Learn interesting geological facts about platinum - where to find it, top producers, and why to invest
|Physical Properties of Platinum
||Platinum, with trace amounts of other elements such as iron, copper, nickel, gold, or rare earth elements
||Tin-white, silver-gray, steel-gray, dark gray
||4 to 4.5
||Automotive, computers, refining, jewelry, investment
Why is it that such value is assigned to precious metals? What determines their equivalent cost in a national currency? The variables that determine these values are varied and dynamic, meaning it is important to do the necessary homework when it comes to investing in precious metals, especially platinum.
Platinum is valuable due to its rarity and unique chemistry. It is famously un-reactive, and will not tarnish or rust even under the most severe circumstances. With only 0.005 parts per million found in the Earth’s crust, platinum is rare even by the strictest of standards.
In short, securing an adequate source of such a metal is a smart investment strategy for any properly diversified portfolio. Continue reading to learn geological facts about this precious metal and why you should consider investing.
Where is Platinum Found on Earth?
A majority of the world’s platinum comes from South Africa, with Russia supplying the second highest yields, and Colombia the third. The gold bearing sands of these three countries provides the ideal geological conditions to recover this very rare metal.
In addition to gold bearing sands, deposits of platinum are often found in outcroppings of plutonic rocks like olivine and chromite. The formation of these rocks are a testament to platinum’s pedigree, as all were exposed to extremely high temperature and pressure in order to produce this most valuable of metals.
Although platinum is rare, the methods for recognizing where it is most likely located have become highly accurate, focusing on igneous deposits that show the telltale signs of prolonged heat and pressure.
How Much Platinum Exists?
Platinum is considered a Noble Metal. It is an extremely stable element used in many areas of industry. The annual supply is, on average, 130 tons. It is the rarest of the precious metals, and its scarcity makes it an ideal commodity for investors to purchase.
Volcanic heat produced well below the Earth’s crust acts as a blast furnace helping to form the crystals of platinum that miners remove from the surrounding matrix. These long term, high energy natural processes have produced deposits of a metal so rare that if we able to collect all the platinum ever extracted in the history of mankind, it would only fill a room with 25 cubic feet of volume.
What is Platinum Used For?
Platinum’s future value is almost certainly guaranteed, given the number and variety of uses that it enjoys throughout society. Being a malleable and ductile metal, it is ideal for jewelry, dental appliances, electrical contacts, electrical equipment, and other items that cannot suffer from oxidation or corrosion.
Platinum has proven invaluable in defense projects and the automotive industries, particularly within the nose cones of missiles, jet engine parts, and catalytic converters in automobiles. Compounds containing platinum have also proven successful in the fight against various forms of cancer like leukemia. Platinum alloys are even currently being used for building replacement valves in human hearts.
From medicine to the military to motor vehicles, platinum plays a major role in human progress and survival, securing its place as a wise investment for the discerning investor.
Why is Platinum Valuable?
Scarcity often makes for valuable commodities, yet those commodities can also suffer due to their rarity. Investors must be wise when choosing rare commodities to invest in. Platinum is both scarce and difficult to extract, adding to its value as a globally traded commodity.
The labor intensive nature of platinum mining is almost unparalleled, as it requires up to 12 tons of ore and 6 months of labor to extract one troy ounce.
When it comes to platinum, we know all about this metal from the ground up and we utilize this knowledge to ensure the best investing options. If you are interested in investing in platinum bullion for your portfolio, browse our website for the best prices on coins and rounds.