Why Platinum Bullion is Gaining Popularity Among Australian Investors

Platinum is a precious metal with relative scarcity and significant demand for its strategic applications. It is of utmost importance to Australia, as it is used widely to manufacture various products such as high-end jewelry and automobiles. Also, there has been a noticeable rise in investing in platinum in the last few years, especially with the demand for platinum bullion on the market.

This article will focus on consumers' increasing demand for platinum and the potential of trading in platinum bullion instead of gold or other bullion products.

Understanding Platinum as an Investment Asset

Platinum is one of the most precious metals in the world, and its properties make it ideal for many industries. It is often called the “Rich Man’s Gold,” and it is gradually gaining recognition as an investment opportunity in Australia.

All platinum bullion-related items are often considered to be underpriced compared to gold. Though its development within the market is evident, there is not so much demand for platinum. Nevertheless, its demand for industrial purposes is higher. This is one of the reasons why many Australian investors are turning to it when diversifying their investment portfolio.

1. Beautiful Appearance

Platinum bullion, especially Australian platinum coins and bars, stands out because of its shiny nature. Pure platinum bars and coins are known for their beautiful and intricate designs. Although some investors get confused by platinum's similar greyish color to silver, they are different.

Another difference is that silver is matte compared to platinum, which is shiny and lustrous. While silver tends to change color after some time, platinum, on the other hand, remains the same and maintains its shine. As a result, platinum remains one of the most preferred precious metals in appearance. 

2. Exceptional Demand and Applications

Platinum is an industrial material that adds investment value. About 80% of platinum is used in the automobile industry, especially in the manufacture of catalytic converters, and investors mainly demand the rest.

New technology, such as the manufacture of electric vehicles, has also increased investors' interest in platinum. Retail investors within Australia get it as platinum coins and bars through platinum bullion investment.

3. Historical Price Trends

Another factor suggestive of platinum’s growth is its history as a valuable investment commodity. Since the beginning of the twenty-first century, the price of platinum has been rising, from $425 per ounce in 2000 to around $975 per ounce in 2024.

This precious metal has the potential to appreciate, as it touched its highest price of $2,213 per ounce in March 2008. To Australian investors, platinum offers a perfect foil as an immutable and increasing-value good. With the global demand for platinum constantly increasing, especially for platinum bullion, it remains a strong asset class to invest in.

4. Affordability Compared to Gold

Gold is costly, and not many people can afford it. When it comes to valuable metals, buying platinum bullion in Australia is cheaper than gold. Going by its history, platinum has not been priced anywhere near the price of gold.

Although considered cheaper than gold, platinum is also scarce. Thus, investing in it can give an investor worthy metals at lower prices. If you wish to diversify your collection or stick to affordable prices, buying platinum is better than gold and silver. To invest in the best platinum products, contact Perth Bullion for guidance. 

5. Increased Demand

Platinum is gradually becoming sought-after in the market through jewelry, coins, and bars. Previously, it was not easy to get platinum coins with a desirable fineness from a well-known manufacturer. Still, now there are high-quality platinum bullion items that you can buy from Perth Bullion.

With the finest product being produced by Perth Mint, the platinum coins and bars are bright and shiny, making them a good collector collection. The beauty of platinum mainly attracts investors, and it is also cheaper than gold for investment, making it an exciting proposition for investors.

6. Ongoing Supply Disruptions

Supply factors are identified as key determinants of the value of platinum, particularly the supply from miners. Investors in platinum bullion know that shortages can lead to a sharp rise in price. This is due to the shutdown of platinum mines and interferences in the supply chain in the last two decades.

Additionally, the disruptions make it possible for Australian investors to buy cheap platinum bullion in anticipation of a potential price surge. Many investors sometimes see it as favorable to invest in platinum for the long term, unlike gold or silver, whose prices do not change drastically.

7. Safe Haven Potential

Platinum has similar haven attributes to gold and silver. As has been realized, platinum prices are well known to rise during economic or geopolitical instability. For instance, platinum reached a record high in 2008, during the outbreak of the global financial crisis. That is why bullion experts recommend adding platinum to your investment portfolio.

Furthermore, there is a growing global interest in platinum as an investment commodity. It is also seen as a form of value preservation and storage, making it the ultimate investment asset of choice.

Conclusion

Gold may get all the attention as a precious metal, but platinum is also available. You can buy platinum coins or bars from Perth Bullion if you want a bullion product that is beautiful to look at and the value of a long-term investment. Due to its industrial application, good price tendencies, and status as a good haven – platinum- Australian investors consider it a more secure alternative to gold and silver.