Platinum is a highly priced precious metal that has practical applications in a wide variety of everyday products from vehicles to dentistry to jewellery. It has always had not only sentimental value for those who possess it, but also significant financial value, with the past couple of decades seeing exponential growth in its value.
Let’s take a minute to learn about what the value of platinum has been and how we can determine the value of your platinum today. Is now a great time to invest in the silvery precious metal or is it a great time to sell?
What Has Platinum Been Worth?
Long-term investments in platinum have paid off. If you go back to 1992, platinum investors who purchased at $390.75 CDN per troy ounce are all laughing today. Especially when the price continued to climb and eventually peek with the 2008 financial crisis when the price of platinum jumped to over $2,000 CDN. This was caused by investors losing confidence in the stock market and choosing the safety and security of precious metals – this is often the case in times of turmoil and the 2008 crisis was no exception.
Of course, that wild ride ended with a drop of almost 50% of its value from the spring to the fall of 2008, but knowing when to sell is of course the most important part of investing.
Since 2008, the price has generally fallen to $1,200 and has somewhat plateaued. Is this a sign that the price is set to rise once again? How confident are you that the economy is stable?
No one knows for certain what the future has in store for the price of platinum, but one thing is certain – all those platinum investors who bought in the 1990s and held all still have significant gains on their investments!
What is My Platinum Worth Today?
There are dozens of factors that affect the price of platinum, so determining the accurate value of a single piece of platinum is not as simple as looking at a line chart. Whether you are interested in investing in platinum, selling platinum or finding out how to value your platinum for insurance purposes, it’s important to have an accurate idea of your precious metals’ value.
Since platinum is a commodity used to manufacture goods, it is traded throughout the day in exchanges with spot prices that continually rise and fall. This trading activity makes a fully accurate valuation impossible without knowing more about the precious metal.
For a quick Canadian valuation of your platinum bars or platinum coins based purely solely on their weight, check the spot price of platinum right now on Royal Bull’s Precious Metals Prices Chart. Just always keep in mind that the prices in the chart are based only on weight and not the many other aspects of platinum.
Here are some other ways that the price of platinum could be higher than what the spot price will tell you.
The Demand for Platinum Affects Its Value
When platinum’s demand increases in key economic areas it is needed, such as jewellery, automotive and investments, its value will often rise. The opposite is also true, and the price can drop when fewer people buy jewellery and cars or reduce their investment holdings in platinum.
The Value of Platinum Depends on The Emotional Connections with the Buyers and Sellers
If a platinum coin was given as a gift from a family member who has passed on, it might have more value than a similar coin purchased from a store. Precious metals are beautiful, last forever and can create connections with people and places that create far greater value than what any buyer could match. Just like your Beanie Baby collection, the sentimental value attached to your platinum coin or platinum bar may inflate its value.
Platinum’s Value Can Depend on the Bar or Coin’s Design
Although rare, cast platinum bars often have only the essential platinum contents stamped on one side. A minted platinum bar or a platinum coin can have a wide range of designs on two sides of the product, from logos to animal designs to the Statue of Liberty.
The type and quality of design can lead to varying prices for platinum products that weigh the same. For example, a one-ounce platinum American Eagle platinum coin can sell for more than a simple platinum bar with a standard logo. (Even if the logo is one of acclaimed mint Valcambi Suisse.)
The Price of Platinum Products Depends on Where The Products Were Minted
Similar to when you purchase other goods such as vehicles, clothes and electronics, a well-known mint’s one-ounce platinum coin could sell for more than a one-ounce platinum coin made by a new mint from a not-so-well-known country or mint within it.
Your Platinum Product’s Value Depends on Its History
Selling a platinum bar that was minted 100 years will likely net you more than a similar bar minted today. This has to do with its rarity, but also the heritage of the precious metal product. (Where it was made, where it has been and how it was used.)
The Value of Platinum Depends on Who is Buying It
Selling your platinum bar to your neighbourhood precious metal dealer might not result in the cash windfall you were hoping for, but a national precious metal buyer and seller might be able to give you far more value. Doing your research, reaching out to the right buyers/sellers and understanding all of the factors that influence the price of platinum will help to ensure you get the best valuation possible.
The Value of Platinum Depends on Its Scarcity
Sources for platinum are rare – only a few places on Earth have been found with significant deposits. And with its need in the automotive and jewellery industries, it is a precious metal that is always in demand. That being said, when economies falter, platinum can be a precious metal that may drop in price as well.
Many Factors Affect the Price of Platinum in Canada
The full value of your white-silver platinum products requires an analysis of all of the factors above and then some. It’s likely worth more than just its weight. To consider the many other variables needed when determining the worth of your platinum, contact Royal Bull right now.
