Platinum is a rare precious metal used in jewelry, electronics, and scientific equipment. As platinum supplies remain low and demand high, platinum prices will likely remain volatile. If you’ve read our guides on gold prices and silver prices, you may have an idea of the main platinum price drivers we discuss here. Most mining for platinum happens deep underground and the ores are extracted with heavy machinery.
What Currencies Is Platinum Quoted In?
Although platinum will not always move with gold and silver, it often does as investors look to buy precious metals or sell precious metals. Of course, mining issues or other factors could potentially cause the price of platinum to move significantly different than the prices of gold or silver. In addition, platinum has different industrial uses that may affect prices. No, as mentioned previously, the dealer will use the spot platinum price as a guide.
Buying & Selling
When one buys an American Platinum Eagle, for example, the value of the coin may go up based on rising platinum prices, but it can also go up on rising coin premiums. The bottom line is, if one is looking to acquire platinum or precious metals, then paying dealer premiums is part of the equation that must be considered. To the right are live platinum spot prices per troy ounce, gram, and kilogram. All platinum bars, rounds and coins have a premium that is a fixed amount of percentage above the spot price.
Platinum Prices Per Ounce, Gram & Kilo
The live spot price of platinum is continuously moving according to market conditions, supply and demand, and many other variables. Similar to silver’s spot price, platinum’s could also refer to the total percent change of the spot price, comparative to the price at the start of that day. Platinum is a natural resource that must be mined, and any stoppages in mining can potentially cause supply shortages that in turn may drive prices higher. In addition, mining companies may adjust their operations based on profitability and current platinum price levels. There are many differences between brick and mortar coin shops and online bullion dealers.
Regardless of where you live, you want the live platinum spot price calculated in your currency so it’s easy to determine the value of your investments. APMEX’s platinum calculator is perfect for anyone who needs to determine the spot price in any number of currencies, quantities, units of measure, and purities before developing investment strategies. Use the platinum calculator to find the full value of your platinum and make the most of the precious metals in your home. The spot price of platinum is the price you would pay for one ounce of platinum on any given day. Measured in troy ounces, the value of platinum is determined in comparison to its metal content. The price of platinum could go lower just as easily as it could go higher.
- Since electric cars don’t need catalytic converters, one of the key components of vehicles that require platinum, there’s a continuous drop in demand.
- In addition, mining companies may adjust their operations based on profitability and current platinum price levels.
- For the past several years, platinum has traded between $800 and $1200 per ounce.
- For questions about the eligibility of your platinum products and your specific investment portfolio, please consult your financial advisor.
- There are many differences between brick and mortar coin shops and online bullion dealers.
Other Platinum Price FAQ
Like standard IRAs, earnings on your platinum investment can be tax deferred if proceeds are transferred to another IRA account or kept with your reinvestment custodian. For questions about the eligibility of your platinum products and your specific investment portfolio, please consult your financial advisor. Platinum bullion refers to a product valued by and sold mostly for its platinum content, not containing any collectible or numismatic value. Platinum bullion often appears in the form of bars, rounds, and sovereign coins that a government backs.These products are mostly categorized as either .999 or .9999 fine platinum bullion.
Platinum futures primarily trade on the NYMEX with a lot size of 50 troy ounces. It’s important to understand the foundations of how to read platinum prices. The reality of electric vehicles is they have too many downsides and physical limitations to completely replace our existing infrastructure. However, FCEVs (fuel cell electric vehicles) that are powered by hydrogen, may be a replacement technology for the traditional ICE vehicle.
It is wise to treat any offer for platinum bullion priced below spot value with suspicion. In summary, while the COMEX does provide a platform for platinum futures trading, its influence on platinum prices is generally considered secondary to the LPPM and NYMEX. The LPPM’s benchmark price and the NYMEX’s platinum futures contracts are often more closely watched by market participants for price discovery and risk management in the platinum market. Platinum is a less actively traded metal on the COMEX compared to gold and silver. The dealer will take into account current spot prices, as well as their cost on the coin or bullion, and then apply their markup. For some products, margins are razor-thin while for other products the dealer stands to make a larger profit.
Commodities are obviously very widely traded vehicles for end users, financial institutions and banks, as well as retail investors. With the pace of economic activity and commerce in modern society, it is important that market participants have access to markets in where they have financial interests or price risk exposure. A good example of how the market and technology impacts platinum prices, is transportation. Electric cars are replacing diesel and petrol-powered vehicles in many parts of the world.
When you browse the website of international bullion dealers, common currencies to display live platinum prices may include USD, EUR, JPY, CNY, AUD, and similar leading domestic currencies. The spot price of platinum simply represents the price at which the metal can be purchased or sold at the present time. It is the current monetary value of a specific weight unit(s) of platinum, typically ounces.
The general rule is the smaller the bid-ask spread is, the more liquid the asset is. Should environment-friendly precious metal mining regulations be enacted, we could see a hike in platinum prices. Some platinum advocates are concerned the EV (electric vehicle) market will reduce long term demand for platinum as EVs don’t have any need for catalytic converters. A single fast charger would require 40 acres of solar panels on a sunny day to full charge an EV. Most recently, auto manufacturers have curbed their forecasts and cut the size of future investments to match market demand. Yes, many investors invest their platinum in a precious metals IRA.
Toyota has long bet on this technology, maintaining a hydrogen car called the Mirai, though they have not promoted it heavily in recent years. Fleet vehicles are leading the adoption of FCEVs as they require no charging, refuel in minutes instead of hours, and provide some built-in unit economics for refueling infrastructure. The infrastructure to power a hydrogen-based auto industry also uses platinum.
Once you have identified a seller, prepare a way to store your platinum securely. Storing your platinum with a secure third party such as Citadel – a subsidiary of APMEX – is available for a small fee or you can store your platinum in a safe or lockbox at home.
These checkout cart prices are frozen for 10 minutes while you complete the checkout process. If you take longer than 10 minutes to complete the checkout process, you will have the option to approve the new, updated prices to finalize your order. Attacks on ships passing through a vital trading route have reignited fears about higher oil prices and could drive up inflation. It has a far more influential degree of practical use and there’s less of it. The metal is actually scarcer than gold and is more desirable industrially due to its anti-corrosive, yet shapeable properties. Next, research and find a trustworthy seller of good standing before purchasing.
The spot price represents the current market value of one troy ounce of platinum for immediate delivery. Factors influencing platinum prices include industrial demand for applications such as catalytic converters in automobiles, jewelry demand, economic indicators, geopolitical events, and mining production. The prices are set through trading on various commodity exchanges, with fluctuations influenced by real-time market conditions and investor sentiment. Platinum has not had the same amazing growth story that other assets have had, notably declining where gold and silver have flourished. In 2008, platinum spot prices sharply rose and maintained over $2100 per troy ounce, marking an all time high in March at $2290 per troy ounce. This coincided with the collapse of Bear Stearns, though prices had increased steadily since 2001.
Machines play a key part in processing and refining the platinum that we see on the market as consumers, or as part of some everyday tools like cars, buses, jewelry, and more. Platinum does not carry such fashion and store-of-value reputation as gold does. Partially as a result of these psychological biases, the price of gold is almost twice as high as that of platinum. The pharmaceutical industry also uses platinum in many drugs, though this is also a demand source that can fluctuate with increased interest in natural remedies. Once you advance to Checkout, your prices are locked in and displayed on the right side of the checkout form.
Platinum demand is primarily industrial, while gold’s primary demand is driven by its utility as a financial instrument. While the two metals tend to move together directionally, the fiscal environment over the past ten years has heavily favored the yellow metal. Platinum prices can exhibit volatility just as any other commodity can. In addition, stocks can exhibit a large degree of volatility at times, as well. Price volatility can be important but may not be as big of a factor for someone buying physical platinum products that are not leveraged with the intention of holding them as long term investments.