How Platinum Can Diversify an Economic Portfolio and Hedge Against Inflation

Platinum is a chemical element and member of the platinum group of elements. Most metals in the platinum group are prized for resilience to corrosion and relative imperviousness to high temperatures. In fact, platinum is regarded as a noble metal due to its resistance to oxidation and corrosion.

Noble Metals and Base Metals
Palladium, platinum and gold are all noble metals and generally resistant to aging. Base metals like zinc and iron, on the contrary, do not age very well. Nobel metals are popular for other reasons, however. Platinum has numerous industrial applications and aesthetic uses. For example, platinum is used predominately in the catalytic convertors of automobiles, yet platinum is making inroads into jewelry stores, the dentist’s office, thermometers and even the hands of collectors.

Platinum as Precious Metal
A precious metal is a metallic element of high economic worth. Precious metals, such as platinum, are often ductile and contain a rich lustre. In the past, precious metals took the place of fiat paper in large economies. Today, however, precious metals like gold, silver and platinum are viewed as investments and hedges against unstable local currencies. Platinum is actually the most widely transacted precious metal in the world. In other words, investors have determined that platinum is a worthwhile store of value and investment opportunity.
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How Platinum Can Diversify an Economic Portfolio and Hedge Against Inflation
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Precious Metals Investing: What to Know and What to Expect

For the past half-decade, most people have built a word association between “investing” and “pain.” The U.S. stock market has been northing short of unstable, employment levels have only slightly improved, and the housing market continues to be a source of major uncertainty and financial pain among those who decided to invest their money in property rather than in things like precious metals or rare coins. It is worth noting, though, that those who did choose to make investments in precious metals are among the most satisfied investors in today’s climate.

The reason for that satisfaction is simple: While the broader stock market has suffered from downturn after downturn, the market for precious metals has been soaring to new heights and setting entirely new records. Gold, in particular, has been a darling of the market for the past decade or so. It has been joined in recent years by the likes of platinum, palladium, and especially silver, making precious metals an even better investment strategy.

Before pursuing precious metals as a new option in a portfolio, though, consumers should understand that the market does fluctuate and that certain conditions at the Federal Reserve might impact the overall performance of gold, silver, platinum, and other precious metals. By understanding the future outlook of this investment, as well as the factors that determine its worth, a more sound strategy can be pursued at the very beginning. Continue reading

Precious Metals Investing: What to Know and What to Expect
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