The advantages of buying platinum coins

In this blog post, we will introduce you to the advantages of buying platinum or platinum coins.

The value of platinum

Originally, the value of platinum was higher than that of gold. The price development of platinum over the last 50 years shows that this has traded higher than gold. However, this is no longer the case today.

If you put gold and platinum in the ratio, you can see how much platinum they need to sell gold. You can see the relative strength of the price of gold compared to the price of platinum. Professionals and investors use the timing indicator ratio to decide which of the two precious metals to invest in. Due to the fact that in the past platinum was traded at a higher price than gold, this has become one of the special metals. This is mainly due to two things: Platinum is rarer than gold and it has more industrial uses.

Platinum supply and demand

According to the World Platinum Investment Council’s Platinum Quarterly in the third quarter of 2020, demand for platinum currently exceeds supply. This is mainly due to demand in the automotive industry. This is because it is higher than ever. The purchase of platinum continues to rise.

Platinum is used in the automotive industry as an important component of the catalytic converter, which helps to reduce the toxicity of exhaust gases. Platinum is also used to make jewelry, in chemical production, in petroleum refining, and for electrical applications such as hard drives. About one-third of the platinum mined each year is used to make jewelry in the more expensive range. Platinum is also needed for electrodes for medical devices and turbine engines.

Platinum production declined in 2020, according to preliminary data from the U.S. Geological Survey (USGS). In fact, this has decreased by 9% compared to the year 2019. In 2020, one hundred and seventy thousand kilograms of platinum were produced. The decline in platinum production, according to the USGS, was due to temporary closures in South Africa related to the COVID-19 pandemic.

Portfolio diversification

One of the main reasons why coin enthusiasts and collectors consider buying platinum coins is that it helps balance and enhance their portfolio. Some investors trust a purchase of gold or silver because they are familiar with it and thus feel more comfortable making a purchase. But the market for platinum also holds some treasures just waiting to be bought by them.

Krugerrand Platinum Coins

Krugerrand platinum coins are a very popular investment option for those who want to diversify their portfolio with precious metals. The Krugerrand is a world-renowned South African gold coin, but the platinum version is becoming increasingly popular due to its unique features and benefits.

Features of Krugerrand platinum coins

Platinum Krugerrand coins are minted by the South African Mint ( RareCoin Online Shop = SA Mint) and consist of 1 ounce of 99.95% pure platinum. The coin features a portrait of Paul Kruger, former president of South Africa, on the obverse and a springbok, a national symbol of South Africa, on the reverse. The coin has a diameter of 32.77 mm and a thickness of 2.84 mm. It is legal tender and has a face value of R50, the South African currency.

One of the peculiarities of the Krugerrand platinum coins is that they are the first platinum bullion coins in the world. The coin was introduced in 2017 following the success of the gold Krugerrand and silver Krugerrand. The platinum Krugerrand coin quickly became a popular choice among investors and coin collectors due to its rarity, high purity and the historical significance of the Krugerrand brand.

History of the Krugerrand platinum coins

The Krugerrand brand was first introduced by the South African Mint in 1967. It was originally created to market the country’s abundant gold reserves and promote gold ownership by private individuals. The Krugerrand quickly became popular around the world and was the best-selling gold bullion coin in the world in the 1970s and 1980s.

The success of the Krugerrand brand led to the launch of the silver Krugerrand in 2017 and the platinum Krugerrand in the same year. The platinum Krugerrand was introduced to meet the growing demand for platinum bullion coins and to expand the Krugerrand brand.

Why Krugerrand platinum coins are so popular

Krugerrand platinum coins have become increasingly popular with investors for several reasons. First, they are highly sought after by collectors for their rarity and historical significance. The Krugerrand brand is one of the most recognized and trusted brands in the gold bullion industry, making it a highly sought-after collectible.

Second, Krugerrand platinum coins are an excellent investment opportunity for those who want to diversify their portfolio. Platinum is a very valuable and rare metal that is used in a wide range of industrial applications, including the automotive and electronics industries. This makes it an extremely valuable metal for one’s investment portfolio.

Finally, Krugerrand platinum coins provide a hedge against inflation and currency fluctuations. Like other precious metals, platinum retains its value over the long term, making it a safe investment option in times of economic uncertainty.

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Are you interested in expanding your portfolio of rare and popular precious metals? Feel free to browse through the RareCoin Online Shop . With us you can find quite rare coins, which you will not find on the normal trade. Also a purchase of platinum is possible with us. Feel free to contact us!