Why You Should Buy Platinum
Platinum is the precious metal of the future. Don’t let tradition hold you back – it could be losing you a fortune. Gold is old. Instead of sticking to your comfort zone, take our advice, and invest in platinum. Indigo Precious Metals deals in numerous precious metals, including gold and platinum. If you need expert advice on how to invest or store your precious metal bullion or coins, rest assured, we can help. There is huge demand for platinum, one of the world’s rarest precious metals. With applications extending far beyond mere jewelry, including medicine, automobile manufacture, and more, platinum deserves a second look before you invest. Don’t be a sheep who follows the flock. Take back control of your financial future. Platinum investment is not only extremely profitable but also highly reliable. Today’s article looks at why you should go for platinum. You can learn more about buying platinum at www.indigopreciousmetals.com.
Demand for Platinum in Automotive Industry
Platinum prices, as with all precious metals, rises and falls depending on factors like the economy, political uncertainty, and industry demand. One of the largest contributors to platinum demand is the automotive industry which uses platinum to make catalytic converters. Strong auto sales frequently drive up platinum demand, accounting for around 40% of all platinum use, more than any other industry. Platinum demand for the jewelry industry sits below this figure at only 32% were as other industries, including electronics and medical equipment, make up the remaining 22%. In China alone, auto sales amount to more than 20 million units per year due to economic growth and increasing urbanization. What does this all mean? It means that platinum, no matter the scenario, will always be in demand. This makes it an extremely wise investment option for when times are tough. If you’re saving for a rainy day or just preparing for the future, we recommend platinum as your precious metal of choice.
Drawbacks or Opportunities?
Growing demand for any precious metal, however, while potentially lucrative, does have its drawbacks. As platinum prices rise, recyclers start to retain their positions in the market, making for a less certain market. But why do this? To liquidate at higher prices, of course. It’s difficult to say how much these companies hold at any one time, which leads to confusion over the quantities entering the market. This is a common strategy we’ve seen time and time again. But while projections continue to indicate shortfalls in platinum demand, they rarely seem to have much effect. Thrifty manufacturing processes and recycling of second-hand auto-catalysts keep demand for platinum at a near-constant high by ensuring maximum profitability.
Mining Companies Halting Operations
We all know that precious metals like platinum come from under the ground. But mining operations are expensive to maintain, and numerous mining companies halt or cease production entirely every year. Frequent strikes and rising costs of operation, not to mention the fluctuating profits, make for uncertain ground. As such, many companies end up sinking. But while this is bad for them, it’s good for investors as less platinum entering the market inflates the price of existing platinum. Inflation is the perfect time to cash out as you’re sure to receive the maximum returns on your initial investment.