What exactly is Platinum?

What exactly is Platinum?

We are often asked about gold and silver. Seldom are we asked about platinum. We thought it might be helpful for the discerning investor to learn more about platinum and how you can purchase platinum in the same manner as gold or silver.

Let’s start with the Spot Price. A good information source for Platinum’s world Spot Price including historical price charts is Kitco’s Historical Platinum Charts.

Platinum (Periodic Table Atomic Number 78); has some unique characteristics worth considering. There are many industry and scientific web sites that detail supply, demand and industrial usage. Among those we found most informative are: The U.S. Geological Service and The Royal Chemical Society’s Periodical Table site.

Recapping the above here are some of the main takeaways:

Industrial Uses:

• Catalytic Converters account for 50% of Platinum demand each year.
• As a catalyst in the partial oxidation of ammonia to produce nitric oxide (used for fertilizers and explosives), silicone and benzene.
• As a catalyst to improve fuel cell efficiency.
• Used in low-voltage, low-energy contacts, circuits and electrodes.

Supply:

• 70% of current production is from South Africa.
• Russia (12%) and Zimbabwe (8%) are the other primary producers.
• The US has two mines primarily dedicated to platinum near Stillwater and East Bolder, Montana.
• Platinum can be both the primary target of a mine or the byproduct of mining for other metals such as copper and nickel.

Price History:

• Charts comparing past platinum prices to other investments can be viewed at Kitco’s Historical Platinum Charts

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