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Platinum - As Investment

The 3rd most widely-known precious metal. Quite rare in the holdings of small investors.

Many refer to platinum as "white gold" - mistake! In reality, white gold is an alloy, a mix containinh gold with one or more grayish metals added (usually silver, but can be palladium, platinum or even the cheaper nickel).

In order to give it a beautiful shine, white gold is plated with rhodium.

Let's see some basic things to know about platinum, before we blindly invest!

Platinum is More Stable Than Gold

Among all precious metals, silver is the most volatile and gold is the most beloved and much more stable. Platinum, on the other hand has a price even more stable than gold's price!

There's a general misconception: "platinum is more expensive than gold". Not necessarily. Not always. Prices vary all the time. In the first half of 2013, we've seen cheaper platinum than gold.

One particular thing that gives stability to platinum investments is the fact that there are no platinum exchange-traded funds (ETF's), while there are in case of gold and silver and thus, have a tremendous influence on gold's and silver's price!

ETF's are often referred to as "paper gold" or "paper silver". Titles, certificates that "behave" like silver on the market and are bought for mere speculation (in order to buy cheap and sell when prices are high). Speculators rarely buy physical metals, therefore are ETF's. It's a bit like a casino-game, really.

When and Why Buy Platinum?

Of course, if you have a lot of funds to invest (certainly more than 10,000 $-worth of assets) and you feel closer to the rich than to the poor, then you should make substantial platinum investments. This metals is more stable and gold. Also rarer and experts are awaiting even higher platinum prices in the long-term.

Otherwise said: platinum is not the ideal choice for the "average poor man". It's a great vehicle to use when diversifying your precious metal holdings.

Make sure you already own enough gold and silver and only then jump into buying investment platinum.

Keep in mind that it's always harder to sell platinum than the other two metals. In richer, more evolved countries and in areas where platinum is more popular, it will be easier to re-sell, but in most parts of the World it will be hard to find a buyer, more so if you're willing to sell for a reasonable price. When there are few buyers available, then the buyer's negotiation position gets stronger - it will be very hard selling at a "high enough" price, as buyers will try to bargain it down.

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