However, if you want to hold your platinum investment in your hands, this post will break down why to buy platinum bullion.
Why Buy Platinum Bullion?
Platinum is a rare metal with a high amount of industry use. The asset is used in various metals, wires, medical tools, and more. However, because platinum is rarer than even gold, it’s expensive and difficult to find and use. That rarity makes it desirable for investors – especially in the physical sense.
Keep in mind that platinum comes in bars, coins, jewelry, and other forms. These various investment avenues, combined with the rarity, are a good reason for investors to want physical bullion. If you have the metal yourself, you’re not relying on anyone else to protect it. Anything that happens to the asset is on you.
Of course, this also saves you money. Platinum is already expensive. Storing it in a vault or some other third-party group costs you even more – probably a monthly cost. Sure, you’d have to buy a safe to store your physical platinum, but that’s a one-time fee. Plus, it’s important to have the best security possible for your platinum.
If you have a family, platinum bullion is an easy way to pass your investment down over the years. You can have a platinum bar and pass it between three generations, (ideally) increasing its value over time.
Finally, investing in platinum bullion is a fantastic way to diversify your portfolio. It’s always smart to invest in more than one asset at a time.
How To Buy Platinum Bullion
You can purchase platinum bullion online, which is one of the easiest ways to do so. This way, you can get the asset sent to your place of residence or arrange to pick it up for security purposes.
Otherwise, you can purchase platinum in the form of jewelry at most jewelry stores. It’s another pretty easy way to get involved, though it might be a bit expensive due to taxes and extra fees. In fact, the lower the weight of the platinum you’re buying, the more expensive it’s bound to be. This is due to how rare platinum is and how hard it can be to get that small.
Depending on your location, taxes and extra fees might cost more or less as well. It’s important to do your research before choosing a place to buy.
Bullion Compared To Other Methods
Aside from bullion, there are various other ways to invest in precious metals. We’ll compare them to the physical method here.
Exchange-traded funds (ETFs) are a popular way to invest in platinum. It’s basically the same thing as the stock market. You’re investing in a platinum-like stock. However, there are extra fees along with this. That, and it’s worth noting you’re not actually holding platinum here. Physical bullion allows you to actually hold and store your investment.
Futures allow you to bet on the price of platinum, earning or losing based on how right you are. While you’re not technically investing in platinum, similar to ETFs, you do have the option to hold it physically once the investment is finished.
You can also invest in platinum via stablecoins. These are cryptocurrency assets tied to the value of platinum. They allow you to invest in precious metals without much hassle, though it can be confusing for those not into technology. That, and you aren’t holding your assets physically, which some precious metal investors might not appreciate.
Hopefully, you can now make a decision on whether or not you should invest in platinum bullion. While there are various ways to do so, bullion allows you to hold assets in your hand. That’s one of the most appealing ways to invest.