Canadian Maple Leaf Platinum
PLATINUM: THE NEW BREED OF PRECIOUS METAL
Gold and silver have typically provided investors with an effective hedge against uncertainty. Today, platinum has become the precious metal of choice for investors.
WHAT IS PLATINUM?
Platinum is a multi-faceted precious metal. It is essential in providing for mankind's greatest needs: food, fuel, electonics, communications and health. The metal plays an integral role in the production of one out of every five consumer goods,including glass, paints, nitric acid, fiberoptic wires and gasoline.
THE MOST PRECIOUS
Platinum is the rarest precious metal:
- The annual supply of platinum is only about 130 tons; over 20 times more gold and 125 times more silver are normally produced each year.
- Approximately 10 tons of ore must be mined from deposits, sometimes almost a mile underground, to produce one pure ounce of platinum. This process usually takes six months.
- All the platinum ever mined throughout history would fill a room less than 25 cubic feet.
STRATEGIC METAL
Platinum has been classified as a strategic metal by the US government which requires the maintenance of an official stockpile. This important designation is due to its unique physical qualities which make it irreplaceable in many defense and industrial applications and in the fight against pollution.
- High melting point (3,215°F).
- Excellent conductivity, ductility and durability.
- Virtually corrosion-proof.
- Strong catalytic properties.
JEWELRY
Approximately 75% of all the platinum produced each year is used by the jewelry industry. Traditionally, platinum is used as a setting for diamonds and other gems. The wide availability of affordable platinum jewelry has caused consumption to double in the past ten years.
WHAT ARE THE BENEFITS OF OWNING PLATINUM
Investor interest in platinum has been growing dramatically over the past several years as sophisticated investors learn more about platinum's unique supply and demand fundamentals.
Portfolio perfmormance is enhanced via diversification. Historically, platinum offers not only dynamic growth potential but the ability to hedge against inflation and uncertainty.
Owners of gold often choose to diversify their holdings with platinum to take advantage of the typical price relationship between the two metals. Platinum tends to trade at a sizable premium to gold, reflecting platinum's relative scarcity to gold and its widespread applications. The extent of the premium of platinum over gold calls attention to:
- The underlying strength in platinum, as the premium tends to widen when platinum supplies are not able to meet demand.
- A bull market in the precious metals; since the platinum market is the smallest, it tends to be the most volitile.
OUTLOOK FOR PLATINUM
The price of platinum is strongly influenced by its availability. Shifts in the balance of supply and demand are very important to platinum prices because above-ground stocks of the metal are very limited. For example, central banks do not hold platinum.
As a precious metal, platinum tends to react to broad economic trends and events in a fashion similar to gold and silver, although possessing its own unique dynamics.
PLATINUM: THE INVESTMENT METAL
Many investors choose to take advatage of platinum's profit potential through the purchase of legal tender bullion coins and small bars. Bullion coins are priced on the spot price of the the metal plus a modest premium for the cost of fabrication, packaging, etc.
Coins are available in a wide range of sizes, primarily one-ounce and fractional sizes, and have a guarantee by the country of origin of the purity (99.95%), liquidity and authenticity of each coin.
Legal tender platinum bullion coins offered by DGSE include:
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AMERICAN EAGLE-AMERICA'S OFFICIAL PLATINUM BULLION COINS