Can You Buy Platinum? How to Invest in the Precious Metal

Platinum, a rare and versatile precious metal, offers investors a way to diversify portfolios. Its unique properties and diverse applications across industrial, automotive, and jewelry sectors contribute to its value. Platinum is available in various forms, catering to different investment strategies.

Forms of Platinum Available

Investors can acquire platinum in several forms. Physical platinum, like bullion, provides direct ownership. Bullion comes as bars and coins, manufactured with high purity, often .9995 fine (99.95% pure). These assets are for direct investment, with common weights from one troy ounce to larger denominations.

Platinum is also popular for jewelry, valued for its natural white luster, durability, and hypoallergenic properties. Jewelry prices include craftsmanship and design, differentiating it from investment-grade bullion. While platinum jewelry retains value due to its metal content, it is not a direct investment vehicle like bullion because of added costs and potentially lower platinum content, often around 95% purity (Pt950).

Beyond physical holdings, investors can gain exposure to platinum through non-physical financial instruments. Exchange-Traded Funds (ETFs) that track platinum prices are a popular option, representing ownership of physical platinum without direct possession or storage. These ETFs hold platinum bars in secure vaults and trade like stocks on exchanges, offering liquidity and ease of transaction. Another indirect method involves investing in stocks of companies engaged in platinum mining. This approach provides exposure to the metal’s market value but also ties the investment to the performance and operational risks of the specific mining company.

Where to Purchase Platinum

Acquiring platinum involves several channels. Online precious metals dealers offer a convenient, competitive option for physical platinum. Companies like APMEX, JM Bullion, and OneGold offer a wide selection of bars and coins, with transparent pricing and secure delivery. These platforms allow investors to compare prices and products.

Local coin shops and bullion dealers provide an alternative for in-person transactions. They offer immediate possession of physical assets and personalized advice. While lacking extensive online inventory, local shops provide a direct buying experience.

For platinum jewelry, dedicated jewelry stores are the primary source. Jewelers offer designs and craftsmanship, providing authentication and ensuring quality. Consumers prioritize aesthetic appeal and design over pure metal content, a key distinction from bullion purchases.

Non-physical forms of platinum, such as ETFs and mining stocks, are purchased through standard brokerage accounts. Investors can open an account with a brokerage firm or use an online trading platform to buy shares of platinum-backed ETFs or stocks of platinum mining companies. This method offers a streamlined approach to gaining platinum exposure without logistical considerations of physical storage.

Key Considerations Before Buying

Before purchasing platinum, several factors warrant consideration for a secure and informed investment. Understanding platinum’s purity and hallmarking is important, especially for bullion. Investment-grade platinum boasts a purity of .9995 or higher, often marked as “Pt999” or “Pt950” for jewelry (99.9% or 95% pure). These hallmarks, engraved on the item, certify the metal’s purity and origin.

Platinum pricing involves two components: the spot price and the premium. The spot price is the current market value for one troy ounce of raw platinum, fluctuating based on global supply and demand. The premium is an additional cost charged by dealers above the spot price, covering expenses like fabrication, minting, and distribution. Premiums vary, influenced by product size, type, and market conditions.

Secure storage options are a significant consideration for physical platinum. Home safes offer convenience and immediate access but may lack professional security and insurance. Bank safe deposit boxes provide a more secure off-site option, though access is limited and contents are not always insured. Third-party vaulted storage services provide the highest security, often including comprehensive insurance.

Authenticating platinum and choosing reputable sellers are important steps to mitigate counterfeits and scams. Purchase from well-established dealers with positive customer reviews and industry certifications. Reputable dealers often provide certificates of authenticity and may offer buyback guarantees, providing security and liquidity for your investment.