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 Gold $1,784.60   $5.20  Silver $22.89   $0.33  Platinum $988.70   $19.80  Palladium $2,404.10   $-6.80

Platinum is a light gray metal between silver and nickel, and it’s harder than both silver and gold. Platinum is valuable because it’s rare and it’s used in many items. Nearly two thirds of the supply comes from South Africa, and Russia is the second-largest supplier. There are very few North American platinum mines. Even if they prefer to buy gold bars or silver bullion, Scottsdale precious metals collectors might be interested in the following facts explaining why platinum is valuable.

Jewelry

Jewelry has been made with platinum since the 1800s. Countries such as China, Canada, and Australia are minting pure platinum coins as well. The reason platinum is popular in jewelry is that it doesn’t tarnish with exposure to water or air. Its silver-white color and resistance to corrosion are rare in precious metals. Like gold, platinum will dissolve in acids. It’s also hypoallergenic, so people with allergies to metal alloys can wear it. Two well-known examples of platinum in jewelry are the Star of Africa and the Hope Diamond.

Manufacturing

Platinum is used in more than twenty percent of manufactured products. In the automotive industry, platinum is used as an exhaust catalyst to convert emissions into nontoxic substances. Almost a third of platinum goes to the automotive industry. Its unique properties and corrosion resistance also make it well suited for use in technology industries. It works well in a variety of products because it has a melting point of 3,215 degrees and is a conductor of electricity. A few of the unique products that contain platinum include lasers, medicines, gasoline, fertilizers, and other chemicals. Some of the more common products that use platinum include spark plugs, refrigerators, explosives, and paint.

History

In modern history, platinum has been used in production since the 1800s, but items made with platinum have been found that date back to 700 BC. One of the most famous is the Casket of Thebes, an Egyptian sarcophagus with a coating that contains the metal. In 1557, Italian humanist Julius Caesar Scaliger wrote that he found an unknown noble metal that couldn’t be melted, which is why platinum was worthless for most of history. Platinum is usually found in mixed veins while mining, often near gold or palladium. Therefore, natives of America used to think of it as garbage when trying to mine for gold.

Investment

Platinum is a great investment. Some countries create pure platinum coins, and platinum bars are also available. Supply and demand for this precious metal are tight. There’s far less platinum than silver or gold. If mining were stopped today, platinum supplies would only last a few years. There are no stockpiles of platinum like there are for other precious metals.

The value of platinum is easy to understand, 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 at 480-546-8928.

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.

By |2020-07-14T14:22:07-07:00November 28th, 2019|Miscellaneous|0 Comments