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Investing In Platinum

On the agenda economic fluctuations, uncertain pensions, rising prices – in today’s world, it goes without saying that the desire for safe investments is constantly growing. In addition to real estate and the purchase of gold and silver, another commodity is not always immediately considered: platinum. However, as is so often the case, there are a few points to consider when thinking about buying platinum.

A safe investment?

In most cases, potential investors do not have to search long if they want to buy platinum. Numerous options are available, some of which even go beyond physical ownership. Basically, the raw material can be acquired in quite different ways – no matter whether as coin, bar or jewelry. Furthermore, securities can be included in the shortlist, as trading with platinum offers manifold opportunities. If the prices are right, it pays off quickly to want to buy platinum. As with all other investments, however, an absolute profit can rarely be promised. Fluctuations let the market become a game of luck from time to time. The more details and information are collected and considered, the more likely a good selling price can be expected in the end.

Why buy platinum?

Asset protection is an important aspect for many investors that motivates them to buy platinum in the first place. While the value of paper and book money can quickly decay, investing in the commodity is much more lucrative. This is due not least to the simple fact that platinum supplies are by no means unlimited. Customers who buy platinum are relying on a large demand that will continue to grow in the coming months and years. It is not surprising that numerous financial experts advise investing up to 10 percent of the money saved in the form of precious metals. It is not uncommon for investors to continuously increase their stockpile in order to be able to look to the future in the best possible way. However, it should never be forgotten that the market can change daily. Under certain circumstances, even personal platinum holdings can become worthless. Constant analyses are absolutely necessary in order not to experience any unpleasant surprises and, if necessary, to sell the stocks at an early stage.

Buying platinum made easy

The purchase of platinum in the form of bars or coins is possible at banks or certain precious metal and coin dealers. It should be noted, however, that VAT is payable on quotations. Further costs could arise from the deposits at the bank itself, whereby the prices for a safe deposit box vary greatly. Less costly is trading in securities, which in turn, however, entail stock exchange fees. A search on the Internet reveals in a few seconds numerous online stores that are exclusively dedicated to trading in gold, silver and platinum. It helps to find out in advance about the seriousness and security of the provider in order to pay the right price when buying.

Although platinum has only really become known in recent years – especially in the jewelry industry – it is actually very old: it was first mentioned in history by Julius Caesar Scaliger, who described a miraculous white metal that simply could not be melted down.

It has been proven that the ancient Egyptians already used this white metal – and Indian peoples in South America also used it. They were looking for wash gold, but instead found tiny particles of platinum. Later, blacksmiths used small grains of platinum to fuse them together with gold. Since the resulting metal could not be remelted due to the platinum content, it did not tarnish. It had a light, grayish color. However, the pure form of platinum known today was far from being known.

A good investment

Nowadays, platinum is used in many different areas, but especially in the jewelry industry as a particularly valuable material, for example for rings. Thus, the price of platinum is about ninety times higher than the price of silver. It is especially popular in higher-quality jewelry. It is more stable or harder than pure gold and thus a particularly versatile element.

What interested parties should know

Numerous companies advertise that they buy platinum at good prices. If owners of platinum themselves are thinking of selling it, it makes sense to first observe the price for it for some time. As a rule, the prices of precious metals rise relatively constantly, but they vary greatly. So not only the sale of platinum, but also the purchase should be well considered. In both cases, however, it is advisable to consult experts before making a trade.

For selling platinum, auction houses are the best option, where you usually pay significantly more than a normal platinum buyer. However, if larger quantities of the precious metal are involved, it is best to forgo the option or insist on having the platinum picked up – shipping always involves a certain risk that should not be taken recklessly. If platinum is to be sold as safely as possible, it is advisable to accept the discount in value and go directly to a local bank branch or bullion dealer, where the money is also paid out locally. This way sellers are on the safe side when selling platinum.

Value added tax when selling platinum

Unlike gold, platinum is subject to VAT within some countries. This should be taken into account when selling platinum, because usually only net prices are given. Afterwards, the value added tax is additionally levied on these prices. It is therefore also worthwhile here to calculate exactly before the sale is made.

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