Platinum Fact Sheet
All the Facts You Need to Know about Platinum Coins.
Platinum has unique chemical and physical properties that make it essential in a wide range of industrial and environmental applications. And yet, it is also considered one of the finest of all jewelry metals. Over 20% of all consumer goods either contain platinum or are produced using platinum.
As a consequence, the continued expansion of advanced and developing economies has caused demand for the metal to grow at a faster pace than it is being mined.
Platinum is a Truly "Precious Metal"
Platinum is the rarest of the precious metals. Roughly 90% of all platinum supplies come from South Africa and Russia. Virtually all of the platinum mined in South Africa is pre-sold to industrial users. Approximately 8 - 10 tons of raw ore must be mined to produce just one pure ounce of platinum. Today, the finest and most elegant jewelry contains platinum. Investment platinum is available in the form of
Platinum is a multi-Purpose Industrial Metal:
Platinum is integral to the production of about 20% of all consumer goods. Platinum's unique physical properties make many industries dependent upon its use. Gasoline, hard disk drives, anti-cancer drugs, fiver-optic cables, LCD display, eyeglasses, fertilizers, explosives, paints and pacemakers all rely on platinum. Platinum is also the key catalyst used in fuel cells.
Japanese consumers buy approximately 48% of the world's platinum jewelry each year. Demand for platinum in high technology applications is soaring due to its unique properties: It is virtually impervious to corrosion, has a melting point in alloy of 3,215 degrees Fahrenheit, is a powerful catalyzing agent and is highly conductive.
It is an Environmental Metal:
Over one-third of all platinum supplied to the international markets each year is used in catalytic converters to control harmful automobile emission. Higher North American, European, and Asian automobile emission standards continue to add pressure to auto manufacturers to increase the use of platinum in catalytic converters and devices like oxygen sensors.
Platinum catalysts are a core component for fuel cells, a power generation technology that combines oxygen and hydrogen to form water and electricity. Fuel cells are poised to become the environmentally friendly power generation source of choice in the next century, and a key source of future platinum demand.
Platinum, The White Wave in Jewelry:
The rise in popularity of platinum jewelry over the past two decades has been remarkable, Japan has long been a traditional source of platinum jewelry demand, but double digit growth rates over the past several years in both China and North America now make these two markets highly important. Combined, they count for over 40% of world total platinum jewelry demand. Platinum is prized the world over for its understated elegance and its tensile strength, making it the most secure precious metal for setting precious stones.
Platinum is the Premium Investment Metal:
Platinum is known as "high-octane gold," for its stronger price moves and prospects for a higher upside. Buying platinum is an easy way to invest in worldwide economic growth because the metal is essential to the economies of many industrialized nations. Pure platinum legal tender bullion coins provide a liquid, convenient and reliable way to invest. The Platinum American Eagles are a great example of precious metal platinum coins.
All coins are 99.95% pure and are available in one-ounce and fractional sizes. Investment-grade bars are also available in 10-ounce and smaller sizes from various refiners.
Platinum Proof coins offer a way for investors to both participate in the platinum commodity market and to realize the benefits of owning a collectible coin. Platinum American Eagle proofs for instance have sold out annually, and to this day command a premium over the initial sale price in the secondary market.
In the past, only Gold Eagles and Silver Eagles qualified for IRA accounts. Recent legislation expanded the rules regarding Individual Retirement Accounts, beginning on January 1st of 1998. For the first time, platinum is now eligible for inclusion in IRA portfolios, not only through the Platinum American Eagle bullion coins but through Australian Koalas and Canadian Platinum Maple Leafs. Investment is permitted in both coins and bullion of platinum, provided it meets stringent fineness requirements. These requirements are that the product be, essentially, 100% pure precious metal. The IRA trustee or custodian who stores and accounts for the precious metal, may have further restrictions.
Why is the demand for platinum expected to remain strong during the rest of the decade?
New clean air legislation in the United States and in many of the world's fastest growing economies is significantly increasing the total amount of platinum used in automobiles. Platinum is essential for the wide range of products that are being consumed in nations that are experiencing rapid gains in incomes. Because of this, world platinum use per unit of world economic output has risen rapidly in the past decade.
Platinum jewelry has gone from being a thing of the art deco past to being all the rage in North America and China. The largest economy in the world and the largest country in the world are seeing tremendous growth in platinum jewelry demand. This is in addition to Japan's relatively stable consumption of the white metal for jewelry purposes. While growth has been strong, overall market share is still low - meaning that these trends of increasing demand are sustainable for some time to come.
Investment demand by individuals around the world is rising. Many are attracted to the vastly improving fundamentals in the platinum market. In rising markets, platinum normally develops a significant premium over gold. Platinum has historically tended to be more expensive than gold because it is considerably rarer and has more extensive and irreplaceable applications.
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