Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.

How to invest in platinum

Investing in platinum might not be your first thought when you think of this precious metal but it can be a popular choice.

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.

Buying platinum bullion

Most people think of gold when it comes to shiny chunks of bullion, but you can also buy platinum bullion.

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.

Pros

  • You have a physical asset that you can hold, store or sell on.
  • Coins and bullion are relatively easy to purchase.

Cons

  • You may need to pay for secure delivery and/or storage.
  • You should check the authenticity of the seller and the bullion itself.

Investing in platinum ETFs

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:

  • Aberdeen Standard Platinum Shares EFT (NYSEArca: PPLT)
  • GraniteShares Platinum Trust (NYSEArca: PLTM)
  • iPath Series B Bloomberg Platinum Subindex Total Return ETN (NYSEArca: PGM)

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.

Pros

  • ETFs can give you access to a range of platinum-related investments.
  • A good option if you don’t want to single out one company to invest in.

Cons

  • You don’t get to choose the individual investments yourself, this is done by the fund managers.
  • There will be a fund management fee to pay.

Buying shares in platinum mining companies

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:

  • Anglo American Platinum Limited (OTC Markets: ANGPY)
  • Impala Platinum Holdings Limited (OTC Markets: IMPUY)
  • Tharisa plc (LSE: THS)
  • Sibanye Stillwater Limited (NYSE: SBSW)
  • Platinum Group Metals Ltd. (TSX: PTM)
  • Generation Mining Limited (TSX: GENM)
  • Eastern Platinum Limited (TSX: ELR)
  • Mene Inc. (TSXV: MENE)
The financial performance of any mining company can depend on a number of factors, such as demand for the metal being mined; a fluctuation in global prices for the raw material; availability of the raw material, for example, if certain mining seams begin to run out; environmental issues surrounding the mining process; local issues affecting the mining extraction, for example, civil unrest or a striking workforce; and wider economic global issues, such as a recession.

Pros

  • Choosing the right stocks can generate promising returns.

Cons

  • The value of your shares could go down as well as up.

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.

Platinum performance

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.

Compare these providers to invest in platinum

1 - 6 of 6
Name Product Finder Rating Stock Trading Fee Account Fee Available Asset Types Offer
OFFER
CIBC Investor's Edge
Finder Rating:
★★★★★
4 / 5
$4.95–$6.95
$0 if conditions met, otherwise $100 a year
Stocks, Bonds, Options, Mutual Funds, ETFs
Young investors 18 to 24 can get free online trades and a $0 annual account fee. Conditions apply.
Interactive Brokers
Finder Rating:
★★★★★
4.1 / 5
Min. $1.00, Max. 0.5%
$0
Stocks, Bonds, Options, ETFs, Currencies, Futures
Scotia iTRADE
Finder Rating:
★★★★★
3.8 / 5
$4.99–$9.99
$0
Bonds, Options, Mutual Funds, ETFs, GICs, International Equities
FREE TRADES
Wealthsimple
Finder Rating:
★★★★★
3.9 / 5
$0
$0
Stocks, ETFs
Get $25 when you open a Wealthsimple account and fund at least $150.
Questrade
Finder Rating:
★★★★★
4.2 / 5
$4.95 - $9.95
$0
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs, International Equities, Precious Metals
Get $50 in free trades when you fund your account with a minimum of $1,000.
OFFER
Qtrade Direct Investing
Finder Rating:
★★★★★
4.1 / 5
$6.95 - $8.75
$0 if conditions met, otherwise $25/quarter
Stocks, Bonds, Options, Mutual Funds, ETFs, GICs
Get almost $500 in commission free trades when you fund your new account with a minimum of $10,000. Conditions apply. Ends August 31, 2022.
loading

Compare up to 4 providers

Frequently asked questions

Disclaimer: This information should not be interpreted as an endorsement of futures, stocks, ETFs, CFDs, options or any specific provider, service or offering. It should not be relied upon as investment advice or construed as providing recommendations of any kind. Futures, stocks, ETFs and options trading involves substantial risk of loss and therefore are not appropriate for all investors. Trading CFDs and forex on leverage comes with a higher risk of losing money rapidly. Past performance is not an indication of future results. Consider your own circumstances, and obtain your own advice, before making any trades.

More on investing

Find the best investment newsletters in Canada

Find the best investment newsletters in Canada

Here are the best Canadian investment newsletters to help you boost your investment knowledge and grow your wealth.

Read more…
Sectors and stocks that might protect you from rising interest rates

Sectors and stocks that might protect you from rising interest rates

Here are some investment ideas that could do well despite rising interest rates.

Read more…
Online gaming stocks

Online gaming stocks

iGaming is now legal in Ontario. Find out which companies to keep an eye on with our list of 10 top online gaming stocks.

Read more…
Best brokerage signup bonuses in 2022

Best brokerage signup bonuses in 2022

Enjoy perks like free trades and cash rewards when you open a stock trading account with these online brokers.

Read more…
Popular propane stocks to buy in Canada

Popular propane stocks to buy in Canada

Here’s what you need to know about investing in the propane industry, including 3 popular propane stocks to watch.

Read more…
Best blue chip stocks in Canada and the US

Best blue chip stocks in Canada and the US

Using our proprietary algorithm, we’ve found the best blue chip stocks on the TSX, NYSE and Nasdaq based on price, performance and more.

Read more…

More guides on Finder

  • Compare AISH payday loans

    Some payday lenders accept AISH as a valid source of income. Find out where you can get approved for AISH payday loans.

  • HSBC InvestDirect Review

    Choose from many account and investment types to invest in global markets, but expect to pay high commissions with HSBC InvestDirect, which doesn’t have an app.

  • Flahmingo review

    Our Flahmingo review tells you how to buy fractional shares of some of your favourite US companies with as little as $1.

  • Popular propane stocks to buy in Canada

    Here’s what you need to know about investing in the propane industry, including 3 popular propane stocks to watch.

  • Best blue chip stocks in Canada and the US

    Using our proprietary algorithm, we’ve found the best blue chip stocks on the TSX, NYSE and Nasdaq based on price, performance and more.

  • WazirX review 2022

    Finder’s WazirX review covers all the information you will need about the exchange. Learn about the cryptocurrencies WazirX offers as well as its fees and incentives.

  • Can I buy Soulgate stock?

    You won’t be able to buy Soulgate stock now that the company has cancelled its plans to go public. But you can still invest in similar companies.

  • Can I buy Authentic Brands Group stock?

    You won’t be able to buy Authentic Brands Group stock now that the company has cancelled its IPO. But you can invest in similar companies.

  • 5 best ways to invest money in Canada in 2022

    What’s the best way to invest money in Canada? Find out about robo-advisors, index funds, cryptocurrency and more in this guide.

  • 8 ways to get free crypto

    Here are a few legitimate ways to earn free crypto. See which methods interest you, find out how to get started and grow your digital wallet.

Ask an Expert

You must be logged in to post a comment.

Go to site