Portfolio diversification driven by robust industrial demand
After gold and silver, platinum is the most popular precious metal for investors. Unlike gold and silver, which are used to protect wealth, platinum is most often purchased by market speculators who expect industrial demand to increase, subsequently driving up the value of the metal.
While it’s true that there often is a relatively predictable correlation between gold and silver, we often find that the platinum market seemingly has a mind of its own. It’s driven mostly by industrial supply, seasonality and other demands.
Current Spot Charts
History has demonstrated when the stock market does poorly gold and silver tend to do well. However, because of its broad industrial applications, and its role as both a practical and a luxury jewelry metal, platinum often rallies along with the stock market.
Therefore, while building a portfolio of precious metals that will protect and grow your wealth no matter what is happening in the marketplace, investing in platinum may be a wise choice.