How to invest in platinum: Buying platinum for beginners in 2024

This guide explains how to invest in platinum. Follow our step-by-step guide to platinum investing, learn the best methods, and discover why platinum might be a top investment in 2024.
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Updated: Mar 21, 2024
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Platinum is an extremely rare precious metal, one that’s highly prized in industrial manufacturing for its durability and conductivity. 

Investing in platinum is a simple process and there are several ways to put your money into this popular commodity. This beginner’s guide takes you through the basics of how to invest in platinum.

How can I invest in platinum?

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There are several options available, ranging from investing in platinum stocks to buying platinum bars or coins. The right approach depends on your personal budget, risk tolerance, and timeline for seeing returns. Here’s a look at the various ways you can invest in platinum online.

Buy platinum stocks 

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A popular way to invest in platinum is to buy shares in companies that are involved in mining, producing, or using platinum in some way. The performance of these stocks is typically correlated to the platinum price.

  • Anglo-American Platinum (JSE:AMS). A South-African based company, Anglo-American is the world’s largest platinum producer and manages platinum production from the mining to the final marketed product.
  • Sibanye Stillwater (NYSE:SBSW). Sibanye is a platinum mining company, also based in South Africa, where it also mines other precious metals such as gold and palladium.
  • Tiffany & Co. (NYSE:TIF). Tiffany & Co is a luxury jeweller, famous for its high-end jewellery, which includes platinum rings.

Invest in platinum ETFs

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Platinum ETFs are funds that track the performance of platinum or the platinum industry in some way. This can mean holding stocks in a number of platinum producers, or it could be an ETF that simply tracks the price of platinum.

  • iShares MSCI Global Metals & Mining Producers ETF (CBOE BZX: PICK). The iShares global metals ETF invests in stocks from companies that are involved in precious metal mining and production, offering a way to invest in the entire precious metals market.
  • Abrdn Standard Physical Platinum Shares ETF (NYSE Arca: PPLT). This ETF tracks the spot price of platinum and is backed by physical platinum, so the fund’s value is relatively stable.
  • iPath Series B Bloomberg Platinum Subindex Total Return ETN (NYSE Arca: PGM). This ETF operates in a similar way to the spot platinum ETF, but instead invests in futures contracts rather than the physical metal. It has lower trading volumes and can be more volatile to invest in.
  • Example 3. Description…

Invest in platinum mutual funds

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Platinum mutual funds are funds that are managed by a specific investment professional or asset manager, rather than tracking a particular index, as ETFs do. These funds often invest in mining stocks, but they may also own a small amount of physical bullion as well.

  • USAA Precious Metals and Minerals Fund (USAGX). This fund is designed as a hedge against inflation risk, with the majority of its money invested in companies that mine or process precious metals.
  • Invesco Gold and Special Minerals Fund (OPGSX). The Invesco fund is designed to increase in value over a long period of time by investing in stocks of precious metal miners. The fund is primarily aimed at gold miners, but also contains a small number of companies invested in precious metals like platinum as well.
  • Allspring Precious Metals Fund (EKWAX). Another fund designed to generate long term capital appreciation by investing in companies whose business is in precious metal exploration, mining, and/or processing.

Buy platinum bars or coins

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Another way to invest in platinum is to buy physical bars, bullion or coins. Platinum coins are rare and expensive, and require a place to store them securely, but offer the most direct way to put your wealth into an asset that’s likely to maintain its value over time.

To buy platinum bullion you need to use a dedicated commodity dealer or broker, which will offer you a selection of options to buy platinum coins or bars. Usually these investments are ordered by weight, with the lightest options catering to those with smaller budgets.

The most important thing when buying physical platinum, however, is to consider how you’re going to store it. Most bullion dealers offer storage solutions, usually in secure vaults that they or a third-party manage. If you plan to hold onto the platinum bars yourself, then the security of your own home is critical.

How to invest in platinum online – a step-by-step guide

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Investing in platinum is a simple process. Before you begin, you’ll need to register with a trusted online broker to access the platinum market. Follow the steps below to learn how to invest in platinum.

Step 1. Open a platinum investment account

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Choose an online broker that offers a way to invest in the platinum market. We recommend Plus500 as the best platinum investing platform. You can invest in a range of platinum stocks, platinum ETFs, and platinum mutual funds.

Step 2. Choose your platinum investment vehicle

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You can invest in platinum using various methods. Most investors prefer to invest in platinum stocks, ETFs, or funds. You can also directly invest in platinum through futures contracts or even physical bars or coins. Our guide below explains more about each option.

Step 3. Make your investment in platinum

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Once you decide how to invest your money into platinum, it’s time to make your investment. To do this, simply log into your online brokerage account and use the search bar to find your chosen investment. For example, if you’re planning to invest in a platinum ETF, just type its name or ticker symbol and you’ll be taken to its trading page.

Fill out your order details on the trading page and hit the buy button. You’ll usually be able to decide how many shares you want to buy if using stocks, ETFs, or funds. Alternatively, you can enter a dollar amount and the brokerage platform will take care of the rest.

Step 4. Monitor your investments

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Regularly review your investment portfolio and its performance. Keep an eye on the platinum price to stay updated with the latest changes. If its price drops, you could use it as an opportunity to add to your investment. If it rises, you may want to consider taking some profit.

Where can I start investing in platinum?

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To invest in platinum, you need to register with a platinum investing platform. These are the best platinum investing platforms, ranked by our team of commodity experts according to their value for money, user experience, and security features.

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1
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eToro offers real assets only, no CFD products. Securities trading offered by eToro USA Securities, Inc. (“the BD”), member of FINRA and SIPC. Cryptocurrency offered by eToro USA LLC (“the MSB”) (NMLS: 1769299) and is not FDIC or SIPC insured. Investing involves risk, and content is provided for educational purposes only, does not imply a recommendation, and is not a guarantee of future performance. Invezz.com is not an affiliate and may be compensated if you access certain products or services offered by the MSB and/or the BD.

3
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Why invest in platinum?

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Platinum has many of the same benefits as other precious metals, like gold and silver, but is also far rarer than those metals. It can be used as an inflation hedge and to diversify your portfolio to spread your risk across different assets.

Alongside its rarity, platinum is extremely durable and so plays an important role in industry. It’s used in automotive manufacturing, where it forms part of catalytic converters, as well as in medicine and other technological components because it is very difficult to destroy.

Of course, platinum is also used in jewellery, where it’s a popular choice in rings and bracelets. The more people have to spend on jewellery, the better for the platinum price.

Is investing in platinum safe?

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Investing in platinum is safe as long as you use a regulated commodity broker or dealer, although there is the risk of losing money, as there is with any other investment. Platinum prices can fluctuate, especially in the short term, based on economic conditions, industrial demand, or geopolitical events.

Platinum is also less liquid than other assets, which means that fewer people buy and sell it on a day-to-day basis. This can make it difficult to sell platinum that you want to get rid of, and can increase volatility in the price.

If you intend to buy platinum bars, then the critical safety consideration is how you’re going to store the metal. Any physical commodity is only as safe as the place you have it stored, so it’s best not to leave it lying around the house!

How much does platinum investing cost?

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There are several ways to invest in platinum, each with its own associated costs. Platinum stocks and ETFs tend to be the least expensive ways to invest, as you can usually pay minimal trading fees to buy and sell these shares.

Buying physical platinum bars or coins can be more expensive, as you need to consider delivery fees and storage costs, which can range into hundreds of dollars for a large amount of metal, as well as the premiums charged by a particular dealer.

How do I store platinum bars?

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When you buy physical platinum one thing you need to consider is how you’ll store it. As it’s a tangible asset of value, you’ll also need to think about insurance. There are several options available to store platinum securely. You can use an online storage service, or keep it at home.

Here’s a look at the various platinum storage options. 

Online storage

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Most reputable online platinum sellers will also offer storage services in a secure vault. Just consider the size of your platinum portfolio first: If your total platinum investing budget is less than $1,000, a significant chunk of that amount (at least $100 per year) would be spent paying the seller to store the platinum for you. 

Online storage is the easiest way to store your platinum. The dealer will take care of everything for you and all you have to do is pay a monthly or yearly fee. You’ll probably never even see or hold your platinum in your own hands if using a third party platinum storage company. 

Home storage

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You can also receive home delivery of platinum, and then find a secure storage space in your home. Some investors feel better knowing that their platinum is always within arm’s length. 

Plus if you plan to hold platinum long-term, you only need to invest in a vault once, rather than pay storage fees year after year. The downside is that your risk of theft goes up if you store such valuables in your home. You’ll also need to buy insurance to protect your investment, adding to your total cost.

Besides insurance, you’ll also need to think about where you’ll store your platinum in your home. You could buy a safe or vault, although this would add to your costs. It’s important to find a safe place within your home to securely store your platinum bars or coins. 

High street brokers

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If you want to store your platinum somewhere that’s not your home but also prefer not to transact online, visit a local High Street broker to talk to a real, live human face-to-face and explain your storage needs. 

High Street brokers will process your platinum purchase, and then take care of storage for you, erasing the hassle and security worries that come with stashing platinum in your home. 

Banks

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Like high street brokers, you may be able to visit your local bank and purchase and store platinum directly with them. Lots of leading banks offer the ability to buy platinum bars and also take care of storage and insurance for you. However, this will come at a cost as you’ll have to pay fees to the bank to keep your platinum bullion secure. 

Quick answers to key questions

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What types of platinum bar are available?

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Platinum bars range from small 1g bars (typically bought in bulk) up to 100g bars. 5g to 50g bars are the most common, and these range in price from a couple of hundred dollars up to over a thousand each.

What weight of platinum bar should I buy?

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Ultimately, that depends on your budget and what you’re buying platinum for. If you have a significant amount to spend, then a platinum bar or bars that you can store in a secure vault might be best. Otherwise, a coin or coins that you can keep at home might be more appropriate.

Platinum is typically priced per ounce, making one-ounce platinum bars and platinum coins a popular choice. Larger platinum bars and platinum coins can also be purchased, but are obviously a lot more expensive.

Does platinum lose its value?

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It can, if there is a decrease in demand or a sudden surge in supply. In general, analysts expect the price to increase over time, as demand for jewellery and industrial applications grows. The metal itself is highly durable and should maintain its desirability over a long period of time.

Is it better to invest in platinum or gold?

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Platinum offers more potential for price growth because it’s more volatile than gold (obviously, the reverse is also true: platinum can fall in value more quickly). Gold is typically more stable and better as a long term store of value.

Bottom line

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If you’re looking for a way to diversify your portfolio, want exposure to precious metals, and understand the risks, platinum could be a valuable addition. Its durability and rarity make it an important commodity in various technologies and manufacturing processes, while also ensuring that it maintains its value over time.

To invest in platinum you can either buy shares in companies that are involved in the industry, invest in a broader platinum ETF or fund, or buy physical platinum coins and bars. Whichever option you choose, you need to sign up for an account with a regulated platinum broker.

Find a platinum broker

FAQs

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Is it hard to sell platinum?
How much will platinum be worth in 10 years?
How can you tell if a platinum bar is real?


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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.