Investment

Investors have a broad range of options to consider when making investments in PGMs, depending upon their individual circumstances, location and preferences.

These include:

  • direct ownership of platinum and palladium bullion (coins, bars);
  • online/digital bullion accounts with fractional ownership;
  • shares in physically-backed platinum exchange-traded fund (ETFs);
  • Options for those taking positions on the price of PGMs but not requiring physical ownership include futures contracts and other derivatives;
  • direct equity investment in companies that mine platinum group metals (PGMs) brings exposure to company performance and indirectly to PGM prices.

Platinum investments

Platinum bullion is an umbrella term that refers to two types of investment product – bars and coins – that share common characteristics, with guaranteed purity of 99.95 per cent being the key criterion.

Platinum bullion bars are 99.95 per cent fine and made by refineries that meet the stringent ‘Good Delivery’ requirements set out by the LPPM | The London Platinum and Palladium Market, the major international trading centre for platinum bullion. They are typically available in a range of weights, usually per gram or troy ounce, with the option of delivery to door or safekeeping in a specialist vault. The sizes often cater for investment in very small platinum bullion bars – with an entry level price below US$50.

Platinum investment is surprisingly accessible, with ownership of physical platinum possible without the onus of vaulting. Fractional ownership is also an option and, depending on the type of investment, minimum investment levels can start at less than 1 gram.

What is more, as a rare metal with unique properties, in demand as both an industrial and precious metal, platinum is attractive as a long-term store of value. It can form part of a retirement savings plan, in much the same way as shares in a listed company or an exchange traded fund. There can also be tax benefits from holding certain platinum investments, although this varies depending upon jurisdiction and the tax rules applicable to individual investors or trusts. Sales taxes (Value Added Tax) are applicable for physically-delivered platinum bullion in many jurisdictions.

To find out more about platinum investment opportunities visit the website of World Platinum Investment Council – WPIC®

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