Top Three Reasons to Invest in Platinum

By Erin Fischer

When planning your trip to, let’s say, Italy, you make a list of the top three places to visit. Why not do the same when you’re planning your portfolio? With all the overwhelming opinions about adding precious metals to your portfolio, which ones should you purchase, and why? Here are three reasons to invest in platinum now, while futures are at historic lows. This could be a key investment for diversification!

1. The gold-platinum ratio is at a historic low. The gold-platinum ratio indicates the number of ounces of platinum it takes to buy one ounce of gold. Platinum is currently a great investment, as its price is highly undervalued compared to the price of gold. Platinum prices currently sit around $920 per ounce, whereas gold prices are hovering around the mid $1240s. Historically, it has always been more valuable than any other precious metal, but ever since the financial crisis of 2008, platinum and gold prices have been very close, with gold prices often surpassing platinum prices in the past six years. In March 2008, for example, gold prices averaged $968.43 per ounce, whereas platinum prices reached an all-time high of $2,253 per ounce. Almost ten years later, we are seeing a reversal in this trend. As a result, the gold-platinum ratio has significantly increased. In March 2008, the gold-platinum ratio was 0.46, whereas now the ratio is at an all-time high at 1.35. This trend cannot be sustained.
2. World platinum supply is expected to fall. According to a report by the World Platinum Investment Council (WPIC), platinum supply could drop by 2% year-on-year to 7.33 million ounces by the end of the year. The decline in supply can also be linked to labor strikes at South Africa’s platinum mines. South Africa is home to over 80% of the world’s platinum group metal reserves. While supply is dropping, demand is not likely to drop, because platinum has widespread industrial use. Although a 2% drop may not seem like a lot, the global demand for platinum is steadily increasing.
3. Investment experts predict that platinum could soon see large gains. According to Dr. Steve Sjuggerud, editor of True Wealth Systems, platinum is at “its cheapest level compared to gold in history. And that makes [it] a much better long-term ‘buy’ than gold right now.” Sjuggerud explains that not only is it rarer than gold, it also has numerous industrial uses. Although platinum prices are up just 2.9% year-to-date, many believe it’s a matter of time before it makes a surge again. This unusual undervaluing suggests it could soon boast greater upside potential than gold. TD Securities, for example, predicts that platinum will average around $1,225 per ounce in 2018. John LaForge, head of real-asset strategy at Wells Fargo, explains, "We believe that this spread difference [between gold and platinum] will close over the coming years, and gold will once again be cheaper than platinum. The ideal investment positioning here is to go long platinum, short gold, or what we call a spread trade."

Your Next Opportunity to Invest in Platinum

If the idea of platinum’s growth potential intrigues you, we now have two great ways for you to invest in platinum while futures are at historic lows!

We can now offer you a limited supply of 1-ounce platinum American Eagles for as low as Spot + 13.25% per ounce*, an incredible opportunity considering so few Eagles were minted this year. Unlike gold and silver American Eagles, which are produced throughout the year, the U.S. Mint only produces platinum Eagles when there is enough supply and demand or when they see a two-way market. Furthermore, because minting each year isn’t required, once the 2017 supply runs out, so does your opportunity to invest in them.

In addition to American Eagles, we’re also offering 1-ounce platinum bars for as low as Spot + $50 per ounce*. Platinum bars are one of the most popular ways to invest in the precious metal. Each bar boasts one ounce of .9995 fine platinum, and will be our choice of LBMA approved brands. Furthermore, they’re incredibly easy to buy, store, and sell, and are eligible for Precious Metals IRAs.

Although current low platinum futures would suggest gold is rarer, the world’s platinum supply is only a fraction of the world’s gold supply. Whereas platinum futures in March 2008 were over double those of gold, gold spot price currently has about $300 on platinum. If you’re looking to take advantage of these low spot prices, our limited supply of platinum bars and 2017 American Eagles are an offer you don’t want to miss!

Call us at 800-831-0007 or send us an email to diversify your portfolio before supply runs out!

*Prices are subject to change based on market fluctuation and product availability. Offer expires June 29, 2017. Prices reflected are for cash, check, and wire transfers only. Platinum bars will be our choice of LBMA approved brands. Free shipping, handling, and insurance on purchases of 10 ounces of platinum or more.