Platinum an excellent investment opportunity!

Investment

oi-Sneha

By Sneha B K

Updated: Thursday, April 4, 2013, 16:15 [IST]

Precious metals and stones are always points of attraction to the Indian investors as these have a strong ability to defend against economic uncertainty and rising inflation. Besides Gold, no other metal has gained much popularity in the eyes of investors.

However, Noble metal Platinum is becoming a new flourishing investment boulevard along with Gold and Silver these days.
It is, slowly & steadily, gaining popularity in investment platforms since it has a very small financial trading history. Venturing in platinum helps in presenting an intelligent investment strategy for long term and also broadens the horizons of investment portfolio.

Platinum is a good investment avenue due to its demand - supply mismatch. Platinum productivity is only 3 million ounces which is nearly about the tenth of that of Gold and this results in its lower supplies. Recently market experts have positioned it as the second finest investment stake among various metals.

They also sense that it can play a tactical role if not strategic role in an investment portfolio. This precious metal is available in the form of coins in physical structure and also available as active trade in National Spot exchange.

Comparison between Platinum & Gold

Earlier, not more than 10 years ago, the rate of platinum was very high and it was out of reach of common investors. It was almost 150 percent costlier when compared to that of gold. But with the extended increase in the gold prices as well as high global recession in the countries where platinum is manufactured along with the industrial sector, the rates of platinum came down nearly equivalent to that of gold. Gold is around Rs. 30,000 per 10 grams these days while Platinum is Rs 34,000 per 10 grams. As per financial analysts & industry professionals, Platinum rates will rotate around this slab until the economic recovery comes back on track. On the other hand, the current prices of platinum are offering great prospects of investments for smaller investors.

Comparison between Platinum & Diamond

Platinum and Diamonds have always been the first and foremost choice for rich and renowned people. With the increasing rates of Gold, now more and more Indian investors are shifting towards diamond and platinum as they are equally productive investment deals. Diamonds are available in only physical form and also due to lack of awareness regarding its cuts & clarities if they are not hallmarked, they are in less demand.

Also, Hallmark diamonds are least available. On the other hand, Platinum doesn't have to face such problems now. They are easily traded on the National Spot Exchange (NSEL) and also physical delivery is taken care by Platinum Guild India.