Platinum Bullion FAQ:
Learn Why Platinum is a Good Investment
Why invest in platinum?
Platinum is often overlooked as an investment, but it offers significant advantages in a precious metals IRA. Because platinum is utilized so highly by the automotive industry and because the the automotive industry is on the rise, platinum mining is expected to increase; however, platinum supply is more limited than its gold and silver siblings. This will cause spot prices for platinum to increase and will afford investors of the shiny metal a nice return.
Additionally, a diversified retirement portfolio is recognized as the safest way to mitigate fluctuations in the economy. Diversifying your portfolio is essential to minimize risk when investing. Because metals react to changing economic, political, and social trends, a diversified portfolio provides greater protection against inflation.
How should I invest in platinum?
There are several ways to invest in platinum. Among the best options are:
Learn the answers to frequently asked questions about Spot Price
What does “spot price” mean?
Spot price is the current market value of a commodity, as reported by COMEX in New York; it is constantly changing because many factors combine to determine its value in the market. Precious metals have a history of retaining their value, offering investors profitable returns, and providing a hedge against inflation, and spot price will help you determine the value of platinum bullion in your retirement portfolio.
What influences spot price?
Spot price is affected by domestic and global events. Economic, political, social, and environmental factors are among the many influences that contribute to spot price.
- As a rare precious metal, platinum’s spot price is greatly affected by supply and demand. The greater the availability, the lower spot price will be. The higher the demand, the higher spot price will be. More than 50% of the world’s platinum supply is utilized by the automotive industry; therefore, developments in automobiles have a great influence on platinum spot price
- Political factors, such as elections, have an influence on spot price; uncertainty on fiscal policies of candidates drive investors to the safety of precious metals like platinum
- Social factors, such as fashion trends, may increase the demand and desirability of wearable platinum.
- Environmental factors like natural disasters that prohibit or delay mining can greatly affect the supply and spot price of platinum
Why is spot price important?
The spot price of a commodity lets you know the value of that particular asset in real time. It will help you identify the best times to buy and sell. Additionally, knowing the spot price will help you identify the best deal; the final price you pay for an item is the spot price + the dealer’s premium. Taking advantage of the lowest premiums will maximize your buying power and give you the most metal for your dollar.
What currency is spot price quoted?
While Provident Metals quotes spot price in US dollars (USD), though spot price is quoted in a variety of currencies throughout the globe.
How often does spot price change?
Spot price is an ever changing number, affected by a myriad of circumstances worldwide. Provident Metals keeps an updated price list at all times on our website, so you always know the current rate of bullion before placing an order.
When is spot price set for my order?
Because spot price is fluctuating constantly, it is important to be aware of the spot price when making an order online. At ProvidentMetals.com, you will be given a total purchase price during the “Place My Order” section of the checkout process. At this time, you will have 2 minutes to confirm your order before it is subject to any changes in spot price.
Will a changing spot price affect my order total once it’s complete?
No; when you place your order, you will receive a confirmation email with the final details of the order. Spot price was locked in at the time of your purchase and will not change. Your locked in price will be included in your confirmation email.
How does Provident Metals determine spot price?
Provident Metals plays no role in determining spot price. The market determines the spot price which all dealers worldwide utilize. Provident Metals only determines premiums on bullion products.
What unit of measurement does spot price use?
Spot price is quoted in troy ounces.
Learn about the platinum buying process?
What is “ask price?”
Ask price is the price at which a dealer will sell bullion. It is used in conjunction with the spot price.
What is “bid price?”
Bid price is the price at which a buyer will purchase bullion. It is used in conjunction with the spot price.
What is a “premium,” and why do I have to pay it?
After spot price, each dealer will add a premium to their bullion; the premium is largely determined by overhead costs, such as labor, development, and carrying costs. Because Provident Metals functions as an online retailer, our overhead is lower than many local stores and allows our premiums to stay among the lowest in the industry.
How many grams are in a troy ounce of platinum?
1 troy ounce = 31.10 grams
How many ounces are in a kilogram of platinum?
1 kilogram = 32.15 troy ounces
When is the best time to buy platinum?
Like any other investment, you want to purchase platinum when your risk is low.
Platinum, like its sister precious metals, has a history of fluctuation in value in the marketplace. Watching the market and studying trends may help you make the right decision.
What is the difference between a private mint and a sovereign mint?
A sovereign mint is government owned and operated and creates bullion that not only qualifies as legal tender, but it is guaranteed by the government of the country in which it is created. A private mint is individually owned and operated and produces bullion products to meet investor and collector needs.
What is the benefit of privately minted bullion?
Privately minted bullion does not function as currency, but carries a much lower premium. Privately minted bullion allows the savvy investor to maximize buying power.
What is the benefit of sovereign bullion?
Sovereign bullion is legal tender with quality, weight, and purity that is guaranteed by a sovereign government, making it an ideal addition to your precious metals IRA.
Does the face value of sovereign bullion affect its worth?
Yes and no; the face value is relative to the amount of platinum in a coin and indicates a sovereign government backing of the coin. However, the value of a sovereign coin has an intrinsic value based on the metal, which is generally higher than the face value of the coin.
Do I pay tax on physical platinum?
If you purchase platinum online from Provident Metals, you will not be charged sales tax because tax is not required in Texas where the Provident Metals headquarters is located.
Other platinum bullion questions:
What is a precious metals IRA?
A precious metals IRA is an Individual Retirement Account consisting of precious metal bullion- gold, silver, and platinum. Provident Metals works with many IRA custodians to help you determine which bullion products meet the requirements to diversify your portfolio.
Is it safe to purchase bullion from an online dealer?
It is safe to purchase bullion online at ProvidentMetals.com. While we do not speak to the reliability of all online retailers, we can provide reviews from thousands of satisfied customers who continue to invest and collect through Provident.
Which platinum products have the lowest premium?
As with other bullion, https://www.providentmetals.com/platinum/pamp-suisse-platinum.htmlpampprivately minted platinum bars will carry the lowest premium. Private bullion bars are great investments due to their affordability and convenient stackability.
Why do platinum prices fluctuate more than gold or silver?
Platinum is far more rare than gold; as such, factors affecting the mining process of precious metals will have a much more significant influence on the price of platinum than gold. Estimates indicate the world supply of platinum is between 6-20% of the gold supply; this substantial difference causes platinum prices to experience more volatility.
