science

Platinum as an investment

Platinum as an investment is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Platinum as an investment rather than just read about it. In short: Investment in platinum is often compared in financial history to gold and silver, which were both known to be used as money in ancient civilizations. Experts posit that platinum is about 30 times scarcer than gold and approximately 100 times scarcer than silver, on the basis of annual mine production.

Key takeaways

Platinum as an investment belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Platinum as an investment to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Platinum as an investment from memory before moving on to harder problems.

Reference excerpt

Investment in platinum is often compared in financial history to gold and silver, which were both known to be used as money in ancient civilizations. Experts posit that platinum is about 30 times scarcer than gold and approximately 100 times scarcer than silver, on the basis of annual mine production.

Overview Platinum is extremely scarce even when compared to other precious metals. A significant portion of global platinum is mined in South Africa. New mine production totals approximately less than five million troy ounces (160 t) each year. In contrast, gold mine production runs approximately 82,000,000 troy ounces (2,600 t) annually, and silver mine production is approximately 547,000,000 troy ounces (17,000 t) annually. Platinum is traded on the New York Mercantile Exchange (NYMEX) and the London Platinum and Palladium Market. To be saleable on most international markets, platinum ingots must be assayed and hallmarked. Platinum is traded in the spot market with the code "XPT". When settled in United States dollars, the code is "XPTUSD".

Investment vehicles

Exchange-traded products

Platinum is traded as an ETF (exchange-traded fund) on the London Stock Exchange under the ticker symbol LSE: PHPT and on the New York Stock Exchange as ticker symbols PPLT and PLTM There are also several ETNs (exchange-traded note) available.

Platinum coins and bars Platinum bars are available from different foundries in different sizes, beginning at 1 gram, on up to 1 oz, and even 10 oz and 1 kg bars. Platinum coins are another way to invest in platinum. Since 1997, the United States Mint has been selling American Platinum Eagle coins to investors.

Jewelry as investment Jewelry has long been a store of wealth in countries such as India, with platinum increasingly popular as a metal of choice for jewelry in the nation with one of the highest cultural tendencies for jewelry purchases for both gifts and for investment. This method of preserving wealth is also popular in Europe as well as the United States.

Accounts Most Swiss banks offer platinum accounts where platinum can be instantly bought or sold just like any foreign currency. Unlike physical platinum, the customer does not need to touch or come into physical possession of the actual metal but rather has a claim against the bank for a certain quantity of platinum metal.

Futures Another investment option is to create a futures contract where a predetermined time and place is designated to buy or sell the platinum. Unlike options, the transaction is an obligation, and not a right. The New York Mercantile Exchange (NYMEX) and the Tokyo Commodity Exchange (TOCOM) trades in platinum futures with a minimum contract size of 50 troy ounces and 500 grams respectively.

Other Additional methods of investing in platinum include owning shares in mining companies with substantial platinum assets or exposure, as well as owning traded options in platinum.

See also Alternative investment – Investments other than stocks, bonds and cash Diamonds as an investment Gold as an investment – Use of gold as a store of value and investment asset Inflation hedge – Investment intended to protect an investor against inflation or hedge List of bullion coins London Platinum and Palladium Market Palladium as an investment Silver as an investment – Investment in the precious metal silver

References

External links Information about Platinum as a commodity from New York Mercantile Exchange London Platinum and Palladium Market Archived 2008-06-23 at the Wayback Machine

Illustrations

Worked examples

Example 1 — a first encounter with Platinum as an investment

Start with the simplest possible case. Write down what Platinum as an investment claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Platinum as an investment before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Platinum as an investment ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Platinum as an investment

In research: Platinum as an investment appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Platinum as an investment in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Platinum as an investment is common in secondary-school and first-year university syllabi. It links to neighbouring topics Commodities used as an investment, Platinum, Precious metals, so understanding it makes those chapters shorter.
In everyday life: Look for Platinum as an investment outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Platinum as an investment in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Platinum as an investment means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Platinum as an investment out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Platinum as an investment in simple terms?

Why does Platinum as an investment matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Platinum as an investment?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Platinum as an investment.