Gold is an iconic precious metal for many reasons. But other precious metals like platinum have been gaining steam due to their value and usefulness in real-world industries. The supply of platinum is much lower than that of gold, and the mining process is much more complex than that of the ‘yellow metals.’
Platinum, able to be bought in the form of coins, bars, rounds, and even stablecoins like Platinum Coin, is a malleable metal that is often used in turbine engines, in the medical industry, and in the petroleum sector.
About 30-38% of all mined platinum is made into jewelry. The metal is becoming popular as jewelers and consumers begin to classify the metal as superior to gold. Platinum is also a component in a variety of other products, including fertilizers and pacemakers.
Platinum’s value is largely tied to its supply and demand and often correlates with the wider economy. For example, platinum prices often fall in unstable times as demand for cars, machinery, and turbines decreases.
Prices of the metal dipped sharply in 2015 when the Volkswagon emissions scandal hit the headlines, leading to a disinterest in diesel engines in the short term.
Part of platinum’s rarity has to do with its difficult extraction process. Much of the globe’s supply is found in mines across northern South Africa, a nation where political and logistical challenges have made it very difficult to conduct mining operations.
Platinum is a metal often found alongside nickel, copper, and chrome. Miners have to carefully extract while working around these other metals and then refine deposits before they can be classified as pure. This process makes platinum a rare metal that is expensive to mine – driving up the spot price.
Investors eager to take advantage of platinum’s rarity and value have a number of ways to do so. Coins, bars, and rounds are simple ways to invest in the metal, but the metal’s high spot price often means platinum is often inaccessible to the average consumer.
Markups for smaller denominations of platinum bullion can quickly become exorbitant, limiting the ability of investors with smaller amounts of money to invest in the metal. As a result, people often wonder how they can invest in rare metals like platinum without breaking the bank.
The answer is found through diversifying a portfolio with platinum-backed stablecoins, like Platinum Coin. These cryptocurrencies allow investors to place money in the world of digital assets and physical bullion at the same time.
Investing In Platinum At Affordable Price Points
Stablecoins backed by precious metals represent the best way to invest in platinum at lucrative prices. Smaller bars and rounds of platinum come with higher markups and premiums, which means investors waste money better spent on acquiring more bullion.
A fractionalized cryptocurrency backed by platinum gives investors the ability to buy, sell, and trade digitally and then redeem holdings at any time for physical bullion in a secure and safe manner. Buyers do not have to worry about the storage and security of physical platinum. They can enjoy the ease of trading their holdings for other cryptocurrencies and further diversifying their digital portfolio.
Platinum Coin is one option for investors looking to purchase platinum without breaking the bank. The coin is fractionalized, which means buyers can purchase any amount of the digital currency at any time.
Cryptocurrencies Backed By Precious Metals As An Investment Strategy
Precious metal-backed cryptocurrencies are a unique addition to the booming world of stablecoins. Cryptocurrencies backed by precious metals are increasingly desired as many express skepticism about fiat currencies.
The lion’s share of the stablecoin world is still devoted to fiat-backed stablecoins like Tether, but bullion-backed options are appealing since the coin’s value can rise above the metal’s spot price in certain instances of heavy trading.
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