Investing in precious metals has been a financial favorite for a long time. Many investors have put their funds into gold, silver, platinum, and more. However, getting involved with metals often involves jumping through various hoops. One must find a vendor to purchase from, acquire a method of transportation, verify their identity and background, and find a place to store the asset.
Fortunately, if you’re looking to invest in platinum, we can help you avoid such barriers and get involved without buying the metal. There are various solutions, such as Platinum Coin and platinum stocks.
What is Platinum Coin?
Platinum Coin is a stablecoincryptocurrency tied to the value of platinum, the precious metal. It’s a digital asset you can invest in and store in a cryptocurrency wallet. Every Platinum Coin you invest in equals 1/1000th of an ounce of 99.9% pure platinum. That’s right, it’s a fractional amount of platinum. Essentially, this means you can invest in as much or as little platinum as you’d like. It opens up platinum investing to those without tons of funds to do so.
This asset is an ERC-20 token built on the Ethereumblockchain. It’s powered by smart contract technology, meaning purchases, trades, and more are entirely automated. There’s no intermediary to interrupt or mess with your investment.
On top of this, Platinum Coin is entirely private, meaning there’s no need to reveal your identity to invest. You can do so anonymously. All of the asset is stored in your Ethereum wallet. This is ideal for investors focused on security and privacy. It’s also quite in line with the original vision of cryptocurrency – private transactions, of course.
That said,cryptocurrencies are still an unproven system. It’s impossible to tell if this type of technology can take off. Sure, it seems like a great way to invest without worrying about the physical bullion, but who knows if this technology will break into the mainstream?
Don’t let this turn you off of a Platinum Coin investment, but be wary of any negative developments in the industry.
How do Platinum Stocks Work?
Aside from the cryptocurrency, you can also invest in platinum via stocks. While there aren’t direct platinum stocks, you can invest in companies that mine or work heavily with platinum.
For example, one could invest in a platinum mine based in South Africa, one of the only countries with substantial platinum output. In doing so, you would be supporting the mining company, providing them with more runway to keep operating.
However, keep in mind that investing in a mining stock can be quite different from investing in platinum. For one, platinum’s price could go up, but your stock might not. This is because companies are separate from the precious metal.
One mining company might push out a lot of platinum, but get its main revenue from gold. If the group is struggling to acquire gold, its stock price might drop. In that same vein, the company might have to fire employees, or maybe the miners are going on strike.
Similar to the risk with Platinum Coin, it’s entirely possible a mining company can shut down. If that’s the case, your funds are essentially lost. Do some research and look at a mining company’s stock history before investing. Ensure there’s nothing suspicious about them that could give it a negative reputation down the line. You can even invest in multiple platinum mining stocks to diversify.
The point is, there are various things that can happen that aren’t directly tied to platinum’s price. Keep all of this in mind when investing in platinum stocks.
All in all, both Platinum Coin and platinum stocks are a fantastic way to invest in precious metal without actually needing to touch anything physical. In either case, you can sign up in minutes, link a payment method, and have immediate access.
Just remember that all investing is speculative and carries risk, even the two methods mentioned here. There’s never a guaranteed profit. Be careful, and good luck investing!
I am Arjun Kumar. I am the owner and administrator of Finance Gradeup. I have completed my education in Arts & Technology. Arjun Kumar usually has interests in playing games, reading and writing. He was a brilliant student during his college days. He also works for many private companies, but the main interest of Arjun Kumar is digital marketing. He thinks that reading is a must before providing any quality information to his readers. You can find Arjun Kumar on much social media handles online, or you can learn more about him in about us page.