Often when we think about investing in precious metals, our thoughts might turn to gold or silver, but platinum also presents some fantastic investment opportunities. Gold has a very long history, so platinum is the relative newcomer to the precious metals market, having not even been discovered until the end of the 17th century.
Since the 1780s, platinum has been used in industrial applications, but as it has always been difficult to find, demand was often higher than its availability until large quantities were discovered in Russia, making it something that was finally investable.
As with any type of investment, timing is always key when it comes to selling, as prices of platinum have been known to fluctuate greatly. In this article, we take a look at where platinum stands in the market at the moment to help you decide whether now is the best time for you to sell yours.
Historical Platinum Prices and Market Trends
During the 21st century, the popularity of platinum began to soar thanks to its incredible strength, but with the global supply of the metal being less than the total supply of gold, it was still a very rare commodity.
When this is coupled with the fact that extraction only really comes from Russia and South Africa and refinement can take a long time, it is easy to see why the platinum market tends to be much smaller. High demand and low availability soon pushed prices up, and it even became more valuable than gold.
In 2008, investors could expect to receive $2000 per troy ounce – double the price of gold. This is because the supply and mining operations of platinum were threatened at this time, and they were a crucial element in the production of things such as car exhaust systems.
However, in 2022 it sat at half the value of its gold counterpart, thanks to the fact that palladium has been found to be a more efficient alternative, and demand for that has grown instead.
Current Platinum Market Conditions
It is important to remember that it is not all doom and gloom for the sales of platinum, as prices have been on the rise again. Demand for the metal is once again increasing. Palladium might have been found to be a more efficient metal in the process of vehicle production, but it is also 15 times rarer than platinum, meaning that platinum is very much still in need.
Platinum plays a large part in the production of low emissions vehicles, and as the trend towards their manufacture increases, it is likely that the value of platinum will go hand in hand with this.
It is also a premium product when it comes to jewellery production, and its popularity in this market has started to soar in recent years. When it comes to investing, the demand for platinum bars and coins seems to be high.
The majority of platinum comes from South Africa, and the markets do not tend to like the fact that all of the platinum eggs seem to be in one basket. One strike from the miners, a power failure, political coup of natural disaster could bring everything to a juddering halt, making it a very vulnerable market.
There is currently a surplus of the metal in the market, which has contributed to its price being lower than most of the other precious metals that could be invested in. You might think that this is bad news, but it is forecast that platinum might now be moving into a deficit, and when rising demand meets rarer availability, prices can soon begin to rise.
What to Consider When Selling Your Platinum
When you do decide to sell you platinum, timing is everything. As with any investment, prices will rise and fall, so it is important to try and sell when the market is heading in the right direction.
The price you sell your platinum for will always depend on your own financial situation, so keep in mind how much you purchased it for, and what you need to achieve to determine whether now is the time to sell or whether you should hang on to it for a little longer.
You also need to find the best method of selling your platinum, as this can determine how much you make. Dealers and auctions have traditionally been the most popular way to go, but they tend to have high fees attached to them and can be difficult to use. Online dealers now present one of the easier and more effective ways to sell, and they can be much easier to compare to make sure you are getting the best deal.
When selling any precious metal, there will be taxes and fees associated with it, so it is important that you have a good understanding of these in order to know how much will realistically finish up in your pocket when you come to sell your platinum. You should also get your platinum professionally appraised, so that you know exactly what you are selling and can get the best price for it.
Tips for Selling Platinum at the Right Time
To sell your platinum at the right time, keep a close eye on market trends and the news. This can help you predict what it likely to happen to prices and allows you to move quickly while prices are at their highest.
Make sure that you know what value you want to achieve and be realistic with it – consulting with experts and financial advisors can help you to do this. You should also make sure that platinum is not your only investment so that your risk of market changes is reduced.
Is Now a Good Time to Sell Your Platinum?
Whilst platinum has not recouped its all-time highs, it looks set for a resurgence. Watching factors such as the green vehicle emissions developments will help you to see what is likely to happen to platinum, but you should also couple this with other factors in the world and your own personal situation to pick the best moment to sell.