Investing in platinum coins can be an excellent way to diversify your assets and protect yourself from market uncertainties. However, before you invest your money in this way, you must understand that the spot and futures prices of the metal can be volatile.
Of all precious metals available, platinum currently has one of the highest values per gram or ounce, and is worth considering by those looking to invest for reasons we will discuss here. Platinum is a rare metal and is only mined in a few areas worldwide, so platinum prices may rise or fall in wide swings, regardless of the overall market’s general fluctuations. Platinum coins are often purchased as inflation hedges, or for retirement purposes. Here we’ll discuss some tips for people looking to invest in this type of coin.
Understand this precious metal
As mentioned before, platinum is a highly sought-after precious metal that fetches a high value per unit purchased. It is used industrially across the automotive industry especially because it is very resistant to tarnishing and corrosion. These qualities can make it an excellent investment because as the demand for platinum increases, so do platinum coins’ prices.
Because this metal is quite rare, platinum coins are scarce, making them even more valuable when it comes to investment. They are a store of value because their preciousness is recognized worldwide.
Understand what your goals for investment are
As with all investments, it is vital to be clear on your goals up front prior to investing, and investors’ goals can vary widely. Some may want to convert a high percentage of their income into platinum coins, while others may be looking to keep a larger amount of cash in reserve if the market declines, to be able to buy a dip in price. Others may want to buy platinum to diversify their current precious metals portfolio, or as a hedge against inflation. Whatever your goals, they should be set before you start investing. Understanding and gaining clarity around your goals and risk tolerance is a crucial first step in funding a portfolio because the price of platinum coins can be volatile, and thus may rise or fall in price unexpectedly. Such fluctuation can lead to your emotions overly influencing an investment trajectory, and this can create problems.
Research the options available for buying coins
You must research the market before investing in platinum coins. Different kinds of such coins are available, including Proof platinum coins, coins produced by government and private mints, certified and uncertified coins, and more, but they are all rare to varying degrees and can be worth thousands of dollars each. Before investing in any platinum coin, it is best to research its quality by checking out its mintage year, minting facility, purity, designer, etc. Also consider the weight of the coins you’re looking to buy – do you want to buy fewer and heavier (and thus more valuable) coins, or have lighter coins on hand for some reason? Your investment will better suit your financial needs if you thoroughly research the market and the coins you want to invest in.
There are many types and kinds of platinum coins, and they vary in quality and relative value
Several companies produce platinum coins, and their coins’ value may differ according to various factors. For example, some produced by certain mints may be less sought-after than those from other mints. Only certain platinum coins are eligible for inclusion in precious metal IRAs within the US while others are not and therefore may command a lower value (and clash with your investment goals). This comes back to knowing your goals and why you are buying this type of investment.
Choose what you want to buy, and the venue you’ll buy it from
When you’re looking to buy platinum coins for investment, you’ll have a few different options, not only in the types of coins available but in their source. To get the best deal possible, research various sources and determine what kind of investment will work best for you. Your decision should be based not only on the price but also on the overall value you’ll receive. For example, if you are looking to invest in platinum coins in $100 denominations, or in 1 oz or 1/10 oz coin increments, it is better to buy from a company that guarantees their value and purity than from a company that might not provide such warranties.
Consider how you will store your coins, and how safe this storage will be
When you invest in precious metal coins, you likely have the goal of obtaining a certain amount that you plan on holding onto for a long time. Common ways of storing your coins is through a bank account, a custodian (as with precious metal individual retirement accounts) or a private vault. When doing your due diligence, ask about which measures and precautions are available and which you should take when placing your money into that particular storage facility.
Remember that there are experts available to help you
One excellent way to help protect your precious metals investment is to seek the advice of trained experts with long experience dealing and advising in platinum coin investment and storage. Many companies specialize in this investment and have spent years perfecting their knowledge and processes of taking care of their customers. For example, some companies will buy back your platinum coins or exchange them for cash if you ever want to part with them. Companies like these often provide storage services, so you don’t need to worry about where to keep your coins.
The price of platinum coins may rise or fall, but if you follow these steps when you invest in them, you will more likely face a greater return. Remember to learn as much as possible about the options before investing. The more you know about platinum coins or bullion, the better and more secure your investment will be.
Disclaimer: This page is intended for informational purposes only. It should not be considered as investment or financial advice. You should speak to a certified financial professional prior to any investment to determine the best investments and investment mix for your specific goals and situation.