Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Personal Finance Gold How to Buy Platinum Updated Jul 31, 2024 8-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Maryalene LaPonsie Written by Maryalene LaPonsie Expertise: Personal finance, investing, insurance, student financial aid Maryalene LaPonsie has been writing professionally for nearly 25 years, including 15 years specializing in education, healthcare, and personal finance topics. She is a graduate of Western Michigan University, where she studied political science and international business. She resides in West Michigan. Learn more about Maryalene LaPonsie Reviewed by Catherine Valega, CFP® Reviewed by Catherine Valega, CFP® Expertise: Financial planning, retirement planning, education planning, insurance planning, investment planning Catherine Valega, CFP®, CAIA®, founded Green Bee Advisory LLC to help women, impact givers and investors, and small businesses build, manage, and preserve their financial resources. She's been practicing financial planning for more than 20 years. Learn more about Catherine Valega, CFP® Platinum is a precious metal with automotive and industrial uses that can be made into jewelry and prized by investors. There is also a serious deficit in the amount of platinum available, which led analysts to predict that prices will climb through this year and into the next. But is platinum investing right for you? Keep reading as we explore the market, its pros and cons, and what you should consider before purchasing. Table of Contents Skip to Section Where to buy platinumHow to buy platinumShould I buy platinum? What is platinum investing? Investing in platinum is similar to investing in other precious metals such as gold and silver. You can buy physical platinum in coins, bars, and rounds to keep yourself or hold in an IRA or purchase platinum stocks. These may be funds holding physical platinum or platinum mining companies’ shares. While platinum is expected to increase in value over the next year—from a current price of around $900 per ounce in March 2024 to $1,200 per ounce by 2025—precious metals are usually best as long-term investments. Their prices can be volatile and fluctuate rapidly in the short term, although they typically maintain or gain value over time. How does platinum investing work? In some ways, platinum investing is like buying stocks, bonds, or other investments. You should keep all these basics in mind: All investments, including platinum, are subject to capital gains tax when sold. You shouldn’t keep all your money in any one asset, and industry experts often advise keeping no more than 20% of your portfolio in precious metals. No investment is guaranteed, and you should consider all risks before buying any asset. In the case of platinum, there are some additional factors to consider, especially if you plan to purchase physical metal. Coins and bars must be stored securely to avoid the risk of theft. If you keep them at home, you will likely need to pay higher insurance premiums for coverage through your homeowner policy. Secure storage options, such as depositories, include insurance coverage, but you’ll need to pay a monthly fee to keep your platinum there. Then, when you want to convert your investment to cash, it is more involved than taking a withdrawal from the bank. Instead, you need to find a buyer and transfer possession of your platinum. Given platinum’s industrial and investment value, it may not be hard to find a buyer, but the sales process involves additional steps that you might not have with other assets. Where to buy platinum Once you are ready to buy platinum, you have several options available. These include buying physical platinum, stocks that derive value from platinum and platinum futures or options. Precious metals investment optionBest forBuy platinum from a dealerTaking possession of physical platinumOpen a platinum IRARetirement savings and a tax breakPurchase platinum ETFsThose who don’t want to store physical platinumPurchase mining stocksBenefiting from the metal industry as a wholeInvest in platinum futures or optionsAdvanced investors with a high risk tolerance Buy platinum from a dealer If you are interested in having access to physical platinum at your home, then buying from a dealer is the option for you. How it works Buying platinum from a dealer is similar to any other retail transaction. There may be local precious metals dealers where you can buy platinum on-site and take it home. Or you could purchase from an online dealer and have your purchase shipped. What to know Since platinum prices are constantly changing, dealers rarely list their prices online. However, many do have their inventory available for review. To complete the transaction, be prepared to speak to a representative on the phone. How to get started Check out our recommendations for the best online gold dealers. Open a platinum IRA Platinum can be used to boost your retirement savings if you hold your precious metals in an IRA. However, you’ll have to follow IRS rules to do so. How it works The IRS allows precious metals such as platinum to be held in self-directed IRAs. These retirement plans require a custodian to administer the account and platinum to be stored in an IRS-approved depository. Depending on how your IRA is set up, you may get a tax deduction for contributions or tax-free withdrawals in retirement. What to know Only platinum that is 99.95% pure is eligible to be held in a precious metals IRA. What’s more, bars, rounds, and coins must be produced by an accredited or certified manufacturer or a national government mint. How to get started Read our reviews of the best precious metals IRA companies. Purchase platinum exchange-traded funds (ETFs) If you like the idea of investing in platinum but are not thrilled about storing it, an ETF could be a solution. How it works An ETF is an exchange-traded fund that can be bought and sold like stocks and mutual funds. Several platinum ETFs are available, and these are funds that hold physical platinum and derive their value from the metal. What to know There are relatively few North American ETFs available. GraniteShares Platinum Trust, Sprott Physical Platinum and Palladium Trust, and Physical Platinum Shares ETF are all options. How to get started Research and compare different platinum ETFs to find one that fits your investment strategy. Read our guide on how to invest in precious metals. Purchase mining stocks Mining stocks appeal to those who want to benefit from platinum but aren’t sure about putting their money in the metal itself. How it works When you buy mining stocks, you purchase a share of the company. That means the value of your investment isn’t tied directly to the price of platinum but rather to the company’s strength. What to know Mining companies may extract different precious metals, but some specialize in platinum. Anglo American Platinum and Impala Platinum Holdings are two publicly traded companies to consider. How to get started Look into various mining companies and their performance to decide which stocks to invest in. Invest in platinum futures or options Platinum futures and options are best for experienced investors who are comfortable with the risks they entail. How it works With a platinum future, an investor is committing to making a purchase in the future at a fixed price. Options may include the right to purchase but not the obligation. What to know Futures and options are complex investments and shouldn’t be undertaken by anyone who doesn’t fully understand the risks and costs involved. Work with an investment advisor to learn more about platinum futures and options. How to get started Consult with a financial advisor to explore if futures and options align with your investment goals. Ask the expert Catherine Valega CFP® ETFs are a great way to get exposure to platinum and other commodities. They are liquid and easy to get into and out of. I would leave the futures and options to institutional investing pros. How to buy platinum If you’d like to buy platinum, follow these steps: Research the price of platinum: If you plan to buy physical platinum, check the spot price first. Each dealer will apply a markup to their products, and knowing the spot price will help you gauge how much that markup may be. Decide how much to invest: Next, determine how much you will invest in platinum. Remember, most experts recommend not devoting more than 20% of your portfolio to precious metals. Open an account: Except for physical platinum, all the buying options above will require you to open either a self-directed IRA or a brokerage account. Once the account is open, you can fund it with whatever amount you decide to devote to platinum purchases. Buy platinum or securities: Finally, execute your investment plan. Buy and securely store physical platinum or purchase securities such as stocks, ETFs or futures with your brokerage account. If you’re interested in commodity exposure, platinum, or other commodities, I would discuss your options with your financial advisor, who will develop solutions by considering your long-term goals, time horizon, and risk tolerance. Catherine Valega CFP® Should I buy platinum? Platinum isn’t right for everyone, and you should consider your personal preferences and investing goals when deciding whether to purchase this precious metal. Here are some questions to ask yourself: Do I have an inflation hedge in my portfolio already? If you don’t already own gold or silver, buying platinum might be a good way to guard against the effects of inflation on your portfolio. Am I looking for short-term gains or a buy-and-hold investment? Because their pricing is so dynamic, precious metals typically aren’t something investors use to make money quickly in the short term. However, if you want an asset that will hold its value in the long term, platinum could be a good choice. Do I need my investments to be liquid? Related to the question above is whether you need an investment that can be quickly liquidated for cash. If so, platinum ETFs or mining stocks may be better for you. Pros and cons of platinum investing To sum it all up, here’s a final overview of the pros and cons of platinum investing. Pros Rare metal that is valued for both industrial uses and as an investment. Analysts predict platinum prices will rise through 2025. Precious metals such as platinum are tangible assets that aren’t tied to any country’s currency and may serve as a hedge against inflation. Cons Owning physical platinum requires secure storage and possibly additional insurance costs. Fewer platinum products are available as compared to gold and silver. Platinum products can be counterfeited, and investors must be cautious when purchasing.