Considering how both gold and silver are not in a prime position price-wise, other precious metals become more appealing. Platinum is one of those metals that tends to get overlooked more often than not. But how does one invest in this asset?
The Normal Way: Through a Broker
Investing in platinum and other precious metals can be done in a variety of ways. One obvious option is to opt for trading through a reputable broker. This option offers many advantages, including being able to long and short market positions to optimize potential profits.
Using a CFD has a significant convenience factor compared to some of the other options on the list. At the same time, it ensures that no one can effectively own the platinum they invest in, which may not be ideal either. For most novice investors, it adds a positive aspect, but for advanced traders, this may not be ideal.
Finding a broker allowing for platinum trading is not that difficult either. It can be done online through numerous reputable companies. Every provider has their own advantages and drawbacks, however.
Platinum ETFs are a Good Option
Almost all of the valuable assets are accessible through Exchange Traded Funds, or ETFs. For platinum traders, there are quite a few options to check out in this regard. Every ETF is designed to follow the spot market price as closely as possible. However, it may be worthwhile to choose an ETF denominated in one’s native currency.
Speaking of which, there are platinum ETFs denominated in Euro, as well as other currencies. It is also worth exploring digital versus physical options. In the latter’s case, investors will invest in the actual commodity, which is held as physical reserves by the provider.
Buying Shares From Companies
The last option worth looking into is investing indirectly. Similar to gold and silver, it is possible to invest in companies engaged in extracting or processing platinum. While such companies are a bit more difficult to come by, there are quite a few options on the table.
Investing in platinum indirectly is also a bit riskier. These companies face a lot of financial pressure regardless of platinum’s market momentum. Trying to look for new firms may be a worthwhile option, as they may have more room for future value appreciation.