It used to be that investors preferred gold and silver, but nowadays there are a number of other precious metals people choose to buy and sell. One of those is platinum. This is in fact, the third most traded precious metal in the world. The metal itself is used in a wide range of industries. The two biggest being auto catalytic converters and jewellery. It is also used in the medical industry and industry in general..
Understanding what platinum is used for will benefit you as an investor, because you will be able to appreciate the dynamics of supply and demand. Thereby be more aware of how the price of platinum could move in the future.
The Main Uses of Platinum
Automotive Industry
The main use of platinum is in the manufacture of catalytic converters. These are used in vehicles, between the engine and muffler of the exhaust system. They are used to filter out the unpleasant components of the exhaust. Not only do they filter them out they convert them into far less damaging carbon dioxide, water vapour and nitrogen. This in turn reduces pollution. They have been used in vehicles for many years but now almost all new vehicles sold have them. This is one use of platinum which is not going to go out of fashion any time soon. Indeed it looks like it will be in greater demand, as manufacturers of cars look for ever more efficient catalytic converters.
Jewellery
Platinum is a very popular material for making jewellery because it is strong, tarnish resistant and can withstand being cooled and heated over and over again. It is generally alloyed with other metals in the platinum group. Copper and cobalt are also used. Platinum has been used for hundreds of years when making jewellery. There is evidence of the Egyptians using it as far back as the 7th century BC. China is the largest user of platinum for jewellery.
Other Industries
Electronics, dental restoration, manufacture of glass, construction of hard drives and medical instruments and sensors all make use of platinum.
As you can see, the demand for platinum is ever increasing. The good news for investors is that mining of this material continues to fall. The majority of platinum is mined in south Africa and this country’s capital expenditure on this type of project is very much in decline. Recycled platinum is increasing, but there is nowhere near enough to make up the deficit.
Some experts are predicting a slow rise in prices during 2018, with a sharp increase taking place in the following years. So now may be the time to buy your precious metals from companies such as Indigo Precious Metals. Orders can be made online and 5 different currencies are accepted.