here.
Want to know how to buy and sell stocks in Canada? Find out what you need to know in this simple, step-by-step guide.