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How to Invest in Platinum [2024] | Step-by-Step

How to Invest in Platinum
Bogdan Stojkov

Summary: If you’re looking for a reliable way to invest in platinum, you should consider an online commodity-trading service. With over 30 million investors relying on its regulated platform, eToro has established itself as one of the most convenient and trustworthy options for investing in commodities.

Best Commodities Broker for Intermediate Traders and Investors

  • Invest in 30+ commodities and 3,000+ other assets including stocks and cryptocurrencies.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Platinum as a commodity

Platinum is a rare and valuable metal widely used in various industries, including automotive, jewelry, and electronics. As an investment commodity, it offers you an option to diversify your portfolios due to its low correlation with other assets.

Platinum’s limited supply and increasing demand contribute to its potential as a store of value. Investors can, therefore, access platinum through various investment vehicles, such as physical bars or coins, exchange-traded funds (ETFs), or futures contracts.

However, platinum prices can be volatile, influenced by factors like economic conditions, geopolitical events, and shifts in industrial demand. As such, thorough research and monitoring of market dynamics are crucial when considering platinum as an investment.

Can I invest in platinum?

Anyone can invest in platinum through a regulated third-party broker exchange like eToro. The way it’s done is by purchasing contracts for differences (CFDs) instead of buying the raw material itself. Namely, CFDs as financial instruments provide investors an opportunity to make a profit by speculating on the price movements of platinum.

How to invest in platinum?

When it comes to investing in platinum, one of the best ways to do so is through eToro—a reliable online broker service that deals with commodities. Besides being used by millions of users, eToro is also fully licensed by the Financial Conduct Authority (FCA).

eToro investing platform. Source: etoro.com

Step-by-step instructions on how to buy platinum

Buying platinum on eToro requires taking just a few steps:

  • Step 1: Visit eToro and create an account (personal or business);
  • Step 2: Decide how much money you want to transfer to your new eToro account;
  • Step 3: Connect your bank account to eToro and transfer the desired amount of money in the fiat currency of your choice;
  • Step 4: Choose Commodities, search for Platinum on the left, and finally specify how much you want to purchase.

Disclaimer: 76% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. This content is not intended for US users. eToro USA LLC does not offer CFDs, only real Crypto assets, Stocks and ETFs are available.

Best Commodities Broker for Intermediate Traders and Investors

  • Invest in 30+ commodities and 3,000+ other assets including stocks and cryptocurrencies.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Current platinum price

Is platinum a suitable investment for me?

Just like investing in other commodities, it’s key to assess your investment goals, risk tolerance, and potential gains. Nevertheless, you should also keep in mind the following factors before venturing into the platinum market:

  • Risk and volatility: Platinum prices can be subject to significant fluctuations influenced by economic conditions, geopolitical events, and changes in industrial demand. Assess your risk tolerance and determine if you can withstand potential price volatility;
  • Market outlook: Consider factors such as industrial demand, technological advancements, and potential supply constraints that could impact the long-term prospects of platinum as an investment. As things stand, it’s projected that it will reach $11.45 billion by 2030.

Being new to investing in platinum shouldn’t mean not approaching the investment from the right angle. In essence, you shouldn’t look at platinum as an easy way to make a significant profit. Instead, view it as a finance tactic to diversify your portfolio.

Different ways of investing in platinum

Considering platinum investment should always include assessing your investment goals, available capital, and risk tolerance. Having said that, here are some of the most common ways of investing in platinum:

  • Investing in platinum CFDs: Investors can gain exposure to platinum by investing in platinum CFDs. They allow investors to speculate on the price movements of platinum without owning the physical metal. With CFDs, investors enter into an agreement with a broker to exchange the difference in platinum’s price from the contract’s opening to its closing;
  • Investing in platinum-focused ETFs: ETFs that specialize in platinum provide investors with exposure to the price movements of platinum without the need for physical ownership. These funds typically track the performance of platinum prices and offer liquidity and diversification benefits;
  • Trading platinum futures contracts: Futures contracts allow investors to speculate on the future price of platinum. By entering into a contractual agreement to buy or sell platinum at a predetermined price and date, traders can take advantage of price fluctuations and potentially generate profits.

Common mistakes to avoid when investing in platinum

When investing in platinum, it’s important to be aware of common mistakes and take steps to avoid them. Some of these errors to avoid include:

  • Lack of research: Failing to conduct thorough research on platinum market dynamics, price trends, and factors affecting the metal’s value can lead to uninformed investment decisions;
  • Overexposure or lack of diversification: Placing too much emphasis on platinum investment without considering diversification across different asset classes can expose your portfolio to unnecessary risk;
  • Ignoring risk factors: Failing to consider the risks associated with investing in platinum (e.g., price volatility and geopolitical factors) can lead to unexpected losses;
  • Impulsive decision-making: Allowing emotions, such as fear or greed, to drive investment decisions can lead to impulsive and irrational choices.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about how to invest in platinum

Can I invest in platinum?

Yes, investing in platinum via a regulated online exchange platform such as eToro is possible.

How to invest in platinum?

First create an account on an online exchange platform like eToro and move on from there.

Where to invest in platinum?

eToro is one of the most reliable online exchange services where you can start investing in commodities like platinum.

Is platinum a good investment?

It depends on various factors, some of which include your investment goals, risk tolerance, and overall portfolio status.

Best Commodities Broker for Intermediate Traders and Investors

  • Invest in 30+ commodities and 3,000+ other assets including stocks and cryptocurrencies.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.

  • Copy top-performing traders in real time, automatically.

  • eToro USA is registered with FINRA for securities trading.

30+ million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

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