Many investors are unfamiliar with the role that precious metals play in the investment portfolio, and many of those who are usually restrict themselves to silver and gold. However, there are other metals which can provide significant investment value, and one such example is platinum.

An Overview of Platinum

Platinum is a precious metal which is white and gray in color, and at first glance it can be confused with silver. In fact, its named is derived from the Spanish term “platina” which means “little silver.” It is found naturally in Africa, Latin America, the Ural Mountains and the western part of the U.S. It is often found in close proximity to other metals such as osmium, gold, palladium and copper.

Platinum’s Historical Role

The existence of platinum has been known since ancient times but man didn’t really begin mining and using it extensively until the 18^th century. The primary reason for this is because the ancients didn’t have the technology to work with it and unlike other metals it could not be liquefied by mere fire. It is for this reason that until modern time’s they held very little value. In fact, both the Indians and later Spaniards of Central America disliked it because they considered it an obstacle as they mined for gold.

However, advances in technology have unlocked the power of platinum and today it is one of the rarest precious metals in the world, with an annual production that exceeds 8 million ounces. Here are some reasons you should want to own it.

Platinum’s Investment Value

As with silver, demand for platinum is growing, both for investment and industrial purposes. It is used in the manufacture of at least twenty percent of global merchandise, and new uses for it are still being discovered. It has a number of properties which are prized, including its exceptionally high melting point, corrosion resistance, tremendous strength and ability to conduct electricity. The automobile manufacturing industry in particular has great demand for this metal. Investment wise, a growing number of institutions such as pension and mutual funds have been investing in platinum.

As with gold and silver, they can be used as an inflationary hedge as it is a true store of value that cannot be printed or keyed into a computer. It has a value which is tied to the real world. Performance wise, it is similar to other metals in that it performs best in economic downturns and recessions. The best way to own platinum is to physically invest in it.

While some choose to open ETFs (Electronically Traded Funds), there is a true peace of mind in having platinum that you can physically hold, store and transport. The downside to this precious metal however is that it does not come in the wide range of products that are seen with silver and gold, but it can still be purchased in the form of a bar, which will usually sell in smaller sizes than silver or gold. Platinum coins are also available and are issued by many government mints.