Learn all the ways you can invest in platinum, including physical metal and paper asset alternatives. You’ll also discover how platinum protects against inflation and provides portfolio diversification to help protect your wealth.
Are you watching your savings steadily lose value while prices continue to climb? Deloitte forecasts inflation above 3% through Q3 2025, so this might be a likely scenario.
Many investors turn to gold and silver to protect their wealth but don’t forget about platinum and its advantages as another option. This rare metal serves as a hedge against inflation, and its industrial applications in everything from catalytic convertors to medical devices make it valuable in times of economic uncertainty.
If you want to understand how to buy platinum and the ways it can protect your wealth, this article covers everything you need to know to get started.
Platinum overview
Platinum is one of the rarest elements on Earth and about 80% of the world’s production happens in South Africa. It’s a dense, malleable, and highly unreactive industrial metal, which makes it useful in several industries.
It’s part of the platinum group metals, which also includes:
Palladium
Rhodium
Ruthenium
Iridium
Osmium
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Why buy platinum
Platinum may not be as well-known as gold, but there’s several compelling reasons for you to buy it. Here’s why it could be a smart move:
Inflation protection
Platinum can protect your wealth during inflationary periods. When inflation leads to a drop in currency value, platinum prices usually rise, which helps preserve your purchasing power. This happens because platinum’s price is in currency terms, so when the value of currency weakens, it takes more to purchase the same amount of platinum.
No digital risks
Holding physical platinum in bars or coins means you are free from digital threats like hacking, data breaches, or system failures that can affect electronic investments. Unlike stocks, bonds, or cryptocurrencies that depend on online systems, platinum is a tangible asset that can give you a level of security that purely digital investments cannot match.
Direct ownership
With physical platinum, you have direct ownership without needing third-party oversight or digital platforms. Stocks depend on company performance, and digital assets rely on internet connectivity, but owning platinum gives you full control.
You can buy, store, and sell it as you see fit.
Portfolio diversification
Adding platinum to your portfolio can help balance risk by providing an asset that behaves differently from stocks or bonds. Platinum’s value comes from industrial demand and market trends, which gives it a unique place among other investment assets.
It can hold or even increase in value during economic downturns, offering a layer of protection against market volatility. As Reddit user mrdebro44 shared on r/Platinum forum, “I like Pt for diversification of my stack, and I just believe now is the calm before the storm,” pointing to platinum’s potential as a strategic asset for uncertain times.
Portability
Physical platinum is highly compact and portable, which makes it easy to store and transport. For example, as of this writing, platinum is $946.00 per ounce. And one ounce of platinum is about the size of one postage stamp. So if you buy 10 ounces of platinum bullion, you can carry $9,467 in one bar that’s about the size of a cell phone.
Ways to invest in platinum
There are different options for platinum investing for various levels of experience, risk tolerance, and investment goals. Here are some common ways people invest in platinum:
1. Physical platinum bullion
Most investors like buying physical platinum for a more hands-on approach. This could be in the form of platinum coins or bars.
Platinum coins
Coins come in sizes ranging from small fractional denominations, such as 1/10 ounce and 1/4 ounce, to larger denominations like 1 ounce and even 1 kilogram or more for certain bullion coins. Popular coins include:
Canadian Platinum Maple Leaf
Austrian Vienna Philharmonic
Platinum bars
Bars come in sizes ranging from 1 gram to 1 kilogram, with popular denominations including 1 ounce and 10 ounces. Common brands include:
PAMP Suisse Platinum Bar
Valcambi Platinum Bar
Johnson Matthey Platinum Bar
2. Exchange-Traded Products (ETPs)
Exchange-traded products like platinum ETFs (Exchange-Traded Funds) are another way to gain exposure to platinum. These funds pool investors’ money to buy platinum assets, which they can trade on stock exchanges.
The drawback of this platinum investment is that it is a paper asset, which means it relies on third-party systems, has cyber risks and has increased management fees.
3. Platinum mutual funds
You can also buy mutual funds that focus on platinum investments. These funds might invest in companies involved in platinum mining stocks or other parts of the platinum industry, so they provide indirect exposure to platinum’s market value.
Just like ETPs, mutual funds are paper assets. The value of your investment depends on someone else’s performance, such as the profitability of the platinum mining companies or the investment manager’s decisions.
4. Platinum futures
Platinum futures contracts or options allow you to buy or sell platinum at a predetermined price on a specific future date. When you enter a futures contract, you’re committing to either purchase or sell a specified amount of platinum at the contract’s expiration.
Investing in futures can offer opportunities for profit but it also carries significant risks due to market fluctuations and leverage.
Forecast demand for platinum
Investment demand for platinum is showing a notable rise. In 2024, it’s projected to hit 517,000 ounces. This increase comes from growing interest in platinum bullion bars, especially in China, along with rising investments in platinum exchange-traded funds (ETFs).
In fact, in just the second quarter of 2024, investment demand skyrocketed from 117,000 ounces to 462,000 ounces, reflecting a strong upward trend. This surge in demand is happening alongside a platinum market deficit.
The World Platinum Investment Council (WPIC) anticipates a record shortfall of 1 million ounces in 2024.
Factors that impact platinum prices
Like other precious metals, platinum prices can change for several reasons. Here are some of the key factors:
Supply and demand
Platinum is rarer than gold, and its supply depends heavily on mining in a few key countries like South Africa and Russia. When production slows down or faces disruptions due to political issues, labor strikes, or natural disasters, platinum supply tightens, which can drive price increases.
Demand also impacts pricing, so if there’s a dip in any of the industries that use platinum, demand and overall pricing decrease. To get an idea, here’s the key industries that rely on platinum:
Automotive industry: Approximately 40-43%
Jewelry: About 17.6-18%
Industrial applications: Roughly 10-15%
Chemical sector: Around 10%
Investment: Approximately 3-5%
Other uses (electronics, glass manufacturing, and medical devices): About 10-15% combined.
Economic conditions
Economic stability and inflation also affect platinum prices. During economic uncertainty, investors usually turn to precious metals like platinum as safe assets, boosting their demand and increasing prices. For example, in the 2008 financial crisis, the price of platinum soared over 184%.
In times of strong economic growth, the demand for industrial uses of platinum may rise, while investment demand may lessen if other investments become more attractive. In 2017 and 2018, demand in the petroleum and auto industry rose by about 9% year over year. However, at the same time, investors focused on other areas like equities, and investment demand dropped by 2%.
Currency strength
Since platinum is priced in U.S. dollars, fluctuations in the dollar’s value impact its price. When the dollar is strong, it makes platinum more expensive for buyers using other currencies, which can reduce demand and lower prices. For example, in 2014, the U.S. dollar grew in strength compared to other currencies, and platinum prices fell 20% because it became more expensive for international investors to buy.
On the other hand, a weaker dollar can make platinum more attractive internationally, potentially raising its price. We saw this in 2018 when the U.S. dollar weakened, and the price of platinum rose by 24%.
Market speculation
Platinum prices can also be influenced by market sentiment and speculation. If investors believe that platinum’s price will rise due to anticipated supply issues or economic conditions, demand can increase, driving up the price.
Speculative trading can sometimes lead to quick price changes that aren’t directly tied to supply and demand fundamentals.
Buying platinum in 3 easy steps
Here’s how you can get started in physical platinum investing:
Step 1: Find a trusted dealer
Choose a trusted dealer like Swiss America that has a strong reputation, a long track record, and great customer reviews. Look for the dealer’s certifications to make sure you’re purchasing quality platinum.
You can also check to make sure the dealer holds accreditations from industry organizations such as the American Numismatic Association (ANA) or the Industry Council for Tangible Assets (ICTA).
Step 2: Buy platinum bullion
Create an account with your chosen dealer and buy platinum bars or coins. If you’re funding your purchase through a retirement account like a 401(k) or existing IRA, make sure to follow IRS requirements, which include:
Choosing an IRA custodian
Buying IRA-approved precious metals
Following all tax regulations
Step 3: Store and monitor
Your chosen dealer ships the metals to you or a third-party depository if you choose that route for ongoing storage. For precious metals IRAs, your custodian will arrange secure and IRS-approved storage at a depository.
To check the status of your platinum investments, you can track what’s happening in the overall market. Swiss American customers can see value in real-time through our customer portal, which also provides market insights and investment recommendations.
Working with Swiss America to buy platinum
For over 40 years, we’ve assisted thousands of satisfied customers in selecting the best precious metal investments tailored to their needs. Here’s why so many turn to us for platinum, silver, and gold:
Education: We provide customers with educational resources, including detailed guides, regular podcasts, and daily news updates.
Transparency: We offer clear pricing and detailed information on additional costs such as sales tax, insurance, storage, and how to use retirement funds for gold, silver, and platinum investments.
Credentials: We’re committed to industry standards and assuring the highest quality metals, which gives customers confidence in their investments.
How to invest in platinum
For anyone looking to protect their portfolio from the impact of inflation or other economic uncertainty, investing in platinum bars or coins is a great way to diversify your risk.
To learn more about how to buy platinum, connect with the Swiss America team today!
How to buy platinum: FAQs
Is platinum a good investment?
Platinum is a good investment, especially if you want to diversify your portfolio with precious metals. Its rarity and industrial demand drive its value, but it is also more volatile than gold, so it’s better for investors who are comfortable with market fluctuations.
How much is 1g of platinum worth?
As of this writing, platinum is currently $32.15 per gram. Note that market conditions change daily.
What is the best way to buy platinum?
The best way to buy platinum is through a reputable dealer, where you can purchase platinum bars or coins. Look for dealers with positive reviews and experience in precious metals to have a smooth transaction.
Note: The information in this post is for informational purposes only and should not be considered tax or legal advice. Please consult with your own tax professionals before making any decisions or taking action based on this information.
