Disadvantages of Platinum Investment

It is probably impossible to find an investment which would not have any disadvantages and platinum is not exception. Platinum like all other investments which provide relative safety do not offer any greater possibilities for profit or at least demand certain amount of time and patience.

The prices of platinum are relatively stable and rising in certain ratio with other precious metals. Thus any greater change in ratio between precious metals in favor of platinum are less likely, while the fall of platinum prices after July 2008 even indicate otherwise. The situation in October 2008 when the price of one ounce of platinum is only slightly higher than the price of one ounce of gold might be the unique chance to purchase platinum at lower price ratio to gold, however, it also might indicate a change of usual price ratio between platinum and gold for a longer period. Thus platinum does not seem such good investment in compare with gold.

One of disadvantages of platinum in compare to silver and gold is also its short history in the financial sector which does not provide any greater historical overview. Silver and gold have been popular investment options since the ancient times, while platinum's history in the financial sector began in the second half of the 20th century. Thus future trend of platinum prices is much less predictable. Besides that platinum is also a subject of taxation which is about 20% varying few percents up or down from country to country.


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Platinum Price