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How to invest in platinum


Platinum investment

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Once an investor has decided which metal, or metals, they wish to purchase, the question of ‘how to invest’ remains. There are several investment products available to potential owners of platinum. Below we explore some of the more common methods, looking at some of their advantages and disadvantages, in order to help you make the decision that best suits your investment needs and ambitions.

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Platinum bullion coins

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Coins are a popular method of investing in platinum. Small in size and a relatively low outlay
per unit, investing in a higher quantity of coins offers a flexibility that buying smaller
quantities of large units sometimes can’t. There will always be a market for an internationally
recognised, government-backed platinum coin such as a Canadian Maple Leaf or an American
Platinum Eagle, making coins a convenient asset to liquefy when the time comes to cash in
on your investment.

At BullionByPost we stock a range of platinum coins for you to add to your investment portfolio,
including some of the famous coins listed below:


Country

Name

Release Year

USA

American Platinum Eagle

1997- present

Canada

Canadian Platinum Maple Leaf

1988-2002, 2009- present

Isle of Man

Platinum Noble

1983-1989

Australia

Platinum Koala

1988-2010

China

Platinum Panda

1988-2005


Platinum bars Platinum Investment Bars

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Although the cost may be higher than coins, if you are buying a 100g bar, for example, investing in platinum bars is a more efficient way of investing in the precious metal. The lower manufacturing costs involved in the production of bars alongside the absence of the sentimental value sometimes attached to coins means that bars will tend to come at lower premiums than coins.

BullionByPost stocks brand new platinum bars in a range of sizes, from several well respected, LBMA approved, international refineries PAMP, Umicore, and Valcambi.

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ETFs
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A platinum ETF is a fund which sells shares in an amount of physical platinum. The main idea behind this type of asset is that it allows an individual to invest in platinum without the additional costs, i.e. premiums and storage, of holding physical metal.

As it is backed by physical platinum, an ETF share is usually worth very nearly as much as 1g of platinum bullion and will fluctuate in line with the spot price. An ETF investor can make money when the platinum price rises and lose money when it falls, in the same way that anyone who owns it in its physical form can.

It can be a convenient way to access the safe-haven that bullion is known to provide, as well as benefit from any potential increases in the metal’s value. However, while it is supported by platinum bullion assets, an ETF is not a contract entitling an investor to that physical commodity. An ETF shareholder effectively owns a debt that is supported by the ETF’s bullion assets, but they are not the rightful owner of any specific piece of platinum. This could mean that, in the worst case scenario where the fund fails, an investor may not be guaranteed to receive the value of their investment in either money or platinum.

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As the UK’s No.1 Online Bullion Dealer*, we view bullion as the most sensible way to invest in platinum or other precious metals. Most investors in precious metals choose them as a portfolio diversifier- a way to secure a part of their wealth in a lower risk, physical asset whose value can’t totally disappear. For us it makes sense, then, to stick to the only form of precious metal that can truly deliver on this – physical, allocated bullion bars and coins.