Platinum is a precious metal traded in the forex market, used for jewellery and electronic items. The chemical instrument is symbolised as PT and has atomic number 78. It was introduced by a Spanish general named Antonio de Ulloa in the year 1735. The precious metal is white and looks like silver metal. Primarily produced in South Africa and Russia, platinum is solid and durable metal in comparison to gold.
The rings or jewellery of platinum are preferred over white gold and other elements due to its longevity. Being a valuable item and available in scarcity, platinum is costly. Thus, trading Platinum the precious metal is profitable.
Why Trade Platinum?
Trading precious metals is an essential investment being followed for ages now. For example, gold is the most invested precious metal globally. Similarly, platinum is also a kind of investment stored and traded online for-profits—a kind of insurance policy against dollars. Below discussed are the reasons why traders should prefer trading platinum.
Platinum is actively used in the industrial market; the automotive industry uses platinum every day for manufacturing. It is in great demand, and thus investing in the precious metal would be profitable and a good investment. The economy is growing, and so is the demand for such products. Growth is the eventual destination of investments in precious metals as the industries are the developing source of the world.
Hedge over Dollars
Hedging is the risk management strategy that a trader can use to protect oneself and avoid risks. The dollar is the most valued international currency of the world, and thus every other currency is paired with the US dollar for trading. Platinum moves in an inverse direction of the US dollar, and this is a good investment. When the dollar is weak, platinum investments could be beneficial for a trader. Investing in precious metals is a protection against high rising dollars.
Speculation is trading on the securities; the traders invest and earn through the assets. Platinum supply and demand is concentrated due to its use in limited countries. However, in the US and Europe, it is used as a part of ornaments. Thus, making it a good investment for future use.
Imbalances in the market could increase the worth of platinum, such as mining strikes, safety failures in mines, an increase in demand in the market and many other market factors.
Places to trade platinum
Platinum can be traded online and offline. Traders can look for well regulated and authorised brokers in the market. With these brokers, traders can invest and educate about the investment. Trading in CFD commodities is risky due to the volatility of the forex market. Traders must be ready to take high risks to earn profits through CFDs.
Brokers such as ABinvesting, ROinvesting, are the best brokers online to help traders with CFD trading in precious metals. They ease the process with trading tools and platforms to enjoy a smooth trading experience.
Ways to trade platinum
Platinum could be traded in various forms Platinum Bullion, CFDs, Futures, Options, ETFs and Shares. Moreover, the investors can purchase them in physical and online commodity ways as per the need.
Platinum bullion is purchased from the market just like gold and silver. The traders can buy them physically in bars or coins. These are available in the market and online to trade and store for future benefits with different sizes and patterns.
Futures contracts are legal agreements to buy and sell any commodity at a price on a future date. Platinum futures are available for trade in the New York Mercantile Exchange (NYME). Futures provide traders with a high position in the market with leverage and are the contracts that could be used for more leverage in case of price decline.