Platinum is considered a precious metal for one reason it is rare. Platinum is part of the precious metals group of investable metals and is considered a liquid asset.
Unlike gold and silver, platinum requires a lot more heat to melt, and it was not discovered until around 1735. Automotive use of platinum is around 35 percent, 35 percent of platinum is used for jewelry. Industrial applications use about 20 percent of the world’s supply and physically backed investments use about 10 percent.
Platinum is found only in a few areas of the world. Fifty-five percent of the world’s supply comes from South Africa. A little more than 10 percent comes from Russia.
Both countries can turn the supply of platinum off like a light switch if they wanted to. This would create a serious supply problem.
This is a very good reason why you should own platinum at current prices.
Platinum’s performance is equal to the S&P500
Platinum’s performance since the turn of the century is equal to the S&P500 and offers a good way to diversify your assets. Since 2000 the S&P500 has risen about 100%. The price of platinum at the turn of the century was around $400.00 per ounce. Today the price of platinum is around $900.00 per ounce. Platinum was $1,900 per ounce in 2011 and hit an all-time high of $2,300 per ounce in 2008.
This is a very good reason for you to own platinum especially now as it is near the low end of its price range.
Government debt and dithering economic growth are good reasons to own platinum
Global central banks including the Federal Reserve are desperate to create inflation and by doing so your return on a deposit in the bank has diminished over the years and that is not going to change much anytime soon. The Federal Reserve just announced that it was going to buy billions of dollars of treasury bills each month to help the banks keep reserves at high levels. Something is not right when trillions of dollars are floating around back and forth in the economy and they need more. They used to call this quantitative easing and Operation Twist. Let’s see what name they come up with now.
Lawmakers from governments around the world including here at home in the USA are going to have to keep economies afloat by ballooning government debt. The more debt is built up the further debasing of the financial system occurs and risks to the economy increase. If you own platinum it should protect you from the debasement of the whole financial system and from a decline in the US dollar, a dollar that President Trump wants to fall.
So bottom line; an untethered Federal Reserve, congress spending wildly to keep the economy afloat and possible broad weakness ahead in the US dollar are good reasons why you should own platinum.
Platinum is historically cheap relative to gold
Even though platinum is approximately 10 times rarer than gold its price is now 40% less than gold! This is rare! Over the past 40 years, the price of platinum has averaged 150% the price of gold so buying it at its current range of 60% the price of gold is a rare investment opportunity.
Wealth preservation is a good reason you should buy platinum
By some measures, stock valuations are now almost as high as they were in 1929 before a long decline started and nearly as high in 2007 and 2000. Typically, over the long-term stocks fall back to the mean average. The last time that occurred the price of platinum went from around $400 per ounce at the turn of the century and ended up at $900 an ounce in 2004.
To say the least; global geopolitical and domestic political uncertainties have risen dramatically in recent months and it is spreading. This means that global uncertainties along with political changes occurring around the world are probably the start of a period of discontent.
When discontent occurs and stock market valuations are this high, preserving wealth becomes very important. Platinum’s performance and ability to preserve wealth is a good reason for you to buy platinum.
You can hold platinum in your hands or place it in your IRA. Do this before everything becomes murky and preservation of wealth takes over rather than anticipated profits.
Remember, there was little government debt just before the turn of the century. Now it has ballooned and trillions upon trillions of dollars are in assets yielding nothing and the rest of the crowd is buying stocks valued at 1929, 2000 and 2007 valuations.
When building or evaluating your precious metals portfolio, don’t overlook platinum and its long-term advantages. Presently we are recommending the following platinum bullion products: