When it comes to investing in platinum bullion what are your options and which forms do most investors prefer? There are many ways that you can buy this precious metal, and also methods that allow you to inst capital without having to take possession of any items and products in the process. A quick search will show that you can purchase bars, coins, mutual funds, ETFs, ETNs, stocks, bonds, and other vehicles in this sector. Each pick can be right in some cases but a big mistake in others so you have to use due diligence when evaluating different options.
For those who want to own the ore there are several forms and brands that can be chosen. Bars can be found as small as a gram, and as large as hundreds of ounces. These are usually considered the lowest premium form of the material and the least expensive. Smaller weight pieces will have a higher mark up and be more expensive than the largest bars will, and many merchants offer a discount rate for larger transactions.
Coins are usually thought to have a higher premium than bar products but this is not always true. The platinum eagle coin offered by the United States Mint was designed to be cost effective for investors. Each piece is backed by the US government and produced according to very strict standards and specifications. They can usually be found for a very low amount over spot price and they are quickly recognizable as a valuable item. They are also very liquid and they can be bought and sold on all of the major markets around the world.
What if you do not want to worry about storing and securing precious metals though? In this situation a number of individuals will choose stocks, mutual funds, and other choices that are similar. A mutual fund can give you many holdings with a single capital investment, and when ETFs are used shares can be traded any time the market is open. These funds offer additional benefits but also unique risks as well. ETNS are exchange traded notes, and you can also find bonds that are backed by platinum as well.
Mining stocks are also a popular vehicle because they tend to follow the price of the ore. If these are used as a vehicle then it is important to closely research and evaluate the company behind the stock shares. There is no guarantee that an increase in precious metal prices will mean a better return if you do not choose the business used very carefully. Look at the key employees as well as the financial data.
For those who want to own the ore there are several forms and brands that can be chosen. Bars can be found as small as a gram, and as large as hundreds of ounces. These are usually considered the lowest premium form of the material and the least expensive. Smaller weight pieces will have a higher mark up and be more expensive than the largest bars will, and many merchants offer a discount rate for larger transactions.
Coins are usually thought to have a higher premium than bar products but this is not always true. The platinum eagle coin offered by the United States Mint was designed to be cost effective for investors. Each piece is backed by the US government and produced according to very strict standards and specifications. They can usually be found for a very low amount over spot price and they are quickly recognizable as a valuable item. They are also very liquid and they can be bought and sold on all of the major markets around the world.
What if you do not want to worry about storing and securing precious metals though? In this situation a number of individuals will choose stocks, mutual funds, and other choices that are similar. A mutual fund can give you many holdings with a single capital investment, and when ETFs are used shares can be traded any time the market is open. These funds offer additional benefits but also unique risks as well. ETNS are exchange traded notes, and you can also find bonds that are backed by platinum as well.
Mining stocks are also a popular vehicle because they tend to follow the price of the ore. If these are used as a vehicle then it is important to closely research and evaluate the company behind the stock shares. There is no guarantee that an increase in precious metal prices will mean a better return if you do not choose the business used very carefully. Look at the key employees as well as the financial data.