Does Platinum Retain Its Value Over Time?

Platinum comes with various advantages, and holding its value over time is one. The precious metal is rare compared to others, and it remains shiny even after continuous wear and tear over the years, maintaining its allure as it’s passed down from generation to generation. Even if they prefer to buy gold bars or silver bullion, Scottsdale precious metals collectors might be interested to learn how platinum holds its value and strategies that can increase the appeal of platinum pieces.

Rarity

Miners extract thousands of tons of precious metals, including gold, every year. In contrast, approximately 135 tons of platinum are mined. This is because there are only an estimated 200 million ounces of platinum, while there are over 5 billion ounces of gold above ground. As a result, its rarity can make platinum more valuable when compared to most precious metals. The well-formed crystals in pure platinum make it rare, giving it more density and increased purity.

Versatility

Buyers prefer to collect platinum because it’s one of the least reactive metals. As a result of that strength, it can hold its value. Compared to gold, platinum is more durable and less likely to tarnish or corrode over time. Therefore, whether for use in electronic devices or forms of jewelry, it’s more sought after.

Platinum’s versatility prevents it from needing to be plated with additional layers. Instead, it’s corrosion resistant and can maintain its unique, vibrant, and attractive appearance.

Growth within the Industry

As supply and demand change for precious metals, the prices will also change. Platinum can increase its value almost twice as much as other metals, such as gold. This holds during different periods because of economic growth and stability. The high value and scarcity of platinum helps it hedge against inflation throughout various fields, which include the automotive, dental, electronic, and jewelry industries.

Growth and discoveries worldwide, along with changes in mining regulations, increase platinum’s value. Jewelry is one of the most influenced platinum industries because of its heavy reliance on metal. Some factors that increase its value are consumer behavior, production costs, and the development of alternative materials.

Reduced Maintenance

Unlike most competitors, platinum doesn’t need extensive maintenance to keep its look. For instance, white gold can begin to turn yellow over time. However, platinum will maintain its natural white metal appearance in the future. As a result of its strength and durability, platinum can be the safest setting for diamonds, keeping the stones in place without breaking from force.

Keep platinum away from hairsprays and perfumes, especially excessive usage. When swimming, remove your platinum, and avoid exposing your piece to cleaning products and harsh chemicals.

Platinum can be a fantastic addition to any precious metals collection, and you can trust you’ll get what you pay for when you buy platinum from a reputable firm such as First National Bullion. Scottsdale residents can rely on our professionalism and expertise when they’re ready to invest in platinum, gold, and other precious metals. Give one of our experienced dealers a call today.

The statements made in this blog are opinions, and past performance is not indicative of future returns. Precious metals, like all investments, carry risk. Precious metals and coins may appreciate, depreciate, or stay the same in cash value depending on a variety of factors. First National Bullion does not guarantee, and its website and employees make no representation, that any metals for sale will appreciate sufficiently to earn the customers a profit. The decision to buy, sell, or borrow precious metals and which precious metals to purchase, borrow, or sell are made at the customer’s sole discretion.