Unlike gold and silver, which have been used as goods and money for centuries, platinum is a newcomer that is just beginning to gain popularity. This is because platinum was almost impossible to recycle until advanced melting technologies were invented. This happened in the early 19th century. Only then could it be used for money and for industrial purposes.
Today, platinum, in addition to a variety of industrial uses, is sold in the form of platinum coins and platinum ingots. Government mints around the world, from Canada to Australia and the United States, produce platinum coins.
Like palladium metal, which is often found in nature in a mixture with platinum in mining, platinum is subject to large price fluctuations up and down due to its many industrial needs. For example, if industrial demand falls, then the price of platinum also falls.
However, the variety of industrial uses helps protect against rapid volatile fluctuations in platinum prices. Platinum is used in jewelry production and, most importantly, in catalytic converters; As environmental problems begin to penetrate developing countries, the popularity of catalysts is growing rapidly. This provides perpetual and growing demand for platinum, putting upward pressure on prices.
The basics of platinum prices are relatively reasonable, especially when compared to the steadily declining value of currencies that are not linked to any commodities. The main reason why platinum has historically worked well is that its supply is very limited. Only two regions in the world, one in Russia and the other in South Africa, produce almost the entire annual supply of platinum. It is assumed that even these huge mining cases barely keep up with the annual demand. This dynamic puts pressure on the growth of platinum coins and platinum ingots.
However, platinum still retains its value over time, especially compared to devalued and inflatable currencies such as the pound sterling, the euro and the US dollar. As a result, many investors have made the choice of dam a choice in their diverse investment portfolios. It functions primarily as a hedge against inflation, maintaining a high value due to industrial demand. In the current economic climate, when central banks and world governments are producing inflation, now more than ever, platinum is a bright star for those seeking to preserve their wealth in these times of economic uncertainty. As long as governments continue to print money to try to save the economy, the dam should appreciate. For more information on the dam, check out BullionUK.com.